India: Government pushes for edible oil self-reliance under NMEO; oil palm coverage reaches 6.20 lakh hectares

India’s efforts to reduce dependence on edible oil imports have gained momentum under the National Mission on Edible Oils (NMEO), with the Centre reporting notable progress in both oil palm expansion and oilseed productivity.

According to an August 2024 NITI Aayog report, India now ranks first globally in the production of rice bran oil, castor seed, safflower, sesame and niger. However, domestic output continues to meet only 44% of the country’s edible oil requirement.

The NMEO–Oil Palm (OP), launched in 2021, aims to bring 6.5 lakh hectares under oil palm by 2025–26. By November 2025, 2.50 lakh hectares had been added, taking the total cultivated area to 6.20 lakh hectares nationwide.

Crude Palm Oil (CPO) production has increased from 1.91 lakh tonnes in 2014–15 to 3.80 lakh tonnes in 2024–25. The scheme provides farmers with a Viability Price (VP) for Fresh Fruit Bunches (FFBs), insulating them from international CPO price fluctuations.

A financial outlay of Rs 11,040 crore has been earmarked for the mission, with major focus on seed gardens, nurseries, high-yield planting material, drip irrigation and intercropping during the gestation period.

The second component, NMEO–Oilseeds (OS), approved in 2024 for a seven-year period, targets raising primary oilseed output from 39 MT in 2022–23 to 69.7 MT by 2030–31. The mission seeks to expand total oilseed acreage to 33 million hectares, improve yield and strengthen seed systems through cluster-based interventions.

Over 600 value-chain clusters have been created, covering more than 10 lakh hectares annually. Farmers are being given free high-quality seeds, training in good agricultural practices and support for post-harvest infrastructure.

The government plans to expand oilseed cultivation by an additional 40 lakh hectares, mainly through fallow land utilisation and intercropping. Together with NMEO-OP, domestic edible oil production is projected to reach 25.45 million tonnes by 2030–31, meeting around 72% of projected domestic demand.

India’s edible oil consumption has risen sharply, with per capita intake increasing by 83.68% in rural and 48.74% in urban areas between 2004–05 and 2022–23. Despite production reaching 12.18 MT in 2023–24, the country still imported 15.66 MT of edible oils in the same year.

Import dependence has, however, declined from 63.2% in 2015–16 to 56.25% in 2023–24, driven by domestic interventions and higher MSPs for major oilseeds. The government also raised effective customs duties on crude and refined edible oils to protect local producers.

ICAR is developing high-yielding, climate-resilient varieties through coordinated research projects. Between 2014 and 2025, 432 oilseed varieties and hybrids have been released. The SATHI seed traceability portal and the digital Krishi Mapper platform are being used to streamline seed planning and mission monitoring.

Tags: safflower, National Mission on Edible Oils, rice bran oil, castor seed, Production, India, yield, imports, edible oil, sesame, Niger