India may import more food, feed and farm commodities as drought hits crops

Pune: India is likely to import more food, feed and agricultural raw materials in this financial year, as drought-hit crop production raises supply concerns and industries seek easier imports to rein in costs, according to people familiar with the matter.

Cooking oil imports could increase as kharif soybean and groundnut output is expected to fall, while concerns persist over the winter mustard crop. The sugar industry has already secured an extension for raw sugar imports. The poultry industry is seeking permission to import soybean meal and maize, while textile makers want the removal of import duty on cotton. The starch industry fears it may need to import more starch from China if more maize is diverted to ethanol production.

The impact of El Nino on agriculture is set to increase the share of imported staples in Indian kitchens, as the strongest El Nino on record has hit the production of essentials such as pulses, sugar, oilseeds and paddy.

India's soybean imports from the least developed countries in Africa have surged to a record level, as last year's crop was affected by excess rainfall. The soybean shortages are expected to continue in this financial year, as drought has wilted crops across Marathwada, Vidarbha, Telangana, and parts of Madhya Pradesh. "We have requested the government to allow import of 30 lakh tonnes of soybean meal as the prices of soybean meal and maize, which account for 80% of poultry feed, are already high, even as the harvest is going up," said Divya Kumar Gulati, former president, Compound Livestock Feed Manufacturers Association. "If we don't allow imports, then the prices of poultry can go haywire and the farmers will suffer losses." Along with soybean, the production of kharif groundnut could fall more than 20% this year, according to the latest estimate of the Solvent Extractors' Association.

"We expect the overall edible oil imports to increase from 16.5 million tonnes in 2025-26 to 17.5 million tonnes in 2026-27, as we are facing the impact of drought on our domestic oilseeds production. We will have to wait and watch the production of the mustard crops to know the exact figures," said Sandeep Bajoria, CEO of Sunvin Group, a commodity brokerage house.