Government Launches National Mission on Edible Oils-Oilseeds to Boost Domestic Production and Self-Sufficiency

The Indian government has sanctioned the National Mission on Edible Oils-Oilseeds, allocating Rs 10,103 crore to enhance local production and reduce dependency on imported cooking oils. Currently, India imports over half of its annual edible oil needs. This mission, approved by the Union Cabinet led by Prime Minister Narendra Modi, aims to achieve self-sufficiency in edible oils through increased domestic oilseed production.

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Boosting Domestic Oilseed Production

The mission will span seven years, from 2024-25 to 2030-31, with a budget of Rs 10,103 crore. Modi highlighted this initiative as a significant move towards Atmanirbharta, supporting farmers and promoting sustainable agriculture. The government plans to increase primary oilseed production from 39 million tonnes in 2022-23 to 69.7 million tonnes by 2030-31 and expand cultivation by an additional 40 lakh hectares.

India currently imports palm oil from Indonesia and Malaysia, soybean oil from Brazil and Argentina, and sunflower oil mainly from Russia and Ukraine. The NMEO-Oilseeds will focus on boosting production of key crops like rapeseed-mustard, groundnut, soybean, sunflower, and sesamum. It also aims to improve extraction efficiency from secondary sources such as cottonseed, rice bran, and tree-borne oils.

Enhancing Seed Quality and Availability

The mission targets increasing domestic edible oil production to 25.45 million tonnes by 2030-31, meeting about 72% of the projected domestic requirement. This will be achieved by promoting high-yielding seed varieties, expanding cultivation into rice fallow areas, and encouraging intercropping. Advanced global technologies like genome editing will be used to develop high-quality seeds.

To ensure timely seed availability, an online five-year rolling seed plan will be introduced via the SATHI portal. This will enable states to form advance agreements with seed-producing agencies such as cooperatives and farmer producer organisations (FPOs). Additionally, 65 new seed hubs and 50 storage units will be established in the public sector to bolster seed production infrastructure.

Developing Value Chain Clusters

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

Support will be provided to FPOs and industry players for establishing or upgrading post-harvest units. This 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 dietary guidelines for edible oils.

Reducing Import Dependency

The mission seeks to significantly boost domestic oilseed production, advancing self-reliance in edible oils while reducing import dependency. Currently, imports account for 57% of India's domestic demand for edible oils. To address this issue, the government has launched several initiatives including the National Mission on Edible Oils-Oil Palm (NMEO-OP) with a budget of Rs 11,040 crore in 2021.

The Minimum Support Price (MSP) for mandated edible oilseeds has been increased to ensure fair prices for farmers. The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) continues to provide MSP through price support schemes. Additionally, a 20% import duty on edible oils has been imposed to protect domestic producers from cheap imports.

This comprehensive approach aims to conserve foreign exchange while increasing farmers' incomes by enhancing local production capabilities in the edible oils sector.