Policy Update
Pritha Chowdhary
Background
Edible oils form an essential component of India’s food and nutritional security, and oilseeds play a vital role in the livelihoods of millions of farmers. Oilseeds contribute not only to nutritional security but also to farmers’ welfare, serving as an important cash crop that sustains rural incomes and employment.
Globally, the edible oil sector has expanded significantly, driven largely by the production of soybean, palm, and rapeseed oils, alongside moderate growth in sunflower seed oil production. India ranks as the fourth-largest player in this global landscape, after the USA, China, and Brazil. However, significant yield gaps and limited area expansion have prevented the country from matching its growing consumption levels. India’s total edible oil production was recorded at 12.18 million tonnes during 2023-24. The country is able to meet only 44 percent of its domestic demand for edible oils through internal production(PIB NMEO-oilseeds). Despite being among the world’s largest producers of oilseeds, India remains substantially dependent on imports to bridge its edible oil deficit.The country’s growing demand for edible oils has outpaced domestic production.
Against this backdrop, the Union Cabinet approved the National Mission on Edible Oils-Oilseeds (NMEO-Oilseeds) on 3 October 2024. The Mission will be implemented for seven years, from 2024-25 to 2030-31, with a financial outlay of ₹10,103 crore (PIB NMEO-oilseeds). Its central objective is to increase domestic oilseed production, reduce import dependence and move India towards greater self-reliance in edible oils.
Objectives of the mission
- Harness innovations: Utilizing already available and early-maturing innovations and technological breakthroughs for addressing the yield gap.
- Accelerate dissemination: Promoting the rapid dissemination of improved seed varieties and technologies within crop-specific clusters involving cooperatives, FPOs, and the private sector.
- Targeting expansion: Encouraging the expansion of oilseed cultivation in fallow areas specially in eastern states and promoting intercropping through demonstrations.
- Increasing availability of improved seeds: Addressing deficiencies in the seed production and distribution system to ensure availability and accessibility of quality seeds.
- Enhance market access: Linking oilseed farmers and value chain partners with processors to improve their market access and ensure better returns.
- Support extraction and collection of secondary oilseeds: Bolstering the production of secondary oilseeds and Tree Borne Oils through targeted interventions.
Functioning
NMEO-Oilseeds adopts a value-chain and cluster-based approach covering major oilseed crops such as rapeseed-mustard, groundnut, soybean, sunflower and sesame. It also seeks to improve the collection and extraction of edible oils from secondary sources such as cottonseed, rice bran and tree-borne oilseeds. One of the major components is the establishment of more than 600 Value Chain Clusters across 347 districts. These clusters are intended to cover more than 10 lakh hectares annually and bring together farmers, Farmer Producer Organisations (FPOs), cooperatives and other value-chain partners (Official PIB NMEO-Oilseeds).
A major focus is on the availability of high-quality seeds. The Mission proposes a five-year rolling seed plan through the SATHI portal, allowing states and seed-producing organisations to anticipate demand and improve timely seed availability. It also provides for 65 new seed hubs and 50 seed storage units in the public sector. The Mission also promotes high-yielding and high-oil-content varieties, improved agricultural practices and technology-based extension. Demonstrations through ICAR institutions, Krishi Vigyan Kendras and State Agriculture Departments are intended to improve farmers’ adoption of improved varieties and cultivation practices (Official PIB NMEO-Oilseeds).
Another important intervention is the expansion of oilseed cultivation into rice and potato fallow areas and through intercropping. This approach seeks to increase production without depending entirely on expansion of agricultural land. Better utilisation of existing fallow land can be particularly relevant in regions where rice-based agriculture leaves land unused during part of the year. The Mission also addresses the post-production stage by encouraging investment in post-harvest infrastructure, oil extraction and processing facilities. This is important because increasing farm-level production alone will not ensure greater domestic availability unless adequate aggregation, storage, processing and marketing capacity exists.
Performance
Since NMEO-Oilseeds was approved only in October 2024, it is still too early to measure its full long-term impact. Nevertheless, the latest available production figures indicate positive developments in the oilseed sector.
National Mission on Edible Oils-Oilseeds (NMEO-Oilseeds) is aimed at boosting domestic oilseed production and achieving self-reliance (Atmanirbharta) in edible oils.The progress report of the scheme is as below:
Table 1: Trends in Area, Production and Yield of Oilseeds in India
| Year | Area | Production | Yield |
| 2022-23 | 302.39 | 413.55 | 1368 |
| 2023-24 | 301.92 | 396.69 | 1314 |
| 2024-25 | 304.40 | 429.89 | 1412 |
Source: Ministry of Agriculture & Farmers Welfare, 2025 (Area in Lakh Ha, Production in Lakh Tonne and Yield Kg/ ha)
The increase in production is particularly notable because the expansion in cultivated areas was relatively modest. Production increased at a higher rate, while the cultivated area increased at a much lower rate. This suggests that productivity improvements contributed significantly to the increase in output. However, these figures should not be attributed entirely to NMEO-Oilseeds because the Mission began during 2024-25 and agricultural output is influenced by several factors, including weather conditions, prices, input availability and other government programmes. Therefore, a longer implementation period will be necessary to establish the Mission’s direct contribution.
The Economic Survey 2025-26 also reports that between 2014-15 and 2024-25, oilseed area increased by more than 18%, production increased by nearly 55% and productivity increased by about 31% (Economic Survey 2025-26, Chapter 6). These broader trends provide a positive context for the implementation of NMEO-Oilseeds.
Impact
The recent performance of India’s oilseed sector shows a combination of higher production, productivity gains and expansion across major producing states. Soybean and groundnut were the key drivers, with 2024–25 production reaching 152.68 lakh tonnes and 119.42 lakh tonnes, respectively—an increase of about 16.9% and 17.3% over the previous year(Final Crop Estimates, 2025). At the state level, Rajasthan remained the largest oilseed-producing state, contributing around 21.4% of national production, while Maharashtra recorded a particularly strong improvement in productivity, with oilseed yield rising by nearly 39% between 2023–24 and 2024–25.
Uttar Pradesh also expanded its role, with oilseed production increasing from around 2.23 million tonnes to 3.09 million tonnes, supported largely by an expansion in cultivated area. (Desagri) These trends suggest that the growth of oilseed production is being supported not only by increased acreage but also by productivity improvements, particularly in major producing states. However, sustaining this momentum will require continued investment in improved varieties, technology, irrigation and region-specific interventions under the Mission.
Emerging Issues
The oilseed sector continues to face several challenges that may constrain the success of the mission. Climate change risks, including irregular rainfall, droughts, heat stress and changing pest patterns, can adversely affect yields, highlighting the need for climate-resilient varieties and weather-based advisories. At the same time, the limited adoption of improved technologies remains a concern, particularly among small and marginal farmers facing constraints in awareness, input costs and technical assistance.
Inadequate post-harvest infrastructure for storage, processing, oil extraction and transportation can further lead to losses and reduce the gains from higher production. Regional concentration of oilseed cultivation also requires expansion into suitable areas, including rice and potato fallow lands, supported by region-specific technologies and effective state-level implementation.
Way Forward
It is recommended that greater emphasis can be placed on raising oilseed productivity through climate-resilient varieties, improved farming practices, efficient irrigation and stronger extension services. Farmer incomes can be strengthened through remunerative prices, effective procurement, improved market linkages and greater participation of FPOs and cooperatives. The Mission should also encourage sustainable expansion of cultivation, particularly in suitable rice and potato fallow areas and through intercropping, while considering local agro-climatic conditions.
Greater investment in post-harvest infrastructure is needed to improve storage, processing, oil extraction and transportation and reduce losses. In addition, research institutions such as ICAR and agricultural universities should be encouraged to develop and disseminate high-yielding, high-oil-content and climate-resilient varieties. It is also suggested that stronger value-chain integration among farmers, FPOs, cooperatives, processors and private buyers be promoted to improve aggregation and market access.
References
- Press Information Bureau, Government of India, National Mission on Edible Oils-Strengthening India’s Edible Oil Ecosystem, 2025. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2200287&lang=2®=3&utm
- Government of India, Economic Survey 2023-24, Chapter on Industry and Food Management. https://www.indiabudget.gov.in/budget2024-25/economicsurvey/doc/echapter.pdf?utm
- Press Information Bureau, Government of India, Targets for Self-Reliance in Oilseeds: Area, Productivity and Production, 2026. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2249830&lang=1®=1&utm
- Press Information Bureau, Government of India, Making Agriculture Self-Reliant and Globally Competitive, 12 December 2025. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2203201&lang=1®=3&utm
- Government of India, Economic Survey 2025-26, Chapter 6: Agriculture and Food Management. https://www.indiabudget.gov.in/economicsurvey/doc/eschapter/echap06.pdf?utm
- Ministry of Agriculture & Farmers Welfare. (2025, November 20). Record foodgrain output breaks all previous highs, adding new chapters of success to India’s agriculture sector. Press Information Bureau. https://www.pib.gov.in/newsite/erelcontent.aspx?lang=2®=48&relid=279069&utm
- Department of Agriculture & Farmers Welfare. (2025). Agricultural statistics at a glance 2024–25. Government of India. https://desagri.gov.in/wp-content/uploads/2024/11/Agricultural-Statisitcs-at-a-Glance-2024-25_%E0%A4%95%E0%A5%83%E0%A4%B7%E0%A4%BF-%E0%A4%B8%E0%A4%BE%E0%A4%82%E0%A4%96%E0%A5%8D%E0%A4%AF%E0%A4%BF%E0%A4%95%E0%A5%80-%E0%A4%8F%E0%A4%95-%E0%A4%9D%E0%A4%B2%E0%A4%95-2024%E2%80%9325.pdf?utm_
About the Contributor
Pritha Choudhury is a postgraduate in Economics from Jadavpur University. Her academic interests include public policy, economic development, innovation policy, and data-driven policy analysis.
Acknowledgment
The author extends sincere thanks to the Kavin Adithya CB, Sandra Menon and IMPRI team for their guidance and support in developing this Policy Update.
Disclaimer
The views and opinions expressed in this policy update are those of the author and do not necessarily reflect the official position of IMPRI or any affiliated institution. While every effort has been made to ensure the accuracy of the information and data presented, readers are encouraged to verify facts independently before relying on them for any decision-making purpose.
Read more at IMPRI:
Atal Pension Yojana (2015-2026): Assessing a Decade of India’s Pension Push
Kerala’s Higher Education Diplomacy: Analysing the “Study in Kerala” Initiative, 2025
