Rising Global Edible Oil Prices Support India’s Oilseed Sector, Says SEA

In a monthly update shared with SEA members on Wednesday, Asthana said domestic edible oil prices are continuing to track international market trends, helping mustard prices remain above the minimum support price (MSP). Mustard is currently trading at nearly Rs 7,000 per quintal against the MSP of Rs 6,200 per quintal.

He said April 2026 recorded an all-time high rapeseed-mustard crushing volume of nearly 16 lakh tonnes, which helped improve domestic edible oil supplies while also ensuring stronger returns for farmers. The favourable price environment, he noted, is reducing the Government’s expenditure on MSP procurement, storage and inventory carrying costs.

“Sustained price realisations and improving market sentiment may also encourage farmers to expand oilseed acreage during the upcoming kharif season, supporting domestic production growth over the longer term,” Asthana said.

The SEA President also pointed to improving prospects for sunflower cultivation. The Government has raised the MSP for sunflower seed to Rs 8,343 per quintal for the 2026-27 season from Rs 7,721 per quintal in 2025-26, an increase of Rs 622 per quintal. According to Asthana, the revised MSP is expected to strengthen farmer confidence and encourage higher sowing of sunflower alongside mustard.

SEA’s second estimate for the 2025-26 castor crop placed production at 17.16 lakh tonnes, compared with 15.90 lakh tonnes in the previous season. The area under castor cultivation increased by around 3 per cent to 8.90 lakh hectares, while productivity improved to 1,928 kg per hectare.

“The improved crop outlook reflects better farmer participation and favourable productivity trends, which are expected to support the availability of castor seed and related value-added products during the year,” he said.

Asthana further said final estimates place India’s rapeseed-mustard production at 117.6 lakh tonnes for 2025-26, marginally higher than 115.2 lakh tonnes reported last year.

He also described the Government’s Mission for Cotton Productivity (2026-31) as a positive step for the edible oil industry. Higher cotton output, he said, would improve cottonseed availability and support additional production of cottonseed oil.

“In an import-dependent economy like India, every additional tonne of domestically produced edible oil contributes meaningfully towards reducing external dependence and strengthening national food security. The Mission, therefore, carries importance not only for the textile sector but also for India’s broader edible oil balance,” Asthana added.

This article has been republished from The Business World.