INDIA'S OILSEED REVOLUTION: A DECADE OF STRIDES TOWARDS SELF-RELIANCE AND NUTRITIONAL SECURITY

Article:

·         Purna Chandra Kishan, Joint Secretary, Dept of Agriculture and Farmers Welfare

·         Rishi Kant, Additional Economic Adviser, Dept of Agriculture and Farmers Welfare

Over the past decade, India has embarked on a transformative journey in its agricultural sector, with pronounced focus on oilseed.Between 2014-15 to 2024-25, oilseed production soared by 55%, from 275 lakh tonnes to 426 lakh tonnes, with a robust compound annual growth rate (CAGR) of over 5%. The area under oilseed cultivation expanded by 18%, from 25.60 million hectares to 30.27 million hectares, while productivity surged 31%, from 1,075 kg/ha to 1,408 kg/ha. Edible oil production itself climbed 44%, from 87 lakh tonnes to 123lakh tonnes, marking a significant leap toward food security and economic self-sufficiency.  

Table: India’s Oilseed Sector important parameters from 2014–2024

Source: 3^rd Advance Estimate, DA&FW

A Decade of Agricultural Breakthroughs:

Since 2014–15, India’s oilseed sector has experienced a remarkable transformation across all key parameters. Production surged by 55%, rising from 275.1 lakh tonnes to 426.1 lakh tonnes, driven by the widespread adoption of high-yielding seed varieties, improved irrigation facilities, and sustained policy support from the government, consequently leading to increase in the edible oil production by 44%, from 87 lakh tonnes to 125lakh tonnes. The cultivated area expanded by 18%, from 256 lakh hectares to 302.7 lakh hectares, reflecting growing farmer confidence and strategic efforts to bring fallow and underutilized land into oilseed cultivation. Productivity improvements were even more striking, with a 31% increase from 1,075 kg/ha to 1,408 kg/ha, driven by technological advancements and better farming practices. Key oilseed crops like rapeseed-mustard, soybean, and groundnut led the charge, with secondary sources like coconut, cottonseed, and rice bran bolstering output.

Empowering Farmers: The Minimum Support Price (MSP) and Procurement Revolution

A cornerstone of this agricultural transformation has been the substantial enhancement of the Minimum Support Price (MSP) for oilseeds, ensuring farmers receive remunerative prices for their produce. The MSP for oilseeds saw dramatic hikes, with niger seed jumping 142.14% (from Rs 3,600/quintal to Rs 8,717/quintal), sesamum rising 101.46% (to Rs 9,267/quintal), and others like rapeseed-mustard (91.94%) and groundnut (69.58%) over 2014-15, ensuring farmers’ incomes grew substantially, making oilseed cultivation profitable.

Source: DA&FW

This tremendous rise in MSPs was complemented by a significant scaling up of government procurement operations. In 2014-15, government procurement of oilseeds was minimal, at just over 4,200 metric tonnes and limited to a one or two crops.By 2024–25, procurement has surged to over 41.8 lakh metric tonnes, covering key crops like groundnut (17.7 lakh MT), soybean (20lakh MT), and rapeseed/mustard (4 lakh MT). This marked increase, particularly through schemes like PM-AASHA, signifies the operationalization of MSP interventions on a meaningful scale, ensuring income security for farmers amidst market volatility.

Complementing the growth in MSP and procurement support and to accelerate self-reliance in edible oils, the government launched two key missions: the National Mission on Edible Oils – Oilseeds (2024) and the National Mission on Edible Oils – Oil Palm (2021). With a budget of Rs 10,103 crore, NMEO-Oilseeds aims to double production to 69.7 million tonnes by 2030-31, expanding cultivation into 40 lakh hectares of fallow land and promoting high-yield seed varieties and cluster-based models. Meanwhile, NMEO-OP, backed by Rs 11,040 crore, focuses on expanding oil palm cultivation, especially in the North East and Andaman regions, leveraging its high productivity and income potential to enhance farmer earnings and reduce import dependence.

Addressing Consumption, Imports, and Health

While domestic production has grown impressively, rising incomes, urbanization, and a shift toward processed and packaged foods have driven India’s edible oil consumption to 27.8 million tonnes in 2023–24, with per capita intake reaching 19.3 kg—nearly 60% higher than the Indian Council of Medical Research’s recommended level of 12 kg.This a fivefold increase in the demand since the 1950s, has continued our dependency on the imported oils despite archiving remarkable growth in production of oil seeds in the country.  Besides, the high consumption of edible oils also poses undesirable health consequences, contributing to rising obesity rates and non-communicable diseases (NCDs). NCDs, partly driven by excessive dietary fat, are projected to cost India Rs 4.58 trillion by 2030. Recognizing this, the Prime Minister has called for a 10% reduction in oil consumption, a bold step aimed at curbing obesity, diabetes, and cardiovascular diseases. Beyond health, it can help balance domestic supply-demand dynamics and reduce import pressure.

Strengthening Self-Reliance: Economic and Environmental Gains

India’s heavy dependence on imported edible oils—particularly palm and soybean—posed a major economic vulnerability. By 2024–25, a combination of targeted government support and enabling tariff measures has helped level the playing field, making domestic oils more competitive. This shift has encouraged the cultivation of mustard, groundnut, and sesame, which are well-suited to India’s diverse agro-climatic zones. Additionally, the promotion of healthier oil blends, such as rice bran and cottonseed, taps into India’s abundant rice and cotton output—a strategy that saw limited attention a decade ago.

These efforts not only strive towards enhancing economic resilience by reducing import dependency and conserving foreign exchange reserves, but also generate environmental co-benefits. The emphasis on cultivating oilseeds in fallow lands, combined with smallholder-driven oil palm expansion, minimizes ecological disruption and helps maintain biodiversity. Moreover, such land-use practices can serve as carbon sinks, aligning with broader climate goals. Promoting indigenous oil blends also offers consumers healthier alternatives while reinforcing sustainable agricultural practices rooted in India’s natural strengths.

A Virtuous Cycle Forged from a Decade of Progress

India's oilseed revolution, deeply rooted in a decade of remarkable growth and strategic interventions, stands as a testament to the nation's agricultural resilience and policy commitment. By amplifying domestic production through focused missions like NMEO-Oilseeds and NMEO-OP, embracing sustainable agricultural practices, and fostering mindful consumption, India is not only aiming to reduce its substantial import burden but is also forging a path towards a healthier, more self-reliant, and economically robust future.

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ABOUT THE AUTHORS:

·         Shri Purna Chandra Kishan, a 2005 batch officer of the Indian Administrative Service (IAS) from the Rajasthan cadre, is currently serving as Joint Secretary in the Department of Agriculture & Farmers Welfare, Government of India. In this capacity, he is responsible for overseeing the Oilseeds and Marketing Division.

·         Shri Rishi Kant, a 2012 batch officer of the Indian Economic Service (IES), is posted as Additional Economic Adviser in the department of Agriculture and Farmers welfare, where he is looking after Oilseeds Division and Agriculture and Economic Research unit.