Edible oil self-sufficiency: A distant reality for India?
India launched the National Mission on Edible Oil (Oilseeds) in October 2024 with ₹10,103 crore to boost oilseed output to 69.7 mt by 2030-31. Alongside NMEO-OP, it aims to raise domestic edible oil production to 25.45 mt. However, progress has been slow, and crude oil imports dropped as refined oil’s share rose to 93% by May 2025.
The Indian government launched the National Mission on Edible Oil (Oilseeds) in October 2024, allocating an estimated ₹10,103 crore. This initiative aims to boost oilseed crop production to 69.7 million tonnes (mt) by 2030-31. Alongside the National Mission on Edible Oil – Oil Palm (NMEO-OP), the Centre targets increasing domestic edible oil production to 25.45 mt by 2030-31, intending to meet approximately 72 per cent of the projected domestic requirement of 35.35 mt.
The NMEO-OP, launched in August 2021, sought to raise crude palm oil production to 1.12 mt by 2025-26 by expanding cultivation to an additional 6.64 lakh hectares (lh). However, by FY 2024-25, only 1.89 lh of additional area had been covered. Furthermore, in the first season after the NMEO (Oilseeds) rollout, both mustard area and production declined during Rabi 2024-25.
As farmers prepare for Kharif oilseed sowing (soybean, groundnut, and sunflower), the government signalled its priorities by reducing the import duty on crude palm oil from 20 per cent to 10 per cent, effective May 31. The rationale given for this reduction was to widen the price gap between crude and refined oil, preventing the dominance of finished products. However, recent data indicates that the share of crude oils in India’s edible oil import basket has fallen to 7 per cent in May 2025 from 18 per cent in November 2024, while refined oils have increased to 93 per cent from 82 per cent in the same period.
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Source : The Hindu Business line
