India Edible Oil Imports Seen Rising as Drought Hits Crops

India’s drought-hit kharif crops could push up imports of edible oils, animal feed and other agricultural raw materials in FY 2026-27. Kharif groundnut production could fall by more than 20% this year, according to the Solvent Extractors’ Association of India, while soybean supplies are expected to stay tight.

Agro & Food Processing reported the outlook on 29 October 2026. It cites drought in parts of Maharashtra, Telangana and Madhya Pradesh, on top of crop damage from excessive rainfall last year. These pressures matter for edible oil refiners, poultry feed makers, sugar mills and starch producers.

Will India’s Edible Oil Imports Rise in 2026-27?

Sandeep Bajoria, CEO of Sunvin Group, expects edible oil imports to rise from 16.5 million tonnes in 2025-26 to 17.5 million tonnes in 2026-27. The winter mustard harvest, which is still to come, will help decide how much oil the country needs to import.

How Does the Drought Affect Poultry Feed and Other Industries?

Soybean meal and maize make up around 80% of poultry feed. Divya Kumar Gulati, former president of the Compound Livestock Feed Manufacturers Association, said the industry has asked for permission to import 3 million tonnes of soybean meal, and that continued high feed prices could hurt poultry farmers. The sugar industry has secured an extension for raw sugar imports, and textile manufacturers want import duties on cotton removed. The starch industry may need to import more from China if maize supplies tighten because more maize goes to ethanol production.

Market Reaction and Industry Response

Industrial Front did not find a government response or price reaction tied to this outlook. The industry voices in the report are asking for import flexibility to bridge domestic supply gaps. The report also flags a potential El Niño as an added uncertainty.

What Happens Next?

Watch the winter mustard harvest, any decision on the soybean meal import request, and maize availability for starch makers. Each will show how large the import bill becomes in FY 2026-27.

Frequently Asked Questions

How much could groundnut output fall this year?

The Solvent Extractors’ Association of India says kharif groundnut production could drop by more than 20%.

How much edible oil will India import in 2026-27?

Sunvin Group’s Sandeep Bajoria expects 17.5 million tonnes, up from 16.5 million tonnes in 2025-26.

Which industries are asking for import relief?

Poultry feed makers want to import 3 million tonnes of soybean meal, textile makers want cotton duties removed, and the sugar industry has an extension for raw sugar imports.