Edible Oil Consumption in India | Rising Appetite

India’s appetite for edible oils has grown steadily for decades, and per-capita consumption in India now sits around 19.7 kg per year according to NITI Aayog’s August 2024 report. That number has climbed from 15.8 kg back in 2012–13, and demand keeps rising. Because domestic production covers only about 40–45% of needs, imports fill the gap. Understanding how much oil India consumes, where it comes from, and how it’s used helps explain everything from food prices to farm policy.

How Much Edible Oil Does India Consume?

India’s edible-oil consumption has grown dramatically over the past four decades. NITI Aayog’s report on edible oils records the jump from 5.34 million tonnes in 1986–87 to 25.84 million tonnes in 2021–22. Total demand for 2022–23 was estimated at 28.9 million tonnes, up from roughly 27.7 million tonnes the previous year.

Per-capita numbers tell a similar story of rising consumption. The same NITI Aayog report puts per-capita use at 19.7 kg per year, while government guidance from the Department of Food and Public Distribution cites around 19.00 kg per person annually. Rural and urban households differ noticeably in how much oil they use.

A PIB release on household consumption reported rural per-capita edible oil use at 10.58 kg per year and urban use at 11.78 kg per year in 2022–23. Those figures have climbed sharply from 5.76 kg and 7.92 kg respectively in 2004–05.

Where Does India’s Edible Oil Come From?

India is heavily import-dependent, with imports covering about 55–60% of total edible-oil needs. Imports were estimated at 16.5 million tonnes for 2022–23, according to NITI Aayog. The scale of that import bill is substantial.

Government guidance notes that in 2020–21, India imported 133.52 lakh tonnes of edible oil, costing roughly ₹80,000 crore. Three oils dominate those imports:

• Palm oil makes up about 56% of imports.
• Soybean oil accounts for about 27%.
• Sunflower oil contributes about 16%.

This heavy reliance on imported palm oil from Southeast Asia makes Indian cooking-oil prices sensitive to global markets, currency moves, and export policies in producing countries.

Per-Capita Consumption by Region and Oils

Regional diets shape which oils Indians consume. In the north, mustard oil dominates kitchens; in the south, coconut oil and groundnut oil are common; and across much of the country, soybean oil and palm oil are staples for everyday cooking. India’s government guidance on oilseeds notes that while palm oil leads imports, domestic production of groundnut, rapeseed-mustard, soybean, and sunflower oils covers the rest of demand.

The government’s National Mission on Edible Oils targets maintaining per-capita consumption at around 19.00 kg per person per year through 2025–26, focusing on awareness and domestic production. The Department of Food and Public Distribution hosts an official Edible Oil Scenario overview that tracks these figures.

What Changed Over the Past Two Decades

Rising incomes, urbanization, and changing diets have driven India’s edible-oil consumption upward. As households earn more, they tend to use more cooking oil and buy more processed foods made with edible oils. PIB-reported consumption data captures that shift clearly: rural use nearly doubled between 2004–05 and 2022–23, and urban use rose by roughly half.

The challenge for policymakers is balancing this growing demand against domestic production. India grows oilseeds across most states, but yields remain below global averages, and oil-palm cultivation is still developing. The push toward self-reliance in edible oils is a stated policy goal, yet imports will likely remain a major part of the supply picture for years.

For households, the practical takeaway is simple: knowing which oil suits your cooking style and budget matters more than ever as prices fluctuate. If you’re comparing options for your kitchen, our roundup of the best edible oil in India breaks down the top choices by health profile, smoke point, and value.