India targets 64% rise in oilseeds production to cut imports by 2032

The government aims to boost oilseeds production by 64% by 2032, cutting cooking oil imports from 57% to 28%. With limited scope for expanding farmland, the focus is on better seeds, inter-cropping, and using rice fallows. Supported by over Rs 21,000 crore, the plan includes value chain clusters and enhanced domestic palm oil production.

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The government aims to boost oilseeds production by 64%, increasing it from the current 12.3 million tonnes (MT) to 20.18 MT per year by 2032. This move is intended to reduce the growing import bill for cooking oils, which, along with crude petroleum imports, is adding strain to the country’s current account. India imported US$ 20 billion worth of edible oils in 2022-23, and imports have continued due to low tariffs.

The new policy focuses on boosting the production of mustard, soybean, and groundnut through improved seed varieties developed by both the private and public sectors, better farming practices, and the use of rice fallows in eastern states like Odisha, West Bengal, and Bihar. The goal is to reduce cooking oil imports from 57% of total consumption to 28%. The National Mission on Edible Oil, with an allocation of Rs10,102 crore, also aims to improve the extraction efficiency of secondary oilseeds like cottonseed and rice bran.

India currently consumes 29.2 MT of cooking oils annually, with domestic production contributing 12.69 MT, mainly from mustard, soybean, and groundnut. Of the 16.5 MT of imported oils, 60% is palm oil, while soybean and sunflower oils make up 20% each. The policy acknowledges that a significant increase in the area under oilseed cultivation is unlikely, so the focus will be on increasing yields through the introduction of high-yielding seed varieties, inter-cropping, and cultivation in rice and potato fallow areas.

Oilseeds output is projected to rise from 39.2 MT to 69.7 MT by 2032, with the area under cultivation increasing from 29 million hectares (MH) to 33 MH. Around 27% of the increase will come from area expansion, while the rest will result from new varietal development. The government has identified 1.12 MH of rice fallow land for oilseeds cultivation across states like Chhattisgarh and Maharashtra.

Over 600 value chain clusters will be developed in 347 districts, covering more than one million hectares annually. These clusters will be managed by entities such as Farmer Producer Organizations (FPOs), cooperatives, and private or public bodies. Farmers will receive financial support for breeder seed production, access to quality seeds, training on Good Agricultural Practices (GAP), and advisory services for weather and pest management.

In 2021, the National Mission on Edible Oil Palm was launched with a Rs 11,040 crore outlay to increase palm oil production from 0.5 MT to 4 MT by 2032. Additionally, a dynamic import duty structure has been proposed, taking into account the Minimum Support Price (MSP) for oilseeds, as well as domestic and international market prices. The government has recently adjusted import tariffs to encourage domestic production.