Edible Oil Self-Sufficiency Remains Elusive

14-Jun-2025 12:02 PM

India remains the world’s largest importer of edible oils, bringing in an average of 145–150 lakh tonnes annually, while domestic production remains significantly lower. As a result, the country continues to rely heavily on imports, meeting 55–60 percent of its total edible oil demand through foreign sources. In recent years, imports have even touched 150–160 lakh tonnes, peaking at a record 164 lakh tonnes two years ago. Bridging this wide gap between production and demand appears unlikely in the near future.

In October 2024, the central government launched the National Mission on Edible Oil-Oilseeds with an allocation of ₹10,103 crore. The goal of the mission is to boost annual oilseed production to 697 lakh tonnes by 2030–31 and increase domestic edible oil production to 254.50 lakh tonnes, aiming to meet 72 percent of the estimated 353.50 lakh tonnes of total domestic requirement by then. However, this target is considered highly ambitious and will require extensive, sustained, and well-coordinated efforts. Numerous challenges are expected in this path, and it remains to be seen how effectively these can be overcome.

Domestic demand for edible oils continues to rise steadily, making it difficult to manage or reduce consumption levels. To meet this growing demand, imports are likely to increase further. In August 2021, the government also launched the National Mission on Edible Oil – Oil Palm, targeting an increase in crude palm oil production to 11.20 lakh tonnes by 2025–26. Under this initiative, 6.64 lakh hectares were to be brought under new oil palm cultivation. However, progress has been slow—by the financial year 2024–25, only 1.89 lakh hectares had been covered.

Meanwhile, production of mustard declined in the Rabi season of 2024–25. Preparations are now underway for sowing Kharif oilseed crops such as soybean, groundnut, sesame, sunflower, and castor. However, even before this sowing season, the government reduced the basic import duty on crude edible oils from 20 percent to 10 percent. Such policy decisions create uncertainty among domestic farmers and may discourage them from investing in oilseed cultivation.

Although the government has raised the minimum support price (MSP) for oilseeds, it remains uncertain whether this measure alone can sufficiently motivate farmers to scale up production.