Government Launches National Mission on Edible Oils-Oilseeds with Rs 10,103 Crore Investment

The Indian government has sanctioned the National Mission on Edible Oils-Oilseeds, allocating Rs 10,103 crore to enhance domestic oilseed production. This initiative aims to reduce India's dependency on imported cooking oils, which currently exceeds 50% of the nation's annual requirement. The Union Cabinet, led by Prime Minister Narendra Modi, has endorsed this mission to achieve self-sufficiency in edible oils.

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The mission will span seven years, from 2024-25 to 2030-31, with a goal to increase primary oilseed production from 39 million tonnes in 2022-23 to 69.7 million tonnes by 2030-31. Additionally, the plan includes expanding oilseed cultivation by an extra 40 lakh hectares. India primarily imports palm oil from Indonesia and Malaysia, soybean oil from Brazil and Argentina, and sunflower oil from Russia and Ukraine.

Boosting Domestic Oil Production

The NMEO-Oilseeds will focus on enhancing the production of key oilseed crops such as rapeseed-mustard, groundnut, soybean, sunflower, and sesamum. It also aims to improve collection and extraction efficiency from secondary sources like cottonseed, rice bran, and tree-borne oils. Alongside NMEO-OP for oil palm, the mission targets increasing domestic edible oil production to 25.45 million tonnes by 2030-31.

To achieve these goals, the mission will promote high-yielding seed varieties with high oil content. Cultivation will extend into rice fallow areas and intercropping will be encouraged. The mission plans to leverage advanced global technologies like genome editing for developing superior seed varieties.

Infrastructure and Support Initiatives

A five-year rolling seed plan will be introduced online through the SATHI portal to ensure timely availability of quality seeds. This platform will enable states to form advance agreements with seed-producing agencies such as cooperatives and farmer producer organizations (FPOs). The public sector will see the establishment of 65 new seed hubs and 50 seed storage units.

Over 600 value chain clusters will be developed across 347 districts, covering more than 10 lakh hectares annually. These clusters will be managed by value chain partners including FPOs and cooperatives. Farmers in these clusters will receive high-quality seeds, training on Good Agricultural Practices (GAP), and advisory services on weather and pest management.

The government will support FPOs, cooperatives, and industry players in establishing or upgrading post-harvest units. This support aims to enhance recovery from sources like cottonseed, rice bran, corn oil, and tree-borne oils (TBOs). An Information, Education, and Communication (IEC) campaign will promote awareness of recommended dietary guidelines for edible oils.

Reducing Import Dependency

India's reliance on imports accounts for 57% of its domestic edible oil demand. To tackle this issue, the government has launched several initiatives including the National Mission on Edible Oils-Oil Palm (NMEO-OP) with an outlay of Rs 11,040 crore in 2021 to boost oil palm cultivation. The Minimum Support Price (MSP) for mandated edible oilseeds has been significantly increased to ensure fair prices for farmers.

The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) continues to provide MSP through price support schemes and price deficiency payment schemes. Additionally, a 20% import duty on edible oils has been imposed to protect domestic producers from cheap imports and encourage local cultivation.

The mission aims to significantly boost domestic oilseed production while advancing self-reliance in edible oils. This effort is expected to reduce import dependency, conserve foreign exchange reserves, and increase farmers' incomes.