MUMBAI, 27 June 2025: Depressed edible oil prices are likely to push Indian farmers away from growing traditional oilseeds such as soyabean and groundnuts, shifting instead to maize, which is in high demand for ethanol production.
This trend could keep India, the world’s largest edible oil importer, dependent on overseas supplies for its cooking oil needs.
India currently imports around 60% of its edible oil requirement. Pulses imports have also reached record levels in 2024, doubling year-on-year to hit 6.63 million tonnes.
"We fear that farmers will replace soyabean and tur with maize as they have not been getting proper prices for their oilseed produce," a government official cautioned. The official noted that while farmers see better returns on maize for ethanol, the government’s commitment to fully procure pulses might still encourage them to grow tur instead.
Despite cooking oil prices being firmer than last year, soyabean prices have remained 10% to 20?low the government-fixed minimum support price (MSP) of INR 4,892 per quintal since the new marketing year began in October 2024.
“Soyabean prices are below MSP because the realisation from soyabean meal has been weak,” explained Atul Chaturvedi, executive chairman of the Asian Palm Oil Alliance. “The low prices of DDGS [distillers dried grain soluble], a byproduct of crushed maize, have further pressured soyabean meal prices. Starting procurement early can encourage farmers to continue with soyabean,” he suggested.
According to government estimates, the area under soyabean cultivation has declined by 2%, and tur acreage is down 5% as of June 20 compared to last year.
In response, agriculture minister Shivraj Singh Chouhan has begun outreach efforts with farmers in major producing states such as Madhya Pradesh, Rajasthan, and Maharashtra. He promised support for boosting stagnant productivity, including genome editing for improved seed varieties, research on disease prevention, and greater mechanisation to counter labour shortages.
Chouhan’s ministry has also asked the petroleum ministry to restrict maize sowing in sugarcane belts so that key food crops like soyabean and pulses do not lose acreage.
Since the government’s ethanol-blended petrol programme gained momentum, average maize prices have soared from INR 14,000- INR 15,000 per tonne to INR 24,000-INR 25,000 per tonne over four years, making it a highly attractive option for farmers looking for stable returns.
