India, May 24 -- India's edible oil industry remains heavily dependent on imports despite repeated government attempts at self-sufficiency. The country imports vegetable oils worth more than Rs1.6 lakh crore annually, making it one of the most vulnerable large economies to global edible oil disruptions.

That vulnerability is now returning to the spotlight. Indonesia, the world's largest palm oil producer, is considering fresh export restrictions to support its upcoming B50 biodiesel programme expected to begin in H2 2026. Under the policy, diesel will require 50% palm oil blending, compared to 40% currently.

That single policy shift could increase Indonesia's domestic palm oil consumption by nearly 5.3 million tonnes annually. Less expo...