Cabinet Approves ₹10,103 Crore National Mission on Edible Oils to Boost Domestic Production

In a significant move to reduce India’s reliance on imported edible oils, the Cabinet has approved the launch of the National Mission on Edible Oils with a budget of ₹10,103 crore. The mission aims to enhance domestic oilseed production, targeting an increase from the current 12.7 million tonnes (MT) to 20.2 MT by 2031. India currently imports around 57% of its annual edible oil consumption, which stands at approximately 24 million tonnes.

Focus on Key Oilseeds and Expanded Cultivation

The mission will prioritize the cultivation of key oilseeds such as rapeseed-mustard, groundnut, soybean, sunflower, and sesamum. Efforts will also be made to increase oil extraction from secondary sources like cottonseed, rice bran, and bore oils. The initiative aims to raise India’s self-sufficiency in edible oil production to about 72% by 2031.

Currently, mustard oil contributes 40% of domestic output, followed by soybean at 24%, and groundnut at 7%. The area under oilseed cultivation will be expanded from 29 million hectares (MH) to 33 MH, with the goal of increasing total oilseed production from 39 MT (2022-23) to 69.7 MT by 2030-31.

Advanced Technologies and Seed Infrastructure

The mission will promote the adoption of high-yielding, high oil content seed varieties, expand cultivation into rice fallow areas, and encourage intercropping. Speaking on the mission, Minister of Information and Broadcasting Ashwini Vaishnaw said, "The mission will leverage cutting-edge global technologies, such as genome editing, to boost seed quality."

Additionally, the mission will implement a 5-year rolling seed plan through the 'Seed Authentication, Traceability, and Holistic Inventory (SATHI)' Portal. This will enable states to establish advance agreements with seed-producing agencies, including cooperatives, Farmer Producer Organizations (FPOs), and both public and private seed corporations.

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To bolster seed production infrastructure, 65 new seed hubs and 50 seed storage units will be established in the public sector.

Development of Value Chain Clusters

Over 600 value chain clusters will be developed across 347 districts, covering more than 1 million hectares annually. These clusters, managed by FPOs, cooperatives, and other public or private entities, will provide farmers access to high-quality seeds, training in Good Agricultural Practices (GAP), and advisory services on weather and pest management.

Support for Farmers and Price Protection

In 2021, the government launched the National Mission on Edible Oil Palm with an outlay of ₹11,040 crore to boost palm oil cultivation. Building on this, the new edible oil mission includes measures to protect farmers by ensuring remunerative prices for oilseeds.

Duties on crude palm, soybean, and sunflower oils have been increased from 5.5% to 27.5%, while the levy on refined edible oils has been raised from 13.75% to 35.75%. These measures aim to promote domestic oil production and reduce dependence on imports.

Furthermore, under the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA), the government will continue purchasing oilseeds at Minimum Support Prices (MSP) through price support and price deficiency payment schemes. This will provide an assured income to oilseed farmers and incentivize increased production.

With this mission, the government is focused on ensuring a steady, self-reliant supply of edible oils, improving farmers’ incomes, and reducing the country’s dependence on imports.