Higher global edible oil prices and tighter imports strengthen India’s oilseed outlook
India’s oilseed sector is getting a lift from higher global edible oil prices and tighter import availability. Industry estimates point to stronger mustard prices, record rapeseed-mustard crushing and better incentives for farmers to expand oilseed acreage in the next season.
Higher global edible oil prices and tighter import supplies are improving the outlook for India’s domestic oilseed sector, according to Solvent Extractors’ Association of India president Sanjeev Asthana. In his latest monthly note to association members, he said the strongest effect is currently visible in mustard, where domestic prices are moving in line with imported edible oils and giving growers and crushers a better market environment.
Asthana said mustard is trading at around Rs 7,000 per quintal, well above the minimum support price of Rs 6,200 per quintal. That matters on two levels. Farmers are able to realise prices above the support benchmark, while the government faces less pressure to procure, store and carry stocks under the MSP system. Processing activity is also reinforcing the trend. India recorded a near-record crushing of almost 16 lakh tonnes of rapeseed-mustard in April 2026, a level that improved domestic edible oil availability while supporting better returns across the value chain.
The association argues that the current price setting could influence the next planting cycle as well. If market sentiment remains firm, farmers may expand oilseed acreage in the upcoming kharif season. Sunflower is another crop gaining support from policy changes. The government has raised its MSP for 2026-27 to Rs 8,343 per quintal from Rs 7,721 in 2025-26, an increase of Rs 622 per quintal. SEA says that sharper price assurance should make sunflower more attractive alongside mustard.
The broader oilseed picture is also improving in some other segments. SEA’s second all-India estimate for the 2025-26 castor crop puts production at 17.16 lakh tonnes, up from 15.90 lakh tonnes a year earlier. Area is estimated to have increased by about 3% to 8.90 lakh hectares, while productivity improved to 1,928 kilograms per hectare. The association also said final rapeseed-mustard production is estimated at 117.6 lakh tonnes, compared with 115.2 lakh tonnes last year.
Asthana linked longer-term edible oil prospects to India’s recently approved Mission for Cotton Productivity for 2026-31. Higher cotton output would also mean more cottonseed availability and, in turn, more cottonseed oil production. In an economy that still depends heavily on imported edible oils, each additional tonne produced domestically reduces external dependence and strengthens food security. Taken together, current prices, strong crushing and a better domestic crop base are giving India’s oilseed economy a more constructive outlook than it had earlier in the year.