The Indian government has launched the National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds) to increase domestic production of oilseeds and reduce dependence on imported edible oils. The mission, which will run from 2024-25 to 2030-31, has a financial commitment of Rs 10,103 crore. The goal is to increase primary oilseed production from 39 million tonnes in 2022-23 to 69.7 million tonnes by 2030-31. This, combined with the NMEO-Oil Palm mission, aims to produce 25.45 million tonnes of edible oil domestically, covering around 72% of the projected national demand.
However, India is not yet self-reliant in oilseed production, with the country still importing close to 60% of its edible oil needs. This is due to a persistent gap between domestic production and rising consumption, as well as deeper structural challenges such as low yields, shrinking acreage, and less favorable crop economics. According to Sudhakar Rao Desai, CEO of Emami Agrotech, self-reliance in oilseed production is not just a goal, but a strategic imperative for food and trade security.
The main challenges preventing self-reliance in oilseed production include low productivity levels, limited improved seed varieties, and water stress. Additionally, oilseeds often lose out to other crops such as pulses, wheat, and cereals, which have a more robust and predictable support ecosystem. A level playing field for oilseeds is essential to address these challenges.
The impact of oilseed imports on India’s economy and farmers is significant. The annual foreign exchange outflow exceeds Rs 1.25 lakh crore, putting a heavy burden on the trade balance. It also exposes India to global market volatility, which can translate into uncertainty for farmers. International price crashes can deflate domestic prices, making cultivation risky unless backed by strong institutional support. Therefore, it is essential to address the challenges and work towards self-reliance in oilseed production to ensure food and trade security for the country.