India Can Alter Its Edible Oil Industry from the Ground Up

India’s edible oil sector stands at a decisive crossroads, defined by surging consumption, heavy import dependence, and an urgent call for sustainable domestic growth. As dietary preferences evolve and demand accelerates, the challenge extends beyond meeting consumption needs; it lies in building a self-reliant, innovation-driven ecosystem powered by forward-looking policies and empowered farmers. The sector’s future will hinge on India’s ability to close the widening demand–supply gap, boost productivity through technology and research, and create an integrated value chain that rewards every participant, from cultivator to consumer.

Amid this backdrop, The Interview World engaged in an insightful discussion with Dr. Rajan Sudesh Ratna, Deputy Head and Senior Economic Affairs Officer at the South and South-West Asia Office, ESCAP, during the High-Level Policy Dialogue on “Navigating India’s Policy Landscape in the Edible Oil Sector,” organized by ASSOCHAM. Dr. Ratna shared his expert perspective on the current state of India’s edible oil industry, underscored the sector’s potential to attract and empower farmers, and explained how comprehensive policy reforms could reduce import dependence. He also emphasized that the adoption of modern technology can transform the sector, making it more resilient, efficient, and globally competitive.

Here are the key insights from his thought-provoking conversation.      

Q: How do you view the current landscape of the edible oil sector in India, and what are your thoughts on its growth trajectory?

A: I believe India’s demand for edible oil will continue to rise steadily. This growth stems from our food habits. Edible oil is an essential part of Indian cooking, not just in fast-moving food segments but in everyday household use. Beyond domestic consumption, businesses increasingly rely on edible oils, and exports are expanding as Indian products gain global recognition. Consequently, demand will remain strong for years to come.

The real challenge, however, lies in determining how much of this demand India can meet through its own production. That is the critical question, which can unfold the sector’s defining opportunity. The edible oil industry will continue to grow, but landholdings cannot expand indefinitely. Therefore, the focus must shift to enhancing productivity. This is where research, innovation, and improved seed varieties become indispensable. Modern agricultural practices, efficient farming techniques, and the use of quality inputs can significantly raise yields.

At the same time, the private sector, particularly oil mills, must play a proactive role. A model similar to India’s sugarcane industry, where mills maintain buyback arrangements with farmers, could bring much-needed predictability to both pricing and production. Farmers must see tangible benefits; otherwise, their participation and commitment will remain uncertain.

Another pressing concern is the continuous shift in cropping patterns. Many farmers are moving away from traditional or cash crops toward other forms of production. For instance, in Punjab, once the heart of India’s Green Revolution, agriculture is now losing ground to alternative industries. Such shifts, if left unchecked, could reverse hard-earned gains in food self-sufficiency. India, after achieving near self-reliance in rice and wheat, must guard against sliding back into dependence due to these transitions.

In essence, ensuring a sustainable and self-reliant edible oil ecosystem will require innovation, coordinated policy support, and a renewed focus on empowering farmers to stay invested in this vital sector.

Q: What kind of policy interventions do you think are needed to make the edible oil sector more attractive and rewarding for farmers?

A: The edible oilseed sector demands long-term strategic thinking and consistent policy planning. Short-term measures, such as offering subsidies year after year, are not enough. What India needs instead is a comprehensive and enduring policy framework that strengthens the entire value chain. This approach must focus on sustainably increasing production, optimizing land use, and ensuring that every acre contributes to higher yields and better returns. These critical issues require thoughtful discussion, coordinated action, and a clear long-term vision to secure the sector’s future.

Q: India continues to grapple with a high dependence on edible oil imports. What policy initiatives do you think are needed to bridge this gap?

A: Let’s consider why India continues to import edible oils. Two main factors drive this dependence. First, domestic production still falls short of meeting national demand. Second, imported oils often arrive at lower prices than those produced locally. In India, the cost of producing oilseeds remains significantly higher than that of palm or soybean oil in major exporting countries.

To change this, India must make its oilseed and edible oil production more competitive by reducing production costs across the value chain. Achieving this requires a comprehensive approach. Farmers may grow the seeds, but inefficiencies emerge as the product moves from the farm to the oil mill. High transportation and handling costs inflate prices even before processing begins.

At the mill level, many producers continue to rely on outdated technology. This leads to excessive power consumption, low efficiency, and high wastage, factors that further raise production costs. To compete globally, India must modernize its oil mills, adopt energy-efficient technologies, and minimize wastage during extraction.

Ultimately, competitiveness will come not from piecemeal solutions but from reengineering the entire production chain. By improving efficiency from the field to the refinery, India can strengthen its domestic edible oil sector and reduce its reliance on imports.

Q: In what ways can the adoption of modern technology transform and strengthen the edible oil sector?

A: Technology isn’t just coming, it’s already reshaping how we grow, process, and optimize crops. Today, with advances in artificial intelligence and analytics, we can forecast crop patterns with pinpoint accuracy by region, by province, even by field.

India still holds vast untapped potential for palm oil cultivation. Palm oil, in particular, is cost-effective to produce when extracted from the kernel. If we scale that intelligently, the benefits could be transformative.

But it’s not only about growing more; it’s about growing smarter. Technology can dramatically cut waste in processing and optimize resource use in the field. Farmers, for instance, can use tech tools not for fertilizers or chemicals, but to reduce water waste and fine-tune every input that affects yield per hectare.

The goal? Precision. Efficiency. Productivity. From adopting high-yield seed varieties to optimizing every acre, technology gives us the power to do more with less, and to do it better.