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National Edible Oil Mission (Only English Text)

According to a NITI Aayog report (August 2024), India ranks first globally in the production of rice bran oil, castor seed, safflower, sesame, and niger seed. The National Mission on Edible Oils (NMEO) aims to strengthen the country's oilseed ecosystem and achieve self-reliance in edible oil production.

2025-12-15 17:30:15 | Admin

Per capita domestic consumption of edible oils in India has increased significantly, rising from 5.76 kg/year in rural areas and 7.92 kg/year in urban areas in 2004-05 to 10.58 kg/year and 11.78 kg/year respectively in 2022-23. This represents an increase of 83.68 percent in rural areas and 48.74 percent in urban areas during this period.
India's total edible oil production during 2023-24 was recorded at 12.18 million tonnes. The country is able to meet only 44 percent of its domestic demand for edible oils through internal production. Despite being one of the world's largest oilseed producers, India relies heavily on imports to bridge its edible oil deficit. Notably, import dependence on edible oils has decreased from 63.2 percent in 2015-16 to 56.25 percent in 2023-24, indicating a marginal improvement in self-reliance from 36.8 percent to 43.74 percent.
In the global scenario, India is the fourth largest country after the USA, China, and Brazil, contributing approximately 15-20 percent of the global oilseed area, 6-7 percent of total vegetable oil production, and 9-10 percent of global consumption.
Domestically, oilseeds rank second in terms of area and production value in Indian agriculture, after food grains. Nine major oilseeds—groundnut, soybean, rapeseed-mustard, sunflower, sesame, safflower, niger, castor, and linseed—occupy 14.3 percent of the total cropped area, contribute 12-13 percent to dietary energy, and account for approximately 8 percent of agricultural exports. However, most oilseed cultivation, about 76 percent of the total area, is under rainfed conditions, making production vulnerable to climate variations and yield instability.
The production landscape is concentrated in a few key states. Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra together contribute over 77.68 percent of India's total oilseed production, reflecting regional dominance in specific crops, such as Rajasthan in mustard and Madhya Pradesh in soybean.

Palm Oil Production Initiative
Andhra Pradesh and Telangana are the major palm oil producing states, accounting for 98 percent of the total production. Karnataka, Kerala, Tamil Nadu, Chhattisgarh, Goa, Odisha, Gujarat, and Mizoram also have a significant area under palm oil cultivation. Recently, Arunachal Pradesh, Assam, Tripura, Manipur, and Nagaland have also started large-scale palm oil cultivation.

Mission Objectives
The mission aims to bring 6.5 lakh hectares under palm oil cultivation by 2025-26.
The target for crude palm oil (CPO) production is 11.20 lakh tonnes by 2025-26 and 28 lakh tonnes by 2029-30.
To maintain a consumption level of 19.00 kg/person/year by 2025-26 through increased consumer awareness.

National Edible Oil Mission - Oilseeds
India contributes approximately 5-6 percent to global oilseed production. In FY 2023-24, exports of oilcakes, oilseeds, and minor oils were approximately 5.44 million tonnes, valued at ₹29,587 crore. By May 2025, India's oilseed production reached a new high of 42.609 million tonnes (MT).
Nine major oilseed crops in India contribute 14.3 percent to the annual gross cropped area, 12-13 percent to dietary energy, and approximately 8 percent to agricultural exports. India ranks first in the production of castor, safflower, sesame, and niger, second in groundnut, third in rapeseed-mustard, fourth in linseed, and fifth in soybean. Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra are the major oilseed-producing states, contributing more than 77 percent to the country's total oilseed production.

NMEO-OS
To achieve self-reliance in edible oil production, the National Mission on Edible Oils – Oilseeds (NMEO-OS) was approved in 2024 for a seven-year period, from 2024-25 to 2030-31, with a financial outlay of ₹10,103 crore. NMEO-Oilseeds focuses on increasing the production of major primary oilseed crops such as rapeseed-mustard, groundnut, soybean, sunflower, sesame, safflower, niger, linseed, and castor, as well as enhancing collection and extraction efficiency from secondary sources such as cotton, coconut, rice bran, and tree-borne oilseeds (TBOs).
The mission specifically focuses on small and marginal farmers to enable them to improve their oilseed crop yields through various initiatives such as Frontline Demonstrations (FLDs) by ICAR/CGIAR, Cluster Frontline Demonstrations (CFLDs) by KVKs, and Block-Level Demonstrations (BLDs) by State Agriculture Departments, to create awareness among farmers about the latest high-yielding varieties and advanced technologies in oilseed cultivation. Mission Objectives
The mission aims to:
Utilize innovations: To bridge the yield gap by utilizing readily available and rapidly maturing innovations and technological breakthroughs.
Accelerate dissemination: To disseminate improved seed varieties and technologies in crop-specific clusters, involving cooperatives, FPOs, and the private sector.Promoting the rapid dissemination of technologies.
Targeting expansion: Encouraging the expansion of oilseed cultivation in fallow lands, particularly in the eastern states, and promoting intercropping through demonstrations.
Increasing the availability of improved seeds: Addressing gaps in the seed production and distribution system to ensure the availability and accessibility of quality seeds.
Enhancing market access: Connecting oilseed farmers and value chain partners with processors to improve their market access and ensure better returns.
Supporting the extraction and collection of secondary oilseeds: Promoting the production of secondary oilseeds and tree-borne oils through targeted interventions.

Mission Objectives
The mission aims to increase the area under cultivation from 29 million hectares (2022-23) to 33 million hectares, primary oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes, and yield from 1,353 kg/hectare (2022-23) to 2,112 kg/hectare by 2030-31.
In conjunction with NMEO-OP, this mission aims to increase domestic edible oil production to 25.45 million tonnes by 2030-31, which will meet approximately 72 percent of our estimated domestic requirement.
The mission aims to expand oilseed cultivation to an additional 4 million hectares by targeting fallow lands of rice and potato, promoting intercropping, and encouraging crop diversification.

Key Components of the Mission
Under NMEO-OS, more than 600 value chain clusters have been identified across the country, covering an area of ​​over 1 million hectares annually. These clusters are managed by value chain partners (VCPs), including Farmer Producer Organizations (FPOs) and cooperatives. Farmers in these clusters are receiving free high-quality seeds, training in Good Agricultural Practices (GAP), and advisory services on weather and pest management.
In addition, the mission provides support for setting up post-harvest infrastructure to enhance the efficiency of oilseed collection, oil extraction, and recovery.
To ensure the timely availability of quality seeds, the mission has launched an online 5-year rolling seed plan through the 'Seed Certification, Traceability and Holistic Inventory (SATHI)' portal, helping states establish advance linkages with seed producing agencies, including cooperatives, FPOs, and government or private seed corporations. 65 new seed centers and 50 seed storage units are being established in the public sector to improve seed production infrastructure.
Additionally, an Information, Education and Communication (IEC) campaign is being conducted to raise public awareness about recommended dietary guidelines for edible oils, thereby encouraging healthy consumption patterns across the country.

Implementation of the Mission
The NMEO-OS will be implemented in all states/union territories with funding in the ratio of 60:40 for general states, Delhi and Puducherry, and 90:10 for North-Eastern and hilly states, and 100 percent funding for Union Territories and Central Agencies. The NMEO-OS is implemented through a three-tier structure:

Other Initiatives to Make India Self-Reliant in Oilseed Production
The following steps have also been taken to make the country self-reliant in oilseed production:
The government has approved the continuation of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) till FY 2025-26 during the 15th Finance Commission period.
The Pradhan Mantri Fasal Bima Yojana (PMFBY) provides comprehensive crop insurance coverage, protecting farmers from crop loss risks from pre-sowing to post-harvest. This includes food grains, oilseeds, and commercial horticultural crops, which are specifically notified by the respective state government.
To discourage the import of cheap edible oils, the government has increased the effective customs duty on crude edible oils such as palm, sunflower, and soybean from 5.5 percent to 16.5 percent.
The duty on refined edible oils has been significantly increased, rising from 13.75 percent to 35.75 percent. These measures aim to provide a level playing field for domestic producers and simultaneously reduce dependence on imports.
To ensure better returns for farmers, the Minimum Support Price (MSP) for major oilseed crops such as soybean, mustard, groundnut, and other oilseeds has been substantially increased.

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