Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?

Updated 11 Apr 2026 · From UPSC Prelims GS Paper I 2019, Q42

Contents13
UPSC Prelims GS2019Indian Economy
  1. ASpices
  2. BFresh fruits
  3. CPulses
  4. DVegetable oils
Show answer

Answer: (D) Vegetable oils

The correct answer is (D) — Vegetable oils.

India is one of the largest importers of vegetable oils (like palm oil, soybean oil, and sunflower oil) in the world.

Among all agricultural imports, vegetable oils consistently account for the highest value.

Pulses are also imported significantly, but their value is lower than vegetable oils.

Tip: India imports huge quantities of palm oil — vegetable oils top our agricultural import bill.

Why this was asked

India imports vegetable oils worth billions of dollars annually, making it the largest component of agricultural imports by value.

India imports over 60% of its edible oil needs, primarily palm oil from Indonesia and Malaysia, creating massive foreign exchange outflow.

The question tests whether students know the difference between import volume versus import value — oils are expensive per unit compared to other agricultural commodities.

India's Vegetable Oil Imports

Indian Economy vegetable oils

India's Vegetable Oil Imports: Highest Agricultural Import by Value

Must know

Vegetable oils are India's highest agricultural import by value for the last five years

India imports palm oil, soybean oil, and sunflower oil in large quantities

India is one of the world's largest importers of vegetable oils

Good to know

Import dependency exists due to insufficient domestic production vs consumption needs

Why India Imports

India's domestic edible oil production meets only about 40-45% of total consumption demand. The growing population and changing dietary patterns have increased vegetable oil consumption faster than domestic production capacity.

Major Vegetable Oils Imported

Oil Type

Primary Source Countries

Usage

Import Share

Palm Oil

Indonesia, Malaysia

Cooking, food processing

Highest volume

Soybean Oil

Argentina, Brazil, USA

Cooking, industrial use

Second highest

Sunflower Oil

Ukraine, Russia

Premium cooking oil

Third highest

Canola Oil

Canada, Australia

Health-conscious cooking

Lower volume

Economic Impact

Vegetable oil imports account for ₹70,000-80,000 crores annually in recent years

Palm oil dominates imports due to lower cost and versatility in food processing

High import dependency makes India vulnerable to global price volatility

Government promotes National Mission on Oilseeds and Oil Palm to reduce imports

Exam traps

Trap: Students often assume pulses are the highest import — they are second highest by value

Trap: Don't confuse volume with value — palm oil leads in both

Trap: Spices and fresh fruits have much lower import values compared to oils

India's Agricultural Imports by Value

Indian Economy agricultural commodities imported spices fresh fruits pulses

Ranking India's Agricultural Imports: Value-wise Analysis

Must know

Vegetable oils rank first, pulses second in agricultural import value

Fresh fruits and spices have much lower import values

Good to know

Top imports reflect India's production deficits in essential commodities

Agricultural Imports Ranking

Rank

Commodity

Approximate Annual Value

Key Reason for Import

1st

Vegetable Oils

₹70,000-80,000 crores

Production meets only 40-45% of demand

2nd

Pulses

₹15,000-25,000 crores

Protein demand exceeds domestic supply

3rd

Fresh Fruits

₹5,000-8,000 crores

Premium varieties, off-season demand

4th

Spices

₹3,000-5,000 crores

Specific varieties not grown domestically

Import Patterns

Pulses imports fluctuate based on monsoon performance and domestic production

Fresh fruits imports include apples, kiwi, and exotic fruits for urban markets

Spices imports seem contradictory since India is a major spice exporter

India imports different spice varieties than what it exports

Question Context

This UPSC question tests knowledge of India's agricultural trade deficit components. Understanding that vegetable oils dominate our agricultural import bill is crucial for economic policy questions.

Exam traps

Trap: India exports spices but also imports — don't assume zero imports

Trap: Pulse imports vary yearly, but consistently rank second in value terms

Trap: Fresh fruit imports sound significant but are much lower than oils/pulses

India's Palm Oil Import Dependency

Indian Economy palm oil

Palm Oil Imports: India's Largest Agricultural Import Component

Must know

Palm oil forms the largest component of India's vegetable oil imports

Indonesia and Malaysia supply over 85% of India's palm oil imports

India is the world's largest palm oil importer

Good to know

National Mission on Oil Palm aims to reduce import dependency

Strategic Importance

Palm oil is the cheapest vegetable oil globally, making it essential for India's food processing industry and cooking oil needs. Its long shelf life and versatility make it preferred for commercial food production.

Import Challenges

Price volatility in international markets directly impacts India's import bill

Crude palm oil is imported and refined domestically to save costs

Malaysia-Indonesia dominance creates supply concentration risk

Environmental concerns over palm oil plantations affect global supply

Palm Oil Import Process

%%{init: {"flowchart": {"wrappingWidth": 460}}}%%
flowchart TD
  s1["`**Import as Crude Palm Oil**
Cheaper to import unprocessed oil`"]
  s2["`**Domestic Refining**
Indian refineries process crude oil`"]
  s3["`**Distribution**
Refined oil reaches consumers and food industry`"]
  s4["`**Blending**
Mixed with other oils for different uses`"]
  s1 --> s2
  s2 --> s3
  s3 --> s4

Government Initiatives

National Mission on Oil Palm (NMOOP) launched to boost domestic production

₹11,040 crore allocation for oil palm cultivation expansion

Target to increase oil palm area from 3.7 lakh to 10 lakh hectares

Focus on Northeastern states and Andaman for suitable climate conditions

Exam traps

Trap: Don't confuse palm oil with coconut oil — both are different imports

Trap: Indonesia-Malaysia supply palm oil, not all vegetable oils to India