Balance trade gains with domestic agri interests while dealing with US: SEA
The Solvent Extractors’ Association of India (SEA) has asked the Centre to balance the trade gains with the domestic agriculture interests while navigating a trade deal with the US.
In his monthly letter to the members of SEA, Sanjeev Asthana, President of SEA, said the edible oil and oilseed sectors stand at a critical crossroads as India moves forward with its proposed Bilateral Trade Agreement (BTA) with the US. The tariff concessions on US agricultural products such as soyabean and maize pose a risk, undermining India’s domestic oilseed ecosystem, particularly the soyabean value chain.
He said agricultural stakeholders, including SEA, have consistently highlighted the need to retain protective duties on key agri inputs to avoid disadvantaging Indian farmers — especially in a global environment of asymmetric subsidies.
Stating that Indian farmers grow non-GMO variety of soyabean, he said allowing imports of soyabean of GM variety could distort the market and make non-GMO soya meal uncompetitive. The industry’s concerns, therefore, are not biased, he said.
SEA supports a calibrated approach — one that encourages fair trade but protects vulnerable agriculture sector. “We remain engaged with the government to ensure that trade liberalisation does not come at the cost of farmer viability or agro-processing sustainability,” he said.
Kharif oilseeds
On kharif sowing, he said oilseed acreage has reached 156.76 lakh hectares (lh) as of mid-July, marking only a marginal adjustment from 162.80 lh compared to last year. This resilience highlights the sector’s strategic importance and the confidence of Indian farmers despite fluctuating price cycles.
A significant development this season is the continued rise in groundnut sowing, driven by favourable prices and growing domestic demand. “However, soyabean acreage has dipped by over 6 per cent compared to the previous year, possibly due to shifting crop preferences and regional weather variability. This trend merits close observation, as soyabean remains a crucial pillar in India’s oilseed economy and a major source of oil and meal,” he said.
Biofuel impact
On the impact of global biofuel trends on Indian edible oil sector, Asthana said two global shifts are raising serious concerns for India’s edible oil ecosystem. Indonesia’s push for B50 biodiesel, using 50 per cent palm oil in fuel, and the US redirection of soyabean oil into renewable fuels, are together tightening global edible oil supplies.
As palm and soya oils are increasingly diverted to energy use, India, being heavily import-dependent, is facing the risk of higher prices, reduced availability, and greater volatility. The price of crude palm oil has already risen between June and July. This is particularly concerning at a time when domestic demand continues to rise. SEA remains engaged with policymakers to ensure India’s edible oil sector remains secure, competitive and aligned with long-term nutrition and self-reliance goals, he said.
Health advisory
Asthana termed the recent advisory issued by the Union Health Ministry encouraging the display of oil and sugar boards in offices and workplaces a progressive stride toward advancing public health awareness.
“For the Indian edible oil industry, this presents a valuable opportunity — not as a challenge, but as a shared responsibility — to align with national health goals while preserving the integrity of our rich culinary traditions. Rather than viewing this as a restriction, the industry can play a leading role in reframing the conversation toward education, moderation and responsible consumption. It is also a chance to highlight the unique nutritional benefits of traditional Indian oils such as mustard, groundnut, sesame and rice bran, which are naturally rich in essential fatty acids and deeply embedded in our food culture. Promoting these oils not only supports healthier cooking practices but also strengthens the rural economy and the livelihoods of millions of oilseed farmers,” he said.
Published on July 22, 2025