India’s oilseed production is expected to reach 41 million tons in 2025/26, according to the USDA.

India's oilseed production is expected to reach approximately 41 million tons in the 2025/26 crop year, according to the annual report from the attaché. United States Department of Agriculture (USDA) In New Delhi, the progress reflects favorable weather conditions and area expansion, but it will still not be enough to reduce the country's strong external dependence on the vegetable oil market. According to the document, domestic vegetable oil production should reach approximately 11.5 million tons in 2025/26, moderate growth compared to the previous cycle, mainly supported by increased supply of soybeans, rapeseed/mustard, and peanuts. Even with the production expansion, vegetable oil consumption in India is expected to reach about 27 million tons in 2025/26, driven by population growth, urbanization, and increased demand from the food industry. This mismatch between production and consumption keeps the country as the world's largest importer of edible oils. Total vegetable oil imports are projected at approximately 16 million tons in 2025/26, with palm oil being the most prominent, followed by soybean oil and sunflower oil. Specifically regarding soybean oil, external purchases are expected to remain high, driven by the product's competitiveness in the international market and the growing demand from the food and processing industry in the country. The report highlights that, despite government efforts to encourage domestic production, the rate of consumption growth continues to exceed local production capacity. Among oilseeds, soybeans continue to gain relevance, with increased acreage and productivity, while crops such as rapeseed and peanuts continue to play an important role in the domestic supply of oil and meal. Even so, structural challenges such as low average productivity, land fragmentation, and dependence on weather conditions limit the more rapid advancement of production. According to the… USDAIndia is expected to remain highly dependent on imports in the medium term, even with policies to stimulate domestic production. The country continues to be a key player in the global vegetable oil trade, with a direct impact on international price formation, especially in the palm oil and soybean oil markets.

This text was translated by machine from Brazilian Portuguese.