The Union Cabinet on Thursday approved the National Mission on Edible Oil (Oilseeds) with an estimated cost of ₹10,103 crore to be implemented over next six years with a target to increase the production of oilseed crops by 79 per cent to 69.7 million tonnes (mt) by 2030-31 from about 39 mt currently.

Together with NMEO-OP (Oil Palm), the Mission targets to increase domestic edible oil production to 25.45 mt by 2030-31 meeting around 72 per cent of the projected domestic requirement from 44 per cent at present.

Briefing media after the Cabinet approval, Information and Broadcasting Minister Ashwini Vaishnaw said the scheme is practical, and has the potential to make the country move towards self-sufficiency in edible oils. He said the focus on domestic oilseeds crops such as groundnut, mustard and soyabean will help the country to reduce dependency on edible oil import.

Customs duty hike

According to the new Mission, the government targets raising edible oil production from domestically grown oilseeds to 20.2 mt by 2031 from current 12.7 mt. It also has fixed a target to increase area under oilseeds crops to 33 million hectares (mh) from 29 mh and also the average yield to 2.22 tonnes/hectare from 1.35 tonnes/hectare, he said.

The Mission also seeks to expand oilseed cultivation by an additional 40 lakh hectares by targeting rice and potato fallow lands, promoting intercropping and promoting crop diversification.

Last month, the government increased the duty on crude palm, soyabean and sunflower oil to 20 per cent from ‘nil’ and the levy on refined palm, soyabean and sunflower oils to 32.5 per cent from 12.5 per cent. After the revision, the imported crude oils will be levied at 27.5 per cent (including cess) and refined varieties at 35.75 per cent (including cess).

Import dependency

Import dependency on edible oils has come down to about 56 per cent in 2022-23 oil year (November-October) from a high of over 63 per cent in 2015-16. But the real challenge is further reducing it by raising production of all types of domestic sources, despite limitation of area.

India’s import bill of edible oils dipped to ₹1.38 lakh crore in 2022-23 oil year from a record ₹1.56 lakh crore in 2021-22. The import was estimated at ₹1.17 lakh crore in 2020-21.

According to an official statement issued after the Cabinet approved the Oilseeds Mission, there will be focus on enhancing production of primary oilseed crops – Mustard, Groundnut, Soybean, Sunflower and Sesamum. Besides, there will be efforts to increasing collection and extraction efficiency from secondary sources like Cottonseed, Rice Bran and Tree Borne Oils.

This will be achieved by promoting adoption of high-yielding high oil content seed varieties, extending cultivation into rice fallow areas, and promoting intercropping. The Mission will harness ongoing development of high-quality seeds by using cutting-edge global technologies such as genome editing.

To ensure the timely availability of quality seeds, the Mission will introduce an online 5-year rolling seed plan through the ‘Seed Authentication, Traceability & Holistic Inventory (SATHI)’ portal, enabling States to establish advance tie-ups with seed-producing agencies, including cooperatives, Farmer Producer Organisations (FPOs), and government or private seed corporations, the statement said. It further added that 65 new seed hubs and 50 seed storage units will be set up in public sector to improve the seed production infrastructure.

Additionally, over 600 value chain clusters will be developed across 347 unique districts, covering more than 1 mh annually. These clusters will be managed by value chain partners such as FPOs, cooperatives, and public or private entities. Farmers in these clusters will have access to high-quality seeds, training on Good Agricultural Practices (GAP) and advisory services on weather and pest management.

Support will be extended to FPOs, cooperatives, and industry players to establish or upgrade post-harvest units, enhancing recovery from sources such as cottonseed, rice bran, corn oil and Tree-Borne Oils (TBOs).