Why has India become increasingly import-dependent for edible oils despite being a major agricultural economy?

FY25 India imported record level of edible oil. Import dependency on edible oil reached 58%, high alighting major dependence. Edible oil Imports: 1) Major oil imported are palmol, groundnut, peanut oil etc. 2) Import from Malaysia and Indonesia → palmol, Argentina and Brazil others. Reason for major dependency for edible oil: 1) Low productivity: India edible oil productivity very lower than other countries. 2) Rising demand: ↑ Income level ↑ Demand 3) Limited Area: Limited area under edible oil production, Oilseed → Groundnut, Palmol → Archies. 4) Seasonal: Majority of edible oil production in India dependences on kharif harvesting. 5) Other non-food uses: edible oil use for other industry such cosmetics, massage deodorant. 6) Poor policies: Lack of MSP for oil seed discouraging farmers from cultivating oil seeds. → 1) National Mission for oil seed and oil palm → Palmol production focus on North-East states → Price to farmers for oil seed production → Reduction in import duty for reducing inflation of short term. Measures to lean:

Restricted: Majorly of edible oil production in India dependences on kharif harvesting. 5) Other non-food uses: edible oil use for other industry such cosmetics, massage deodorant. 6) Poor policies: Lack of MSP for oil seed discouraging farmers from cultivating oil seeds. Measures to lean: 1) National Mission for oil seed and oil palm 2) Palmol production focus on North-East states 3) Price to farmers for oil seed production 4) Reduction in import duty for reducing inflation of short term. Thus India need long-term multi-pronged strategy to promote oil seed production, Assure income and farmers so bring can go long way in reducing dependence.

— Jayant Garg · AIR 64