Higher global prices for edible oils and tighter import supplies are creating positive momentum for India’s domestic oilseed sector, particularly mustard oil, according to Sanjeev Asthana, President of the Solvent Extractors’ Association of India (SEA).
In his monthly communication to SEA members, Asthana noted that domestic edible oil prices are closely tracking imported oil prices, which supports current mustard prices around ₹7,000 per quintal, exceeding the minimum support price (MSP) of ₹6,200 per quintal.
In April 2026, record crushing figures revealed nearly 16 lakh tonnes (lt) of rapeseed-mustard were processed, strengthening the availability of domestic edible oil and improving farmer earnings. Asthana emphasized that this trend benefits farmers by increasing their incomes while alleviating the government’s burden related to MSP procurement, storage, and carrying costs, creating a favorable environment for farmers, the industry, and the overall edible oil economy.
“Sustained price realizations and improving market sentiment may also encourage farmers to expand oilseed acreage during the upcoming kharif season, supporting domestic production growth in the long term,” Asthana stated.
Sunflower Strengthening
Asthana also highlighted a positive alignment of sunflower seed prices with MSP support. The government has raised the MSP for sunflower to ₹8,343 per quintal for the 2026-27 period, an increase from ₹7,721 per quintal in the previous year, which strengthens price assurance and encourages farmers to cultivate both sunflower and mustard.
For the 2025-26 season, SEA’s second all-India castor crop estimate projects production at 17.16 lt, an increase from last year’s 15.90 lt. Acreage under castor has grown by approximately 3 percent to 8.90 lakh hectares, with productivity rising to 1,928 kg per hectare.
“The improved crop outlook reflects better farmer participation and favorable productivity trends, which are expected to support the availability of castor seed and related value-added products throughout the year,” he added.
Regarding rapeseed-mustard final crop estimates, total production for 2025-26 is projected at 117.6 lt, compared to 115.2 lt in the previous year.
Cottonseed Supplies to Rise
Asthana referred to the recently approved Mission for Cotton Productivity (2026-31) as a significant development with long-term implications for the edible oil sector. Increased cotton production is expected to enhance cottonseed availability and increase cottonseed oil production.
“In an import-dependent economy like India, every additional tonne of domestically produced edible oil contributes meaningfully to reducing external dependence and strengthening national food security. The Mission thus holds importance not only for the textile sector but also for India’s broader edible oil balance,” Asthana concluded.
Published on May 20, 2026
