Informist, Tuesday, Jul. 22, 2025

MUMBAI – India's edible oil sector is facing new challenges as several countries adopt the biofuel trend, leading to the diversion of edible oils for biofuel production, according to the Solvent Extractors Association. Indonesia's push for B50 biodiesel, which uses 50% palm oil in fuel, and the US redirection of soybean oil into renewable fuels are matters of concern for India's edible oil ecosystem, the association said in a release.

These are tightening global edible oil supplies, the association said. As palm and soy oils are increasingly diverted to energy use, heavily import-dependent India is facing the risk of higher prices, reduced availability, and greater volatility, the association said.

"The price of crude palm oil has already risen between June 2025 and July 2025. This is particularly concerning at a time when domestic demand continues to rise," the association said. The association is engaging with policymakers to ensure India's edible oil sector remains secure and competitive, it said.

The association said the proposed tariff concessions to the US for agricultural products, such as soybeans and maize, will also pose a risk and undermine India's domestic oilseed ecosystem, particularly in the soybean value chain. "... stakeholders, including SEA, have consistently highlighted the need to retain protective duties on key agri-inputs to avoid disadvantaging Indian farmers, especially in a global environment of asymmetric subsidies," the association said, adding that it is engaged with the government to ensure that trade liberalisation does not come at the cost of farmer viability or agro-processing sustainability.

The association's President Sanjeev Asthana will lead a 20-member delegation to Russia from Aug. 30 to Sept. 7 to study the Russian sunflower oil complex and establish direct contacts with leading producers and exporters, SEA said. End

Reported by Taniva Singha Roy

Edited by Saji George Titus

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