The Daily Brief The trade chaos behind your cooking oil
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Aug 25, 2025 Explore India's complex reliance on imported cooking oil and the government's efforts to boost local production amidst challenges like low profit margins. Delve into India's impressive rise in solar energy, highlighting innovative strategies that defy limited resources. Discover the impact of state control on renewable energy policies and the implications of tariffs on solar exports, especially in the competitive global market. Join the conversation on food security, inflation, and the future of energy in India.
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Why Palm Oil Rules The Indian Pantry
- India is the world's second-largest edible oil consumer with per-capita use near 20 kg, much above recommended levels.
- Palm oil dominates consumption because it yields far more oil per hectare at the lowest cost.
Thin Margins, Low Capacity, Big Imports
- Domestic oilseed production covers only about 40–45% of consumption, forcing heavy imports.
- Razor-thin industry margins and underutilised refineries (46% capacity) drive consolidation and weak local growth.
Import Concentration Creates Strategic Risk
- India imports nearly 60% of its edible oil, mainly palm from Indonesia and Malaysia and sunflower from Russia/Ukraine.
- This concentration creates sharp vulnerability to policy, war, and price swings abroad.