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iPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
PATHWAYS & STRATEGY FOR
ACCELERATING GROWTH IN
EDIBLE OIL TOWARDS GOAL
OF ATMANIRBHARTA NITI Aayog (2024). Pathways and Strategy for Accelerating Growth in Edible Oil towards
Goal of Atmanirbharta
Copyright@ NITI Aayog, 2024
ISBN No.: 978-81-967-183-0-5
AUTHORS:
Dr. Neelam Patel (Programme Director), NITI Aayog
Dr. Harshika Choudhary (Consultant-I), NITI Aayog
Shri Sambuddha Goswami (Consultant-II), NITI Aayog Pathways and Strategy for
Accelerating Growth in

Edible Oil towards Goal
of Atmanirbharta
2024 vPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta vPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta viiPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta viiPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta ixPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta ixPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta xiPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta xiiiPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta xiiiPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta xivPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta xiv Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta xvPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
TABLE OF CONTENTS iPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
TABLE OF CONTENTS
Executive Summary��01
Chapter-I Introduction........................................................................................................................23
1.1 Background 23
1.2 Rationale for Atmanirbharta in Edible Oil 24
1.2.1 Minimizing Import Dependency 25
1.2.2 Achieving Nutritional Security 25
1.2.3 Enhancing Economic Development 26
Chapter-II Overview of Global Edible Oil Sector�� 29
2.1 Global Area, Production, and Yield Trends of Oilseeds 29
2.2 Growth Trends in Oilseeds and Vegetable Oils Production 31
2.3 Global Oilseed and Edible Vegetable Oil Scenario 31
2.4 Global Vegetable Oil Consumption: Rising Demand and Shifting Preferences 33
2.5 India: A Major Player in the Global Edible Oil Market 33
2.6 Decadal Yield Comparison of Major Oilseed Producers 35
Chapter-III Overview of India’s Edible Oil Sector ��39
3.1 Oilseed Area, Production and Yield: State-Level Dynamics in India 39
3.1.1 Oilseed Cultivation: Overall 39
3.1.2 Oilseed Cultivation: Kharif Season 40
3.1.3 Oilseed Cultivation: Rabi Season 41
3.2 Analysing Growth Trends and Instability in Edible Oil Crops Production 44
3.2.1 Trend Growth Rate Analysis 44
3.3 Instability Analysis of Edible Oils 49
3.4 Palm cultivation in India 51
3.5 Edible Oils Trade Dynamics: Import and Export 52
3.5.1 Imports 54
3.5.2 Exports 57 iiPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table of Contents
Chapter-IV Demand and Supply of major edible oils��61
4.1. Rising Demand for Edible Oils in India 61
4.1.1 Change in Monthly Per Capita Consumption Expenditure Pattern:
1999-2000 to 2022-2363
4.2 Edible Oil Demand Projections 65
4.2.1. Sta
tic / Household Approach 65
4.2.2. Normative Approach 65
4.2.3. Be
haviouristic Approach 67
4.3. Edible Oil Supply Projections to 2030 and 2047 75
4.3.1. Nati
onal Level Projected Production of Nine Primary Oilseeds (based on
aggregated data) by 2030 and 204776
4.3.2. National Level Projected Production of Nine Primary Oilseeds individually

(based on Crop-wise data) by 2030 and 204777
4.3.3. National Level Projected Production of Five Secondary Oils individually (based

on crop-wise data) by 2030 and 204781
4.4 Edible Oils Demand-Supply Gap Analysis by 2030 and 2047 83
Chapter-V Strategies and Roadmap to achieve self sufficiency for Atmanirbharta��89
5.1. Crop Diversification and Retention in Major Oilseed States: Markov Chain Model 92
5.2 Crop Retention Rates 92
5.2.1 Enhancing India’s Edible Oil Production Through Strategic Retention
of Oilseed Crops94
5.3 Quadrant Strategy for Diversification and Accelerated Growth 95
5.3.1 State-wise Quadrant Strategy: Soybean 97
5.4 Rabi rice fallow areas: Horizontal expansion of primary Oilseeds 102
5.5 Technological Interventions: Vertical Expansion of Primary Oilseeds 105
5.5.1 K
ey Hotspot Areas Requiring Urgent Technological Integration107
5.5.2 Stre
ngthening the Foundation: Seeds and Processing Infrastructure 108
5.6 The Potential of Secondary Edible Oils 109
5.6.1.
Prioritizing Palm Oil: A Strategic Approach 109
5.7 Potential Increase in Edible Oil Production through Strategic Interventions 111
Chapter-VI Recommendations and Way forward�� 117
6.1 Focus on Area Retention of Oilseeds and diversification 117
6.2 Seed Traceability and Quality Assurance 118
6.3 Adoption of Improved and Advanced Production Technologies 119
6.4 Value Addition through Processing and Refining 119
6.5 Effective Marketing and Robust Market Linkages 119
6.6 Encouraging Public-Private Partnerships 120
6.7 A Dynamic Trade Policy for Balanced Growth 120
6.8 Broadening the Scope of the National Mission on Edible Oils 120
6.9 Strategies for Consumer Preference and Industry 121
6.10 Data-Driven Transformation and Research Investment 121 iiiPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table 2.1 CAGR for Oilseeds and Vegetable Oils (1961- 2022) 31
Table 2.2 India’s position in the global edible oil production market (2022-23) 34
Table 3.1 Top three states in Area and Production of edible oil crops (2017-2022) 43
Table 3.2 Trend growth rate of area, production and productivity of edible/non-edible
oils in India (1980- 2022) 45
Table 3.3 Instability in area, production and yield of edible oil crops in different
periods between 1980-81 and 2022-23 at all India levels (%) 50
Table 3.4 State-wise cultivated area under oil palm cultivation in India 51
Table 3.5 State-wise production of Crude palm oil production 52
Table 3.6 Total Export of Oilseeds (2019-20 to 2021-22) 57
Table 3.7 Total Export of Vegetable Oils (2019-20 to 2021-22) 58
Table 3.8 Export of Oil meals (2019-20 to 2021-22) 58
Table 4.1 Per capita consumption of different edible oils: Rural and Urban 62
Table 4.2 Trend in level of average monthly per capita expenditure (1999-2022): Rural and
Urban 64
Table 4.3 Trend in share of consumption of cereals and food items (1999-2022): Rural and
Urban 64
Table 4.4 Trend in the level of average MPCE on Edible oils (1999-2022): Rural and Urban 65
Table 4.5 Dietary Requirement of Edible Oil 66
Table 4.6 Projected Population by Gender, Age Group and Activity 66
Table 4.7 Projected Demand for Each Group and Total Demand (2021-2047, in MT) 67
Table 4.8 Food Expenditure Demand Elasticities: Second Budgeting Stage 70
Table 4.9 Projected Edible Oils Supply at the National Level by 2030-31 and 2047-48 84
Table 4.10 Projected Edible Oils Demand-Supply Gap at National Level by 2030 and 2047 85
Table 5.1 Quadrant strategy for horizontal and vertical expansion 91
Table 5.2 Retention Rate of Major Oilseed Crops by Key States 93
Table 5.3 Oilseeds: Potential Production (MT) by Strategically Retention of Oilseed
Crops and Gap with Current Production 95
Table 5.4 Area and Yield of Major Edible Oil Crops in India (2017-2022) 96
Table 5.5 Yield difference between the highest yielding Indian state and highest
among world producer 96
Table 5.6 Area and Yield of Soybean in Indian States 97
Table 5.7 Tailored Interventions for State-Specific Growth: A Multi-Crop Strategy Matrix 101
Table 5.8 Potential crops suitable for rice fallow states 103
Table 5.9 Potential oilseed production from utilized rice fallow areas in selected states 104
Table 5.10 Oilseeds Potential Yield & Production through Improved Technology (IT)
Adoption and Gap with Current Production 106
Table 5.11 Certified/quality SRR of oilseed crops (in %) from 2013-14 to 2021-22 108
LIST OF TABLES ivPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta iv
Table 5.12 Present status of Indian Vegetable oil industry 108
Table 5.13 Potential Increase in Edible Oil Production through Strategic Interventions (MT) 112
Table 5.14 Projected Edible Oils Demand-Supply Gap at National Level by 2030 and 2047
(in MT) adding Potential Increase through Strategic Interventions: Household
Approach, Normative Approach, and Behaviouristic Approach (Scenario- I & II ) 113
Table 5.15 Required CAGR for Edible Oil Self-Sufficiency: Considering BAU & Strategic
Interventions Scenarios across Normative, Household & Behaviouristic
Approaches (Scenario- I & II) 114
Table 6.1 Comparison of Genetic Potential of Newly Bred Indian Oilseed Varieties with the
Country with Highest Yield (t/ha) Globally 119 vPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta v
LIST OF FIGURES
Figure 2.1 Global production of vegetable oils (1961- 2022)29
Figure 2.2 Global area, production & yield of oilseeds (1961- 2022)30
Figure 2.3 World area, production and productivity of major edible vegetable
oil crops (2017-18 to 2022-23)32
Figure 2.4 Consumption of vegetable oils worldwide from 2013-14 to 2023-2024,
by oil type (in MT)33
Figure 2.5 Yield comparison across highest producer countries (1999-2022 unit: t/ha)36
Figure 3.1 Area and Production of oilseeds in India (2017-2022)40
Figure 3.2 Crude Palm oil production (2010-11 to 2021-22: lakh tonnes)51
Figure 3.3 Share of imports & self-sufficiency over the years (1986- 2022 unit: %)53
Figure 3.4 Production, Consumption & Imports of Edible oils in India 54
Figure 3.5 Edible Oil Availability and Import Share over 2016-17 to 2022-23 54
Figure 3.6 Major Edible Oil Imported by India (2016-17 to 2022-23)55
Figure 3.7 Import duty on edible oils57
Figure 4.1 Per capita consumption of edible oil in kg/year: Rural and Urban
(1993-2011, NSSO Rounds)63
Figure 4.3 Total normative demand for edible oils (2021-2047, in MT)67
Figure 4.4 Predicted Cereals and pulses expenditure weights with total
expenditure on food71
Figure 4.5 Predicted Egg, Fish, and meat expenditure weights with total
expenditure on food71
Figure 4.6 Predicted Milk and milk products expenditure weights with total
expenditure on food72
Figure 4.7 Predicted Vegetables and Fruits expenditure weights with total
expenditure on food72
Figure 4.8 Predicted Oils and fats expenditure weights with total expenditure on food73
Figure 4.9 Predicted others expenditure weights with total expenditure on food73
Figure 4.10 Scenario-II: Total Demand for Edible Oil (MT)75
Figure 4.11 Scenario-I: Total Demand for Edible Oil (MT)75
Figure 4.12 National Forecasted Primary Oilseeds Production (Based on Aggregate
Level Data of Nine Oilseeds 1967- 2045)76
Figure 4.13 Forecasted Primary Oilseeds Production by each Oil Seeds77
Figure 4.14 National Forecasted Primary Oilseed Production (1990-2047)80
Figure 4.15 National Forecasted Secondary Oils Production by each Oil81
Figure 4.16 National Forecasted Individual Secondary Oils Production83
Figure 5.1 Strategies devised for accelerating growth in edible oil 89
Figure 5.2 Technological Interventions105
Figure 5.3 Potential Area (ICAR- IIOPR Reassessment committee, 2020)
and achieved area (up to March 2021) of palm in India 110 viPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta vi
LIST OF MAPS
Map 3.1 Total area, production and productivity under oilseed crops (2017-2022)41
Map 3.2 Total area, production and productivity under Kharif and Rabi oilseeds
crops (2017-2022) 42
Map 5.1 Soybean: State-wise Cluster98
Map 5.2 State-wise Clusters for Primary and Secondary Edible Oil Crops100
Map 5.3 Key Hotspot Areas Requiring Urgent Technological Integration107
Map 5.4 District wise Highly Suitable Areas from Wastelands for Palm Oil Cultivation111 viiPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta vii
LIST OF ANNEXURES
ANNEXURE-I Trends of MSP in oilseeds (`per quintal) 125
ANNEXURE-II Projected Population - All India (2021-2047) 126
ANNEXURE-III Key Hotspot Areas Requiring Urgent Technological Integration 127
ANNEXURE-IV Insights into Oilseed Cultivation: A Survey of Indian Farmers 129
ANNEXURE-V State-wise Quadrant Strategy for Primary and Secondary Edible Oil Crops 141
ANNEXURE-VI Targeted Crop Strategies with Institutional Support and Technologies 145
ANNEXURE-VII Oilseed Self-Sufficiency: Lessons from the Past Strategies 157 ixPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta ixPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
ABBREVIATIONS
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
ABBREVIATIONS xiPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
AICORPO All India Coordinated Research Project on Oilseeds
AIDS Almost Ideal Demand System
ADF Augmented Dickey-Fuller Test
ACF Autocorrelation Function
ARIMA Autoregressive Integrated Moving Averages
AAGR Average Annual Growth Rate
BIC Bayesian Information Criterion
BAU Business as Usual
CCPA Central Consumer Protection Authority
CSS Centrally Sponsored Scheme
CMIE Centre for Monitoring Indian Economy
CACP Commission for Agricultural Costs & Prices
CAGR Compound Annual Growth Rates
CPI Consumer Price Index
CPO Crude Palm Oil
CDVI Cuddy-Della Valle Instability
DA&FW Department of Agriculture & Farmers Welfare
ECA The Essential Commodities Act
ELM Extreme Learning Machines
FAOSTAT Food and Agriculture Organization Statistic
FSSAI Food Safety and Standards Authority of India
FFBs Fresh fruit branches
GRNN Generalized Regression Neural Network
GMGR Geometric Mean Growth Rate
GDP Gross Domestic Product
HCE Household Consumption Expenditure
ABBREVIATIONS xiiPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta xii
ICMR Indian Council of Medical Research
IIOPR Indian Institute of Oil Palm Research
IMSCS Indian Minimum Seed Certification Standards
ISOPOM Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize
IODP Intensive Oilseeds Development Programme
ISTA
International Seed Testing Association kg/person/year- Kilogram/
person/ year
kg/ ha Kilogram/hectare
KPSS Kwiatkowski-Phillips-Schmidt-Shin test
Lha Lakh hectares
MKO Mango Kernel Oil
MAE Mean Absolute Error
MAPE Mean Absolute Percentage Error
Mha Million hectares
MT Million tons
MSP Minimum Support Price
MoAF&W Ministry of Agriculture & Farmers Welfare
MoSPI, GoI
Ministry of Statistics and Programme Implementation,
Government of India
MPCE Monthly Per Capita Consumption Expenditure
NAAS National Academy of Agricultural Sciences
NFSM National Food Security Mission
NIN National Institute of Nutrition
NMEO-OP National Mission on Edible Oil-Oil Palm
NMOOP National Mission on Oilseeds and Oil Palm
NOPD National Oilseeds Development Project
NSC National Seed Corporation
NNI Net National Income
Oil-SEA,
The Solvent Extractors’ Association of India- International ICRBO
Conference on Rice Bran
OPAE Oil Palm Area Expansion
OPVOpen Pollinated Varieties
OECD-FAO
Organization for Economic Co-operation and Development- Food and
Agricultural Organization
POME Palm Oil Mill Effluents xiiiPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta xiii
PACF Partial Autocorrelation Function
PP Phillips Peron test
PUFA Polyunsaturated Fatty Acids
PFCE Private Final Consumption Expenditure
PPP Public-Private Partnerships
QUAIDS Quadratic Almost Ideal Demand System
RDA Recommended Dietary Allowance
RBD Refined, Bleached, and Deodorized
RMSE Root Mean Squared Error
SATHI Seed Traceability, Authentication and Holistic Inventory
SMR Seed multiplication ratio
SOPA The Soybean Processors Association of India
SRR Seed Replacement Rate
TMO Technology Mission on Oilseeds
TMM Act The Trade and Merchandise Marks Act, 2017
t/ha Tonnes/ hectare
TPM Transitional Probability Matrix
TBO Tree Based Oilseeds
USDA United States Department of Agriculture
WSO Watermelon Seed Oil
WHO World Health Organization
YOY Year-on-Year iPathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
EXECUTIVE SUMMARY 3Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta 3
Executive Summary
The COVID-19 pandemic has been detrimental to globalisation and sparked a demand for
protectionism, aligning with India's national strategy of 'Atmanirbharta' and 'vocal for local'.
Oilseed crops are the second most important determinant of the agricultural economy, next
only to cereals within the segment of field crops. The self-sufficiency in oilseeds achieved
during the "Yellow Revolution" in the early 1990s was short-lived and could not be maintained
for long. Over the past decades, per capita consumption of edible oil has witnessed a
dramatic rise, reaching 19.7 kilograms per year (kg/year). This surge has outpaced domestic
production and has translated into a heavy reliance on imports to meet domestic demand
and industrial needs. Consequently, the import volume of edible oils reached 16.5 MT in
2022-23, representing a rise of about 67%, highlighting a growing dependence on external
sources. India currently fulfils only 40-45% of its edible oil requirements through domestic
production, presenting a significant challenge to the nation's ‘self-sufficiency’ goal.
India's heavy reliance on edible oil imports, currently accounting for 55-60% of its
needs, presents a substantial challenge to its food security and economic stability. Given
the multifaceted benefits of achieving “Atmanirbharta” (self-sufficiency) in this sector, a
multi-pronged approach is imperative. To address this critical issue, this study outlines a
comprehensive roadmap focusing on:
i. To analyse the performance of the edible oil sector in India by examining trends in area,
production and yield of major oilseeds in India and the world.
ii. To examine the trends in the import and export of the edible oil sector.
iii. To discuss the gap between the country's demand and supply of major edible oils.
iv. To assess the past strategies to achieve self-reliance in the edible oil economy.
v. To develop new strategies and suggest a roadmap to achieve Atmanirbharta in edible oils.
This report comprehensively explores India's edible oil sector, detailing its current state
and future potential across six chapters, and charts a path toward self-sufficiency. The
introductory chapter sets the rationale for achieving self-reliance in edible oils, highlighting
its significance for national food security and economic stability. Chapter-II highlights
the perspective to include the global context, analysing trends in production, yield, and
consumption of edible oils, underlining India's significant role in the dynamic global market.
EXECUTIVE SUMMARY 4Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Chapter-III explores a detailed analysis of the domestic edible oil sector. It examines
state-wise dynamics, growth trends, factors contributing to production instability, and the
intricacies of India's trade patterns in edible oils.
Chapter-IV comprehensively analyses trends for major edible oils in India, alongside
detailed demand and supply projections for 2030 and 2047. The report employs three
distinct approaches for demand forecasting to gain a multifaceted understanding of future
edible oil needs. The Static/Household Approach utilizes population projections and baseline
per capita consumption data, assuming a short-term static pattern in consumption behaviour.
In contrast, the Normative Approach considers the recommended healthy intake levels
established by the ICMR-National Institute of Nutrition (ICMR-NIN). Finally, the Behaviouristic
Approach recognizes the potential for behavioural shifts in consumption patterns driven by
increasing income levels, price fluctuations, evolving lifestyles, and changing dietary habits.
The chapter analyzed potential gaps between demand and supply by these contrasting
scenarios.
Chapter-V has the demand and supply analysis with a roadmap for achieving self-
sufficiency in edible oils. This chapter outlines a comprehensive strategy designed to bridge
the existing gap and ensure long-term growth in domestic production. Key strategies include
crop diversification and retention and implementing a "quadrant strategy" that identifies
clusters of states (i.e., high area-high yield, high area-low yield, low area-high yield, and low
area-low yield) based on their potential for specific edible oil crops. This focused strategy
helps allocate resources effectively to each cluster's strengths, including horizontal and
vertical expansion of edible oil cultivation. The chapter further proposes strategic actions
such as utilizing the fallow rabi rice area and adopting improved and advanced crop-
specific technologies for edible oil production. Here, the chapter also explores the untapped
potential of palm oil cultivation. To assess the potential impact of these strategies, the
chapter estimates the increase in total production. It presents the required growth rates
necessary to compensate for rising domestic consumption trends by 2030 and 2047 under
two scenarios: existing practices and the proposed strategic interventions.
Chapter-VI highlights valuable insights from a primary field survey conducted by NITI,
Aayog. This survey includes a sample of 1,261 farmers across seven major oilseed-growing
states (Rajasthan, Maharashtra, Madhya Pradesh, Uttar Pradesh, Haryana, Andhra Pradesh,
and Karnataka). It provides first-hand perspectives from the farmers growing oilseed crops.
Building on these insights and the comprehensive strategies and roadmap outlined in the
previous chapter, the final chapter presents recommendations for achieving “Atmanirbharta”
in the edible oil sector.
By implementing the strategic roadmap and recommendations outlined in this report, India
can ensure “Atmanirbharta” in the edible oil sector with national food security and economic
stability. 5Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Key Highlights:
1. Global Perspective and India’s Position
i. The global economy for edible vegetable oils
1
has seen steady expansion over time,
with forecasts for 2024-25 predicting a 2% rise in production, reaching 228 MT. This
increase is anticipated to be fuelled by significant advancements in soybean, palm,
and rapeseed oil production, alongside moderate sunflower seed oil production
growth.
ii. Global oilseed production has increased nearly tenfold
2
since 1961, rising steadily
from 57.02 MT. Although the cultivated area for oilseeds has expanded, production
has grown much faster. The global oilseed yields also doubled from 5.7 t/ha in
1961 to 13.16 t/ha in 2022-23, reflecting increasing efficiency in oilseed production.
iii. Despite this growth, the world population has grown by 1.5% over the same
period. This population expansion directly contributes to the rise in global oilseed
consumption.
iv. The growth rate of vegetable oils has indeed been surpassing that of oilseeds
over the past three decades due to the inclusion of palm oil, olive oil, coconut oil,
and cottonseed oil, which are not traditionally classified under oilseeds and led to
vegetable oils outpacing oilseeds in growth.
v. Palm oil is in high demand because of its exceptionally high yield (14.6 t/ha)
compared to other vegetable oils. Soybean oil also remains in high demand because
the non-oil fraction of soybean is valuable as high-protein animal feed and, more
recently, for other uses such as biodiesel.
vi. Soybean has consistently been the global leader among oilseeds cultivation
countries, covering an average area of 127.2 Mha during 2017-18 to 2022-23, far
surpassing other oilseeds like rapeseed (36.3 Mha) and groundnuts (30.3 Mha).
vii. Soybean crop accounted for nearly 60% of the total global output over the past
six years (2017-18 to 2022-23), with an average production of 353 MT and an
average global yield of 2.8 t/ha. Rapeseed (75.9 MT), sunflower seed (53.2 MT),
and groundnut (52.2 MT) follow soybean in terms of production, with average
yields of 2.1 t/ha, 1.9 t/ha and 1.7 t/ha, respectively.
viii. Palm oil emerges as the frontrunner in global edible oil production, with an average
production volume of 75.5 MT annually. Soybean oil follows closely behind with
58.9 MT, then rapeseed or canola oil, with an average production of 25.1 MT, and
sunflower oil at 19.1 MT, secures the third and fourth positions, respectively, during
2017-18 to 2022-23.
ix. Palm oil currently leads global vegetable oil consumption, followed by soybean
oil, rapeseed oil (canola oil), and sunflower oil. The USDA's (2024) global market
analysis report projects nearly 3% growth in vegetable oil consumption for food
purposes, with significant gains anticipated for soybean and palm oil and modest
increases for rapeseed oil. Sunflower oil consumption is expected to decrease
slightly.
1. Includes coconut oil, cottonseed oil, groundnut oil, linseed oil, sesame seed oil, olive oil, palm oil, rapeseed oil, safflower seed oil, soybean oil, and sunflower
seed oil.
2. Includes groundnuts (excluding shell), rapeseed, linseed, sunflower seed, safflower seed, soybean seed, sesame seed, and castor seed. 6Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
x. India, the 5th largest economy globally, is a significant player in the global edible
vegetable oil sector, ranking fourth behind the USA, China, and Brazil. It contributes
a substantial global share, accounting for roughly 15-20% of the global oilseed area,
6-7% of vegetable oil production, and 9-10% of total consumption. Despite these
statistics, India still faces a shortfall in meeting its domestic demand, leading to
substantial imports.
xi. India is at the top in rice bran oil production (46.8% of global market share) and
demonstrates clear dominance. Similarly, India is a leader in castor seed production
with an impressive 88.48% global share. The country is second in cottonseed oil
production (28.41% share), following China. For groundnut seeds and oil, India ranks
second with shares of 18.69% and 16.34%, respectively, trailing China and the USA.
xii. The country ranks third in coconut (in shells) and coconut (oil) production
behind Indonesia and the Philippines and for sesame seed oil production behind
China and Myanmar, contributing 22.46%, 14.2%, and 8.73% of the global market
share, respectively. In rapeseed production, India has the third position (13.72%
of the global share, behind Canada and China). In contrast, rapeseed or canola
oil production ranks fourth (11.2% share, behind Canada, Germany and China),
highlighting its significant role in rapeseed-mustard cultivation.
xiii. India is the world's fifth largest producer of soybean and soybean oil (behind Brazil,
USA, Argentina and China), contributing 3.72% and 2.14% of the global market
share, respectively.
xiv. Further, India ranks fifth in linseed production (3.18% share, behind Russia,
Kazakhstan, Canada and China) and sixth in linseed oil production (5.03% share),
with established players like China, Belgium, USA, Germany and Russia posing
challenges in this segment.
xv. Despite its strengths in various oilseed sectors, a critical gap exists in India's palm
and sunflower oil production. Less contribution to the global market for these
oils hinders India's overall competitiveness on the international stage. India must
prioritise strategies to boost domestic palm and sunflower oil production to achieve
greater self-sufficiency and enhance its position in the global edible oil market.
xvi. While India ranks among the largest global producers, a closer look reveals
significant disparities in yield compared to other major producing countries. Nearly
all edible oil crops have displayed lower yields in the last three decades than other
global producers, except for castor.
xvii. India's production of edible oils from secondary sources presents a picture of
uneven performance. While being the second-largest producer of seed cotton
(unginned) globally, India falls short in yield, highlighting a significant gap.
xviii. It is noteworthy that global producers achieve higher yields than Indian oilseed
crops primarily due to the use of genetically modified (GM) herbicide-tolerant
varieties. However, there is an opportunity for India to leverage its existing strengths
in edible oil production and implement targeted strategies to close yield gaps. 7Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
2. Overview of India’s Edible Oil Sector
i. Within Indian agriculture, oilseeds hold the second-highest position in the area,
and production, surpassed only by food grains. India's diverse agro ecological
conditions enable the cultivation of nine annual oilseed crops, including groundnut,
rapeseed-mustard, soybean, sunflower, sesame, safflower, nigerseed, castor and
linseed. However, a major challenge lies in rainfed agriculture, with 76% of the
oilseed cultivation area contributing 80% of total production. Rainfed agriculture
is particularly susceptible to biotic and abiotic stresses, jeopardizing overall
production stability and poses a significant risk of reducing overall production,
necessitating implementing strategies to enhance crop resilience.
ii. Nine major oilseeds account for 14.3% of the gross cropped area in India, contribute
about 12-13% to dietary energy, and account for about 8% of agricultural exports.
Soybean reigns supreme, occupying the largest area at 11.74 Mha, followed by
rapeseed and mustard at 7.08 Mha. Groundnut cultivation holds the third position
with 5.12 Mha. Sesame (1.58 Mha) and castor seed (0.89 Mha) are other significant
contributors. Sunflower, linseed, nigerseed, and safflower occupy considerably
smaller areas, with safflower cultivation at a minimum of 0.07 Mha.
iii. Among nine major oilseeds, soybean leads with 34% of the total oilseed production,
followed by rapeseed & mustard (31%) and groundnut (27%), contributing to more
than 92% of total oilseeds production. This underlines the dominance of soybean,
rapeseed-mustard, and groundnut in India's oilseed production.
iv. The major contribution to domestic edible oil production comes from rapeseed-
mustard oil (45%), groundnut oil (25%) and soybean oil (25%). The minor edible
oilseeds (sesame, sunflower, safflower, and nigerseed) contribute about 5% of the
total domestic oil production.
v. Rajasthan and Madhya Pradesh have the highest production of oilseeds, about
21.42% each of the national production, followed by Gujarat (17.24%) and
Maharashtra (15.83%). Together, these four states contribute to 75.63% of the total
production in the country.
vi. A closer look reveals geographic variations in dominance for specific crops. Rajasthan
leads mustard cultivation, while Madhya Pradesh excels in soybean production. For
sunflower and coconut, Karnataka and Kerala emerge as frontrunners, respectively.
It is noteworthy that Uttar Pradesh and West Bengal hold significant areas for rice
cultivation, whereas Maharashtra and Gujarat lead in cotton production.
vii. The national average yield of oilseeds has been 1.27 t/ha. States such as Tamil
Nadu (2.5 t/ha), Gujarat (1.91 t/ha), Haryana (1.94 t/ha), Telangana (1.80 t/ha),
Rajasthan (1.46 t/ha) have a higher yield than the national average. On the other
hand, states such as West Bengal (1.19 t/ha), Maharashtra (1.18 t/ha), Uttar Pradesh
(1.03 t/ha), Madhya Pradesh (0.99 t/ha), Karnataka (0.94 t/ha) have lower yield
than the national average.
viii. Madhya Pradesh, Maharashtra, and Rajasthan account for 92% of India's soybean
oilseed production. As for groundnut, Gujarat, Rajasthan, Tamil Nadu, Andhra
Pradesh, and Karnataka collectively contribute 83.4% of the country's total 8Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
production. Similarly, Rajasthan, Haryana, Madhya Pradesh, Uttar Pradesh, and
West Bengal collectively contribute 87.9% of India's total rapeseed and mustard
production. This trend is observed across various oilseed crops, emphasizing the
concentrated production contribution from states. These concentrated production
patterns necessitate policy interventions to encourage oilseed cultivation in other
suitable states, nurturing a more geographically balanced and resilient oilseed
sector for India.
ix. Regarding secondary oil crops, significant contributions to palm oil production
come from Andhra Pradesh (87.3%), Telangana (9.8%), Kerala, and Karnataka.
Meanwhile, Gujarat leads in cotton production with a 24.4% share, followed by
Maharashtra, Telangana, Rajasthan, and Karnataka, which collectively contribute
77.3%. Coconut production is dominated by Kerala, followed by Tamil Nadu and
Karnataka, contributing 84% of the total production in the country.
x. Tree-borne oilseeds (TBOs) like wild Apricot, cheura, kokum, olive, simarouba,
mahua, sal seed, mango kernel, dhupa, and tamarind seed offer oils with diverse
uses. For instance, wild apricot in Himachal Pradesh yields oil for cooking and
industry. Cheura from Sikkim and West Bengal is valued for cooking, medicines,
and cosmetics. Kokum, mainly grown in Goa and Maharashtra, is used in chocolates
and biodiesel. Olive cultivation, introduced through Indo-Israel collaboration, has
potential in Rajasthan and other states. These oils could reduce India's reliance on
imports.
3. Growth Trends and Instability in Edible Oil Crops
The area, production, and yield of oilseeds experienced trend growth rates of 0.90%,
2.84%, and 1.91%, respectively, during 1980-81 to 2022-23. Notably, in the most recent
decade, production and yield displayed growth rates of 2.12 % and 1.53 %, respectively.
The total area under oilseeds showed a positive growth trend in all decades except
during 1991-2000.
i. In the last decade, groundnut, rapeseed-mustard, and linseed exhibited positive
yield growth rates of 4.2%, 3.2%, and 3.9%, respectively. Sesame, safflower,
nigerseed, and rice also demonstrated favourable yield growth rates in the same
period. Conversely, soybean, sunflower, coconut, and cotton experienced negative
productivity growth trends during the same period.
ii. The crops showing negative growth trend rates in the cropped area are safflower
(-16.99%), nigerseed (-10.37%), sunflower (-9.07%), linseed (-6.32%), castor (-3.29%),
sesame (-2.05%), and groundnut (-0.25%) in last decade. Conversely, all secondary
oil crops have shown positive trends in their cultivation area.
iii. Amongst the secondary oil crops, rice, from which rice bran is extracted, showed
a positive trend over the decades. However, cotton and coconut experienced a
positive trend in the area in the last decade but a negative trend in production
and yield. The total palm oil production in India for 2021-22 has reached 0.36 MT
from 0.079 MT in 2010-11.
iv. The instability analysis suggests that when a longer period is considered, reflecting
the widespread adoption of improved technology across large areas, the notion of 9Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
increased instability due to new technology adoption is refuted. In the last decade,
only sunflower and safflower experienced fluctuating areas, highlighting challenges
in maintaining consistent cultivation patterns for these crops.
4. Edible Oil Trade Dynamics
i. Edible vegetable oils stand out among agricultural commodities due to their
exceptionally high trade volume. A staggering 41% of global production is traded
internationally, largely driven by major palm oil producers like Indonesia and
Malaysia. These giants export over 70% of their production, jointly accounting for
nearly 60% of global palm oil exports.
ii. India faces a significant challenge in achieving edible oil self-sufficiency. It is heavily
dependent on imports to meet its edible oil requirements and is the largest importer
of vegetable oils globally, followed by China and the USA.
iii. Import dependence on edible oils decreased from 63.2% in 2015-16 to 54.9% in
2021-22. This translates to increased self-sufficiency from 36.8% to 45.1%. However,
this progress is overshadowed by the stark rise in overall consumption. This ever-
widening gap is plugged by significant imports, which have grown from a mere
1.47 MT in 1986-87 to 14.19 MT in 2021-22. The concerning trend continued in
2022-23, with imports further surging to an estimated 16.5 MT, pushing the import
dependency ratio back to 57% from 55% in 2021-22.
iv. Palm oil dominates these imports, accounting for 59%, followed by soybean (23%)
and sunflower (16%).
v. Open General Licenses (OGLs) are a crucial facilitator, enabling essential imports to
bridge the demand-supply gap for edible oils in India. Import duty structures are
strategically reviewed to balance the interests of various stakeholders. Temporarily,
measures were introduced to stabilize cooking oil prices for consumers directly
to control the rise in cooking oil prices. These measures included reducing basic
import duties on crude palm, soybean, and sunflower oil to zero while significantly
lowering the agri-cess from 20% to 5%. Additionally, the basic import duty on
refined palm oils was reduced from 17.5% to 12.5% in December 2021, and the
same on refined sunflower and soybean oil was reduced from 17.5% to 12.5% in
June 2023. This revised structure, extended until March 31st, 2025, demonstrates
the government's ongoing efforts to manage import costs for refined oils. Most
significantly, the government extended the free import policy for refined palm
oils until further notice. This combination of import duty adjustments, temporary
exemptions, and extended free imports highlights the complex nature of India's
dynamic import policy.
vi. Further to encourage domestic production, the government annually announces
MSPs for 22 mandated crops, including seven key oilseeds, namely groundnut,
sunflower, soybean, sesame, nigerseed, rapeseed & mustard, and safflower. Since
2018-19, MSPs have been set at a minimum of 1.5 times the cost of production. Over
the period (2014-2024), the MSP for oilseeds has seen a significant increase, with
nigerseed showing the highest relative change of 142.1%. Notably, the sesamum
MSP has more than doubled with a 101.5% rise, while sunflower seed and soybean 10Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
have also seen substantial growth at 94.1% and 91.1%, respectively. This producer-
centric approach provides financial security for farmers, incentivizing increased
oilseed cultivation.
vii. Groundnut, sesame, soybean, and rapeseed are the main exported oilseeds, with
groundnut being the largest exported crop for the last three consecutive years.
In terms of edible vegetable oil exports, castor oil stands out as the front-runner,
followed by groundnut oil and other oils. Soybean and rice bran are the main
exported oil meals.
5. Demand-Supply Gap
i. The ongoing trend of urbanization in developing countries, including India, is
expected to alter dietary habits and traditional meals particularly. This shift will
likely favour processed foods, generally high in edible oil content. OECD-FAO
Agricultural Outlook (2023-2032) highlighted that India, the world’s biggest
vegetable oil importer, is projected to maintain its high import growth to satisfy
growing domestic demand. The report further emphasized that the consumption
of vegetable oils for food purposes is expected to account for 57% of the total
globally, driven by a growing population and rising per capita consumption in lower
and middle-income countries due to higher incomes and in emerging markets, the
consumption of vegetable oil for food is set to reach levels comparable to those
of wealthier economies.
ii. The ICAR-Indian Institute of Oilseeds Research survey revealed distinct regional
preferences in edible oil consumption across India. Mustard oil reigned supreme in
India's north (61%) and east (35%) zones, followed by sunflower oil. In the west zone,
soybean oil held a slight edge (28%) over mustard (25%) and sunflower (25%) oils.
The south zone presented a different picture, with sunflower oil (44%) dominating,
followed by groundnut oil (29%). These variations likely reflect traditional culinary
practices and locally available oilseeds. Additionally, the survey emphasizes the
influence of dietary choices. Non-vegetarians, comprising 64% of respondents,
consumed an average of 14.2 kg of oil per person annually, compared to the 12.6
kg average for vegetarians.
iii. Interestingly, the choice of edible oil varies between rural and urban areas.
Mustard oil reigns supreme in rural sectors, accounting for approximately 45% of
consumption. In contrast, urban areas favour refined oils, such as sunflower and
soybean oil, which collectively hold a 47% share. This shift towards refined oils
highlights substitutions from traditional options like vanaspati and groundnut oil.
iv. Over the years, there has been a significant increase in average Monthly Per Capita
Consumption Expenditure (MPCE), indicating higher spending power and improved
living standards. By 2022-23, the average MPCE in rural areas surged to `3,773; in
urban areas, it reached `6,459. This substantial rise reflects improved purchasing
capacity and quality of life, particularly in urban areas where the average MPCE
is considerably higher.
v. Complementing the rise in MPCE, there has been a decline in the share of
consumption of cereals in both rural and urban areas of India from 1999-00 to 11Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
2022-23. In 1999-00, cereals accounted for 22.23% and 12.39% of the average
MPCE in rural and urban areas, respectively. However, by 2022-23, these figures
dropped significantly to 4.91% in rural areas and 3.64% in urban areas. This decline
suggests a shift in dietary patterns, possibly towards more diverse and processed
food items.
vi. Congruently, the share of food items overall has declined. In 1999-00, food items
constituted 59.4% and 48.06% of the average MPCE in rural and urban areas,
respectively, while in 2022-23, food items constituted 46.38% in rural areas and
39.17% in urban areas. This trend indicates an evolving consumption pattern in
India, with a growing preference for non-food items, possibly reflecting changes
in lifestyle, income levels, and urbanization.
vii. Rural MPCE on edible oils witnessed a significant jump, rising from `18.2 to `135.5
during 1999-00 to 2022-23. Similarly, urban areas exhibited a substantial increase,
with MPCE on edible oils increasing from ` 26.8 in 1999-00 to `153.1 by 2022-23.
viii. India's persistent demand for edible oil reveals a remarkable rise over six decades
from a per capita consumption perspective. Between 1960-61 and 1980-81,
consumption increased 1.2 times (from 3.2 kg/year in 1960-61 to 3.8 kg/ year in
1980-81). This growth accelerated further, reaching 2.2 times between 1980-81 and
2000-01 (from 3.8 kg/ year in 1980-81 to 8.2 kg/ year annum in 2000-01), and a
staggering 2.4 times from 2000-01 to recent times (8.2 kg/ year in 2000-01 to
19.7 kg/ year in 2020-21). This rising demand can be attributed to many factors,
including changes in income, lifestyle and evolving dietary patterns.
ix. India's oilseed production reached a new high of 41.35 MT in 2022-23, reflecting
a significant increase of 3.39 MT compared to the previous year, i.e., 37.96 MT in
2021-22.The projected estimates of this study suggest a steady increase in major
nine oilseeds production, reaching an estimated 43 MT by 2030 and 55 MT by
2047, up from 37.96 MT in 2021-22 in the Business as Usual (BAU) scenario.
Forecasts of secondary sources of edible oil show a steady rise in production, with
the aggregate reaching a projected nearly 5 MT by 2030 and 12.14 MT by 2047.
This represents a significant increase from the 3.6 MT production level recorded
in 2021-22.
x. The national-level edible oil supply is projected to reach 16 MT by 2030 and 26.7
MT by 2047 from 13.3 MT in 2021-22 in the BAU scenario.
xi. Based on the static / household demand approach, projected demand will reach
29.8 MT by 2030 and 32.6 MT by 2047. These projections indicate a persistent
gap of 14.1 MT and 5.9 MT by 2030 and 2047, respectively. To bridge this critical
gap, the edible oil supply must increase by 2.3 and 2.5 times the current supply
by 2030 and 2047.
xii. Based on the normative approach, by 2030 and 2047, estimated demand is
projected to be 15.87 MT and 17.35 MT, respectively. If the per capita consumption
recommended by the ICMR-NIN is followed for edible oil consumption levels by
2047, India is projected to have a surplus of 0.13 MT and 9.35 MT by 2030 and
2047. 12Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
xiii. Given growing concerns about excessive edible oil consumption highlighted by
organizations like the ICMR-NIN and the WHO, the behaviouristic approach adopts
two forecast scenarios to explore potential future demand trends. Scenario-I aligns
with the average consumption observed in developed countries (25.3 kg/person/
year), while Scenario-II considers the highest consumption level, i.e., the United
States (40.3 kg/person/year). It's important to note that these figures represent
vegetable consumption in food only, excluding industrial usage.
xiv. In Scenario-I, by the year 2030 and 2047, the estimated edible oil demand is
projected to be 38.3 MT and 41.9 MT, and the gap is projected to widen to 22.3
MT and 15.2 MT by 2030 and 2047, respectively. This scenario necessitates a
significant increase in supply, by a factor of 2.9 and 3.2 times of the current supply
by 2030 and 2047, respectively, to bridge the growing demand-supply gap.
xv. In Scenario-II, the demand is projected to be 45.5 MT by 2030 and 66.8 MT
by 2047, and the gap is projected to widen further to 29.5 MT and 40 MT by
2030 and 2047, respectively. This scenario necessitates an even greater increase
in supply, by a factor of 3.4 and 5 times the current supply by 2030 and 2047,
respectively, to address the substantial demand-supply gap.
xvi. In the BAU situation, India’s edible oil demand will reach Scenario-I by 2028 (i.e.,
25.3 kg/person/year) and Scenario-II by 2038 (i.e., 40.3 kg/person/year). Under
the high-income growth circumstance, assuming an estimated 8% annual per capita
NNI growth, India's edible oil demand is expected to reach 25.3 kg/person/year
(Scenario-I) as early as 2025. This represents a three-year advancement compared
to the BAU situation. Furthermore, demand is projected to reach 40.3 kg/person/
year (Scenario-II) by 2031, seven years earlier than anticipated in the BAU situation,
showcasing even higher demand due to accelerated economic growth.
6. Strategies and Roadmap for Accelerating Growth in Edible Oil towards the Goal of
Atmanirbharta
Increasing growth in the edible oil sector towards self-reliance involves a multifaceted
strategy. The proposed strategy charted in this report is structured across three key
pillars: (i) Crop Retention and Diversification, (ii) Horizontal Expansion, and (iii) Vertical
Expansion. Horizontal Expansion Strategy aims to strategically increase the area dedicated
to cultivating edible oil crops. This strategy seeks to bring more land under cultivation
for specific oilseeds. Potential avenues for achieving this include rice fallow lands and
highly suitable wastelands for transformation through palm cultivation and promoting
crop retention and diversification in regions that currently focus on other agricultural
crops. Vertical Expansion Strategy focuses on enhancing the yield of existing oilseed
cultivation areas. This can be achieved through improved farming practices, better-quality
seeds, and advanced production technologies.
i. The state-wise quadrant approach offers a valuable tool for achieving “Atmanirbharta”
in edible oils. Identifying state clusters using four quadrants [i.e., (i) High Area-High
Yield (HA-HY), (iii.) High Area-Low Yield (HA-LY), (iii) Low Area-High Yield (LA-
HY), and (iv) Low Area-Low Yield (LA-LY)] for the edible oil crops cultivated in
India. High Area is above the national average area cultivated for a specific oilseed
crop, while Low Area is below the national average. High Yield is determined by 13Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
exceeding the national average yield for that crop, whereas Low Yield falls below
the national average yield.
ii. States with high cultivation area and yield (HA-HY) can focus on improving
efficiency and adopting best practices from leading global producers. Conversely,
states with high area but low yield (HA-LY) require interventions aimed at vertical
expansion (i.e., enhancing yield). In low-area, high-yield states (LA-HY), the focus
might shift towards horizontal expansion, expanding cultivation while maintaining
efficiency. Finally, areas with low area and low yield (LA-LY) can focus on both
horizontal and vertical expansion. They might necessitate a cost-benefit analysis
to determine the viability of production compared to alternative crops.
iii. Despite some states falling under the high area-high yield quadrant for various
oilseeds, their retention probabilities are surprisingly low. This pattern repeats
across different oilseed crops and states.
iv. Rajasthan, Madhya Pradesh, and Haryana are in the high area-high yield quadrant
for mustard, yet their retention probabilities are just 50%, 0%, and 62%, respectively.
In contrast, despite its low area but high yield, Uttar Pradesh has a strong retention
probability of 92%. Similarly, for soybean, Maharashtra boasts a high area and
yield, but its retention rate is just 38%. On the other hand, Madhya Pradesh and
Rajasthan have much higher retention rates of 72% despite lower yields.
v. In safflower cultivation, Karnataka falls under the high area-high yield quadrant
but has a nil retention probability, whereas Maharashtra, with a lower yield, has
a retention probability of 72%. Groundnut shows a similar trend, with Rajasthan
having a 14% retention probability despite high area and yield. Andhra Pradesh
and Karnataka, falling under the high area-low yield quadrant, have retention
probabilities between 43% and 57%, while Madhya Pradesh and Maharashtra have
0% retention despite high areas.
vi. For sesamum, the area is above average in Uttar Pradesh and Madhya Pradesh,
yet their retention probabilities are just 21% and 0%, respectively. Karnataka and
Maharashtra fall under the high area-low yield quadrant in sunflowers, with retention
probabilities of 50% and 38%, respectively. Lastly, for linseed, Uttar Pradesh and
Madhya Pradesh are in the high area-high yield quadrant but have low retention
probabilities of 21% and 0%, respectively.
vii. A detailed analysis of the horizontal and vertical expansion needed for edible crops
in various states is listed in Chapter-V. States like Gujarat and Andhra Pradesh
(except Rabi season), Karnataka, and Tamil Nadu stand out for their medium
groundnut retention rates (43-64%). Conversely, lower retention rates in Gujarat
(Rabi), Rajasthan, and Maharashtra suggest a need for targeted interventions to
encourage continued groundnut cultivation.
viii. Madhya Pradesh and Rajasthan are at the forefront with high rates of soybean
retention, signifying a continued interest in cultivating this crop. Conversely,
Gujarat and Karnataka display lower retention rates, implying a higher likelihood
of farmers adopting alternative crops. Maharashtra exhibits a low retention rate
(38%), indicating a somewhat balanced inclination towards soybean cultivation. 14Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
ix. Uttar Pradesh takes the top spot with an exceptionally high retention rate (92%)
for rapeseed and mustard, highlighting its dominant position in the state. Haryana
and Rajasthan also demonstrate medium retention rates, suggesting a suitable
environment for these crops. Gujarat exhibits a moderate level (40%), offering
scope for further growth.
x. In cotton cultivation, Karnataka, Andhra Pradesh and Haryana emerges as
leaders with medium retention rates, whereas Maharashtra exhibits low retention.
Sunflower cultivation follows a similar trend, with Andhra Pradesh and Karnataka
demonstrating medium retention. Maharashtra and Haryana, however, exhibit a
lower retention of sunflowers. Safflower cultivation exhibits a notably high retention
rate of 72% in Maharashtra, highlighting its economic importance. Conversely,
Karnataka displayed the lowest retention rate for safflower.
xi. Strategically retaining oilseed crops and focusing on areas potentially lost to cereal
cultivation could boost India's edible oil production by 20% in nine states, adding
7.36 MT of oilseeds and reducing import dependence by 14.2% (2.1 MT), thereby
addressing the demand-supply gap.
xii. For soybeans, states like Madhya Pradesh and Rajasthan, with sizeable areas but
low yields, require interventions to boost production efficiency. States with high
yield potential but currently limited area, such as Karnataka, Telangana, Gujarat,
Nagaland, Uttarakhand, Arunachal Pradesh, Meghalaya, Andhra Pradesh, Mizoram,
Himachal Pradesh, could benefit significantly from focused efforts to expand
soybean cultivation. Finally, states with low yield and limited acreage may need
alternative agricultural strategies to improve their suitability for soybean production.
xiii. In Mustard, states like Gujarat, Punjab, and Telangana need horizontal expansion
to capitalize on their high yield potential. Conversely, despite their high area, Uttar
Pradesh, West Bengal, Jharkhand, and Assam require vertical expansion to increase
yield. States with both low yield potential and limited area, including Bihar, Jammu
and Kashmir, Chhattisgarh, Manipur, Arunachal Pradesh, Nagaland, Uttarakhand,
Maharashtra, Meghalaya, Odisha, Himachal Pradesh, Tripura, Delhi, Sikkim, Andhra
Pradesh, Karnataka, Mizoram, and Tamil Nadu, may require alternative agricultural
strategies to increase yield and cultivation area.
xiv. In the case of groundnut, states with high areas but low yields, such as Andhra
Pradesh, Karnataka, Madhya Pradesh, and Maharashtra, require interventions to
boost productivity, learning from high-yielding groundnut-producing states within
the country. Meanwhile, states with high yield potential but low area, such as
Telangana, West Bengal, Punjab, Goa, and Puducherry, could explore opportunities
to expand groundnut cultivation horizontally. Lastly, states with both low yield
potential and limited acreage, including Uttar Pradesh, Odisha, Chhattisgarh,
Jharkhand, Haryana, Tripura, Manipur, Uttarakhand, Nagaland, Arunachal Pradesh,
Bihar, Kerala, and Himachal Pradesh, may require alternative agricultural strategies
for improvement.
xv. For sesame crops, high cultivation areas but low yields, such as Madhya Pradesh,
Uttar Pradesh, and Rajasthan, require interventions to increase yield, learning from 15Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
high-yielding sesame-producing states within the country. Meanwhile, states with
high yield potential but low area, such as Tamil Nadu, Karnataka, Telangana, Assam,
and others, could explore opportunities to expand sesame cultivation. Lastly,
states with low yield potential and limited area may need alternative agricultural
strategies.
xvi. In Sunflower, states with high areas but low yields, such as Karnataka and
Maharashtra, may require interventions for vertical expansion. Meanwhile, states
with high yield potential but low areas, such as Haryana, Telangana, Bihar, West
Bengal, Punjab, Uttar Pradesh, Gujarat, Madhya Pradesh, and Rajasthan, could
explore opportunities to expand sunflower cultivation. Andhra Pradesh, Tamil Nadu,
Nagaland, Arunachal Pradesh, Jharkhand, and Chhattisgarh have the potential to
enhance both the cultivation area and the yield of sunflower crops.
xvii. In linseed, states like Jharkhand and Chhattisgarh have low yields despite substantial
cultivation areas. Bihar, Rajasthan, Nagaland, Assam, Jammu and Kashmir, and
Arunachal Pradesh have low areas despite significant yield. Meanwhile, states such
as Odisha, Maharashtra, West Bengal, Karnataka, Himachal Pradesh, Meghalaya,
and Tripura need horizontal and vertical expansion.
xviii. Niger seed cultivation in Chhattisgarh shows low yield despite having a substantial
cultivation area. On the other hand, Assam, Andhra Pradesh, Jharkhand, Gujarat,
and West Bengal exhibit low areas despite significantly higher yields, requiring
horizontal expansion. Additionally, states such as Maharashtra and Karnataka
demonstrate low yield potential and limited cultivation area.
xix. In the case of safflower, Maharashtra has a large area having low yield, requiring
substantial efforts to improve it. On the other hand, states like Telangana, Madhya
Pradesh, Arunachal Pradesh, West Bengal, and Bihar achieve high safflower
yields despite having limited cultivation areas and needing horizontal expansion.
Conversely, Jharkhand, Andhra Pradesh, Odisha, and Chhattisgarh need vertical
and horizontal expansion.
xx. Amongst the secondary oil crops in cotton production, states like Punjab, Odisha,
Andhra Pradesh, Madhya Pradesh, Karnataka, and Haryana have significant yields
but low cultivation areas, indicating the need for horizontal expansion. Tamil Nadu,
Meghalaya, and Chhattisgarh face challenges with both low yield potential and
area. Additionally, efforts are needed to increase yield in Maharashtra, where there
is high cultivation area but low yield.
xxi. West Bengal and Andhra Pradesh are earmarked for horizontal expansion for
coconut cultivation. These states have notable yield potential but comparatively
smaller cultivation areas, suggesting the possibility of expanding coconut
cultivation across wider regions. Meanwhile, Kerala and Karnataka are highlighted
for vertical expansion, indicating the need to increase productivity in the existing
cultivation areas. Tripura, Bihar, Chhattisgarh, Nagaland, and Assam are identified
for horizontal and vertical expansion, as they exhibit both low yield potential
and limited cultivation area, requiring comprehensive strategies to boost coconut
production. 16Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
xxii. Rice fallow areas across Indian states reveal a promising opportunity for horizontal
expansion in oilseed cultivation. Utilizing one-third of the rice fallow area in ten
states for oilseed cultivation could increase production by 3.12 MT and reduce
import reliance by 7.1% (1.03 MT of edible oil), thereby addressing the demand-
supply gap.
xxiii. Bridging the yield gap from 12% in castor to 96% in sunflower through widespread
adoption of improved technologies and effective management practices could
increase India's domestic oilseed production by 46% (17.4 MT). This would reduce
edible oil imports by 25.7%.
xxiv. Optimizing seed utilization and processing capabilities are critical to strengthening
the foundation for edible oil self-sufficiency. Studies indicate that high-quality seeds
alone can contribute significantly (15-20%) to increased production, potentially
reaching even higher levels (45%) when combined with efficient management of
other agricultural inputs. However, the current Seed Replacement Ratio (SRR) falls
short of the target of 80-85%, ranging from 25% in groundnut to 62% in rapeseed
mustard, hindering overall yield improvement, as the National Seed Corporation
highlighted.
xxv. The Indian vegetable oil sector is characterized by many small-scale, low-technology
plants with substantial excess capacity, utilizing only 30% of its edible oil refining
capacity. Modernizing existing mills and strategically investing in processing
infrastructure will improve efficiency and minimise waste.
xxvi. Oil palm's significant yield advantage and efficient land utilization solidify its
position as a strategic crop for boosting domestic edible oil production. Therefore,
prioritizing horizontal expansion efforts for oil palm cultivation is crucial for
India's journey towards self-sufficiency. Efforts should focus on capitalizing on
the substantial untapped potential identified by ICAR-IIOPR in the 284 districts,
which estimates an additional 2.43 Mha of land across India for oil palm cultivation.
Furthermore, tactically utilizing two-thirds of the highly suitable areas of wastelands
located in ICAR-IIOPR identified districts (i.e., 6.18 Mha) with the target of 0.34 Mha
annually across the country for the next 18 years till 2042 presents a significant
opportunity for further horizontal expansion. Highly suitable wastelands can be
utilised through inclusive partnerships involving FPOs, FPCs, SHGs, etc., engaged
on long-term contracts. A strategic approach combining horizontal and vertical
expansion, leveraging the untapped potential to increase total edible oil production
by 9.7 MT (from 2.43 Mha) and 24.7 MT from utilizing highly suitable areas of
wastelands (i.e., 6.18 Mha) with a conventional yield assumption of 4 t/ha. Palm oil
alone, through targeted expansion in these identified areas, can potentially increase
a staggering 34.4 MT of edible oil, making a substantial stride towards closing the
existing demand-supply gap.
xxvii. Rice bran, comprising 8.5% of total rice production with 17% oil content, offers
an estimated potential of 1.9 MT of edible oil, with 0.85 MT currently untapped,
translating to a potential 5.9% reduction in the demand-supply gap. Similarly,
cottonseed presents a potential for an additional 1.4 MT of edible oil production, 17Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
contributing to a further 9.7% reduction in India's edible oil demand-supply gap
or import dependence.
xxviii. The strategies and interventions outlined in this report, encompassing horizontal
and vertical expansion approaches, offer a vibrant path towards reducing import
dependence. By implementing the strategic interventions, India has the potential
to significantly increase domestic edible oil production to an estimated increase
of 43.5 MT in edible oil production. This substantial increase has the potential to
not only bridge the import gap but also position India on a trajectory towards
self-sufficiency in edible oils.
xxviiii. By 2030 and 2047, the stated strategic interventions could achieve projected edible
oil supplies of 36.2 MT and 70.2 MT, respectively, achieving self-sufficiency under
the Normative and Household Approaches. These scenarios project a surplus in
edible oil supply in both approaches by 20.3 MT and 52.8 MT under the Normative
Approach and 6.1 MT and 37.6 MT under the Household Approach.
xxix. Behaviouristic Approach, which considers potential changes in food consumption
patterns with rising incomes, offers a more nuanced perspective on India's
future edible oil needs. Scenario-I, which assumes an average developed-world
consumption level of 25.3 kg/person/year, projects a small import gap of 2.1 MT in
2030. However, this gap is projected to close entirely by 2047, with a surplus of
28.3 MT achievable. Scenario-II, based on the highest observed consumption level
of 40.3 kg/person/year (i.e., United States), presents a more concerning picture in
the near term. Under this scenario, a significant gap of 9.3 MT is projected by 2030.
However, even this scenario suggests the potential for achieving self-sufficiency
in the long term, with a projected surplus of 3.4 MT by 2047. These projections
highlight the importance of increasing domestic production and considering
potential shifts in consumption patterns when formulating long-term strategies
for achieving edible oil self-sufficiency.
xxx. To bridge the potential import gap projected under the Behaviouristic Approach,
particularly in the near term, the significant production increase envisioned through
strategic interventions needs prioritized implementation. Realizing this ambitious
target will necessitate a focused approach that leverages the "Quadrant Strategy"
on a state-wise cluster basis. This data-driven strategy involves identifying and
exploiting the potential opportunities within each state cluster for specific edible oil
crops. It emphasizes a scalable approach that prioritizes clusters with LA-LY and
those with HA-LY and LA-HY potential. By strategically targeting these clusters and
implementing tailored interventions, India can maximize its production potential
and effectively address the near-term challenges posed by potential consumption
increases.
xxxi. Over the past five years (2016-17 to 2021-22), India's edible oil sector has witnessed
a CAGR of about 3%. When considering a BAU scenario with current production
levels maintained, this recent growth trend might be sufficient to meet the demand
projected by the Normative Approach. It indicates that India could potentially meet
its edible oil needs based on recommended intake levels if production continues on
its current trajectory. However, achieving self-sufficiency in edible oils necessitates 18Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
a more ambitious strategy. Under the Household Approach, which factors in
population growth, to meet the projected demand by 2030, a significantly higher
CAGR of 9.5% would be required during the 2021-2030 period. Even for the longer-
term goal of self-sufficiency by 2047, a slightly elevated CAGR (3.5 %) from the
existing CAGR would be necessary for 2021-2047.
xxxii. The Behaviouristic Approach introduces another layer of complexity by considering
potential changes in consumption patterns driven by rising income levels, changes
in lifestyles and dietary patterns, and prices. Scenario-I, representing an average
developed-world consumption level, necessitates significantly steeper CAGRs to
achieve self-sufficiency. In this scenario, CAGRs of 12.5% for 2021-2030 and 4.5%
for 2021-2047 would be required to meet the projected demand by 2030 and
2037, respectively. Scenario-II, based on the highest observed consumption level,
presents the most challenging scenario. Here, self-sufficiency by 2030 and 2047
necessitates even steeper CAGRs of 14.6% for the 2021-2030 period and 6.4%
for the entire time period of 2021-2047. These findings highlight the critical need
for strategic interventions to accelerate domestic production and bridge the gap
between current growth trends and long-term self-sufficiency goals.
xxxiiii. The potential gain in edible oil production estimated from the proposed strategic
interventions combined with the existing production level, is anticipated to achieve
self-sufficiency with the recent growth trend (CAGR of 3%) in all scenarios except
for the most demanding scenario (i.e., Behaviouristic Approach Scenario-II based on
the highest observed consumption level) in the near term. To meet the projected
demand by the more immediate target of 2030 under this scenario, a CAGR of
5.2% would be required for the 2021-2030 period, representing a 2.2% increase
from the recent growth situation. This targeted increase can be achieved through
a more focused, rigorous implementation and intensive approach.
7. Recommendations and Way Forward
The insights gained from the farmer’s survey, coupled with a comprehensive strategy and
roadmap outlined in the previous chapter, the following recommendations are presented.
i. Crop Clusters and Technology Customization:
Crop-wise clustering integrates horizontal and vertical expansion efforts for
targeted growth. States are categorized into four clusters (HA-HY, HA-LY, LA-HY,
and LA-LY) based on area and yield performance for each oilseed crop, enabling
nuanced growth strategies (see Chapter-V for detailed lists). The customized
cluster technology needs to be developed to improve yield and establish Agro-
Ecological Sub Region (AESR)-based crop-specific model farms to facilitate the
horizontal spread of advanced technologies.
ii. Horizontal expansion in Rice fallow:
Utilizing one-third of the total Rabi rice fallow area across ten states for oilseed
cultivation has the potential production of an additional 1.03 MT, representing
a significant 7.1% reduction in India's import reliance. To ensure the economic
viability and large-scale implementation of this strategy across the potential states,
exploring the economic feasibility of large-scale cultivation and identifying the
optimal crop selection for different states is critical. 19Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
iii. Enhancing oilseed development in Bundelkhand and the Indo-Gangetic Plain
Revitalizing the Bundelkhand region in Madhya Pradesh and Uttar Pradesh, which
is suitable for oilseed cultivation, is crucial. Prioritizing technology interventions,
especially promoting sesame cultivation tailored to the region's conditions, can
significantly boost farm incomes. Additionally, diversifying the rice-wheat cropping
system in the Indo-Gangetic Plain (IGP) by introducing soybean, rapeseed-mustard,
and sunflower in selected agro-ecological regions offers farmers increased
profitability, addressing groundwater depletion and soil health degradation issues.
iv. Prioritizing Wasteland Utilization for Oil Palm Horizontal Expansion
Prioritizing a strategic approach to horizontal expansion of oil palm cultivation,
leveraging highly suitable underutilized wastelands is recommended. This strategy
can be fostered through inclusive partnerships involving FPOs, FPCs, SHGs, etc.,
engaged in long-term contracts. Specifically, utilizing two-thirds of the total highly
suitable areas of wastelands located in ICAR-IIOPR identified districts (i.e., 6.18
Mha) presents a significant opportunity for large-scale expansion. This approach
has the potential to increase total edible oil production by an estimated 24.7 MT,
making a significant stride towards closing the existing demand-supply gap and
reducing dependence on imports.
v. Cluster-Based Seed Village:
Establish cluster-based seed hubs at block levels, such as “One Block-One
Seed Village,” to supply high-quality seeds for oilseeds aiming to enhance seed
replacement rate (SRR) and varietal replacement rate (VRR). Setting up a resilient
system for these hubs will guarantee farmers access to high-quality oilseeds through
Farmers’ Producer Organizations (FPOs)/ Self Help Groups / FPC promptly.
vi. Promotion of Bio-fortified Oilseed Varieties:
Biofortification must be part of the national oil missions to address micronutrient
malnutrition by enhancing oleic acid in groundnut and soybean, linoleic acid in
linseed, and reducing anti-nutritional factors like erucic acid and glucosinolates
in mustard, and trypsin inhibitor and lipoxygenase in soybean. ICAR has released
14 oilseed varieties (mustard-6, soybean- 5, linseed-1, groundnut-2). Research
institutions should produce more breeder seeds and provide them to state
governments, aiming for a 10-12% annual adoption rate of bio-fortified varieties
by farmers.
vii. State-Level Seed Rolling Plans and Harmonizing Seed Quality Standards:
State governments are crucial in initiating breeder seed production through indent
requests. States should develop five-year seed rolling plans to ensure access to
improved varieties. These plans prioritize replacing outdated oilseed varieties with
high-yielding, bio-fortified, and disease-resistant alternatives. Harmonizing Indian
Minimum Seed Certification Standards (IMSCS) with the Economic Co-operation
and Development (OECD) and the International Seed Testing Association (ISTA)
standards ensures that Indian oilseeds meet global quality requirements, facilitating
international trade opportunities. 20Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
viii. Adoption of Newly Bred Indian Oilseed Varieties:
Existing technologies present significant opportunities to enhance oilseed yields,
with newly developed ICAR varieties showing genetic potential comparable to
leading global producers. This potential ranges from 3.5-4.0 t/ha for groundnut,
3.0-3.5 t/ha for mustard, 2.2-2.8 t/ha in soybean, 2.0-2.5 t/ha in sunflower, 1.0-1.2
t/ha in safflower, 1.2-1.6 t/ha in linseed, and 1.0-1.5 t/ha in sesame, highlights the
importance of scaling up production and widespread distribution of these improved
varieties. The up-gradation of technology in oilseeds is crucial for achieving these
yield improvements.
ix. Adoption of Improved and Advanced Production Technologies:
Bridging the yield gap, which ranges from 12% in castor to 96% in sunflower,
technology improvements can raise national oilseed production by 46%, resulting
in approximately a 26% decrease in import reliance. Crop improvement strategies
should prioritize maximizing genetic potential by integrating conventional breeding
techniques with modern biotechnological tools. Specifically, a focused approach
on heterosis breeding to exploit hybrid vigour is essential for crops like sunflower,
castor, rapeseed-mustard, safflower, and sesame.
x. Harnessing Rice Bran Oil for Domestic Blending:
The rice bran industry offers substantial potential for domestic edible oil production,
capable of yielding nearly a million tons of oil suitable for blending with popular
cooking oils. Collaboration with other major rice-producing countries is essential
to standardizing regulations for rice bran oil under the Codex Committee on Fats
and Oils of the Joint WHO-FAO Food Standards Program, facilitating its large-scale
utilization.
xi. Enhancing Efficiency in the Solvent Extraction Industry:
The solvent extraction industry, despite rapid expansion, faces challenges due to
low-capacity utilization (around 30%), which requires addressing geographical
imbalances in plant distribution and promoting modernization. Optimizing oil
extraction through enhanced mill management practices is essential to achieve at
least 60% annual capacity utilization for increased efficiency in domestic edible oil
production.
xii. Optimizing Storage Strategies and Price Incentives:
Balancing off-season storage profitability with consumer affordability is key.
Implementing fair pricing structures ensures adequate margins for storage costs,
interest, and stakeholder returns, promoting market stability while incentivizing off-
season sales
.
xiii. Enhancing Marketing Infrastructure:
To improve the realizable income of oilseed farmers, ensuring procurement at the
Minimum Support Price (MSP) through NAFED (National Agricultural Cooperative
Marketing Federation of India) and state-owned oilseed federations is essential. 21Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Furthermore, facilitating direct marketing of output with NAFED/state-owned
oilseed federations can act as a catalyst for promoting oilseed cultivation in non-
traditional areas of the country.
xiv. Setting Up Testing Laboratories in the Mandis:
Indian oilseed markets lack a scientific approach, with traders relying solely on visual
inspection. This subjectivity leads to inconsistencies in pricing and disadvantages
producers of higher-quality oilseeds. Establishing standardized quality parameters
and implementing mandatory testing procedures at mandis (agricultural markets)
is vital to address this gap. Testing laboratories may be set up in PPP mode utilizing
the expertise of agricultural universities and ICAR institutions.
xv. Enhancing Oil Palm Sector Efficiency:
Promoting large-scale "captive plantations" and dedicated oil palm "seed gardens"
is crucial to boost domestic edible oil production. Declaring oil palm as a plantation
crop would streamline regulations and facilitate land allocation. Additionally,
enforcing zero-waste policies in processing units ensures byproducts are utilized,
potentially converting palm oil mill effluent (POME) into methane for electricity
generation and supporting value-added enterprises.
xvi. Strategic Partnerships for Sustainable Edible Oil Production:
Leveraging public-private partnerships is crucial for accelerating edible oil
production, utilizing private sector expertise in technology, marketing, seed
production, and area promotion across all oilseed crops, including oil palm,
with buy-back arrangements. Achieving sustainable oil palm production requires
collaboration among government agencies, grower cooperatives, local NGOs, and
the private sector, utilizing initiatives like the Roundtable on Sustainable Palm Oil
(RSPO) to prioritize biodiversity conservation.
xvii. Dynamic Trade Policy for Balanced Growth:
A flexible tariff structure, responsive to global market prices, domestic supply
and demand trends, and the Minimum Support Price (MSP) for oilseeds, offers a
strategic approach. Furthermore, to bolster the domestic refining industry in the
face of rising refined oil imports, a 10-15% increase in the duty differential between
crude and refined oils is recommended, as suggested by the CACP (2023).
xviii. Broadening the Scope of the National Mission on Edible Oils:
Expanding the National Mission on Edible Oils is recommended to achieve self-
sufficiency in edible oils and reduce import dependence. This broadened initiative
should encompass key oilseeds like mustard, soybean, groundnut, sunflower and
sesame. Additionally, exploring the potential of secondary and tree-based oilseed
varieties can further diversify domestic production and enhance overall edible oil
security.
xix. Public Education on Dietary Guidelines:
Encouraging greater use of domestically produced edible oils in the food industry
is crucial for strengthening the domestic edible oil sector. Introducing incentive
schemes that reward food manufacturers for integrating locally sourced and 22Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
processed oils into their products has the potential to generate substantial
economic benefits.
To foster consumer acceptance of domestically produced edible oils, strategies
include culinary workshops targeting chefs, homemakers, influencers leveraging
cooking shows to highlight versatility, and public education emphasizing the
Recommended Dietary Allowance (RDA) of fats and oils, as established by the
WHO and NIN, are crucial. These initiatives support SDG-3 (Good Health and Well-
Being), along with the importance of understanding the financial implications of
health expenditures which aims to reduce catastrophic health spending and ensure
affordable access to health needs, including nutrition.
xx. Data-Driven Transformation and Research Investment:
Addressing disparities in oilseed yields requires a data-driven approach and robust
systems to bridge regional gaps. Investing in research and development is crucial
for transforming the edible oil sector, offering higher returns than input subsidies. 23Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta 23Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
INTRODUCTION
23Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
CHAPTER-I
INTRODUCTION 25Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta 25
INTRODUCTION
INTRODUCTION
1.1 Background
India’s edible vegetable oil sector is a significant player on the global stage, ranking fourth
behind the USA, China, and Brazil; it contributes a substantial share to the global picture,
accounting for roughly 15-20% of the global oilseed area, 6-7% of vegetable oil production,
and 9-10% of total consumption. Within the Indian agricultural sector, oilseeds hold the
second-highest acreage, production, and economic value, surpassed only by food grains
(NABARD, 2020). India’s diverse agroecological conditions enable the cultivation of nine
annual oilseed crops, including groundnut, rapeseed-mustard, soybean, sunflower, sesame,
safflower, niger, castor and linseed. However, a major challenge lies in the rainfed area,
which contributes 76% of the oilseed cultivation area and around 80% of total production.
These rainfed regions are particularly susceptible to environmental challenges like erratic
weather patterns such as potential El-Nino events and heat waves, jeopardizing overall
production stability. This vulnerability poses a significant risk to overall production stability,
necessitating the development and implementation of strategies to enhance crop resilience
in the face of these environmental threats.
Oilseeds account for 14.3% of the yearly gross cropped area in India. India ranks first
in the production of castor, safflower, sesame and niger, second in groundnut, third in
rapeseed-mustard, fourth in linseed, and fifth in soybean. Rajasthan, Madhya Pradesh,
Gujarat, and Maharashtra are the major oilseed-producing states, contributing to more
than 77% of the total oil-seed production in the country. Oilseeds contribute 12-13% to the
dietary energy and account for about 8% of the agricultural exports. Among nine major
oilseeds, soybean (34%), rapeseed & mustard (31%) and groundnut (27%) contribute to
more than 92% of total oilseeds production in the country. However, the major contribution
to domestic edible oil production comes from rapeseed-mustard (45%), groundnut (25%)
and soybean (25%). The minor edible oilseeds (sesame, sunflower, safflower, and niger)
contribute about 5% of the total domestic production. India’s oilseed production reached a
new high of 41.35 million tonnes (MT) in 2022-23, reflecting a significant increase of 3.39 MT
compared to the previous year (PIB, 2023). While primary oilseeds contribute approximately
8.97 MT, secondary sources like cottonseed, palm oil, rice bran, coconut, solvent-extracted
oils, and tree-borne oilseeds (TBOs) add another 3.6 MT. However, despite this positive
growth, the country still falls short of meeting domestic demand. 26Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
India is heavily dependent on imports to meet its edible oil requirements and is the
world’s largest importer of vegetable oils, followed by China and the USA. As per the
Directorate of Vanaspati, Veg Oils and Fats, India imported 14.2 MT of edible oils in 2021-
22 and surged to 16.5 MT during 2022-23, driven by the low 5.5% duty on crude palm
oil, soybean oil and sunflower oil (SEA, 2023). Over the past five decades, the share of
imports has increased considerably, from 3% in 1970-71 to 57%. This dependency on edible
oil is negatively impacting the country’s FOREX (i.e., Foreign Exchange) by 20.56 billion
USD, making it more important for the nation to become self-sufficient (Atmanirbharta)
in the production of edible oil through the promotion of oilseeds and palm oil. Of all the
imported edible oils, the share of palm oil is about 57%, followed by soybean oil (29%) and
sunflower (14%).
Demand for edible oils has been increasing faster than production due to population
growth, rapid urbanization, sustained rise in per capita income, and changing lifestyles and
dietary patterns. In India, per capita consumption of edible oil has witnessed a dramatic
rise, increasing from 3.2 kg/annum in 1960-61 to 3.8 kg/annum in 1980-81, 8.2 kg/annum in
2000-01, 15.8 kg/annum in 2012-13, and 19.7 kg/annum (Directorate of Vanaspati, Veg Oils
and Fats, 2021-22) recently. The demand for edible oil increased at a rate of 4.3%, while
production of oilseeds grew at the rate of 2.2%, necessitating the import of edible oil.
India’s heavy dependence on edible oil imports necessitates a multifaceted strategy to
achieve self-sufficiency (Atmanirbharta) and alleviate the strain on the trade balance and
financial resources. Leveraging fallow rice land and cultivable waste land for cultivation
can significantly expand the area under oilseed production. Simultaneously, implementing
improved and advanced agricultural technologies, such as high-yielding seed varieties,
robust seed traceability, seed village and quality assurance systems creation, and precision
farming techniques, can optimize yields and resource utilization. Encouraging value addition
through domestic processing and refining of oilseeds will not only enhance economic returns
for farmers but also reduce dependence on imported finished products. Well-organized crop
management practices, including combining Integrated Nutrient Management (INM) and
Integrated Pest Management (IPM), are crucial for optimizing plant health and minimizing
yield losses. Strategic crop diversification focused on high-yielding oilseeds and retaining
existing cultivated areas will promote production diversity and long-term sustainability.
Developing efficient marketing and market linkages for domestic oilseeds will streamline
the value chain and ensure fair returns for farmers. Furthermore, strong public-private
partnerships can leverage private sector expertise and resources to accelerate technological
advancements and infrastructure development in the edible oil sector. Finally, implementing
dynamic trade policies prioritising domestic production and discouraging unnecessary
imports can create a supportive environment fostering domestic edible oil production. This
approach mitigates import dependence, empowers rural communities, and strengthens the
agricultural sector.
1.2 Rationale for Atmanirbharta in Edible Oil
“Atmanirbharta,” the Hindi term for self-reliance or self-sufficiency, has become a guiding
principle for Indian government policies, aiming to minimize dependence on imports and
empower the nation to meet its domestic needs. This pursuit of self-sufficiency holds 27Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
immense strategic value for economic advancement, food security, and cultural heritage
preservation. It is pivotal for the transformation of a country into a developed nation.
Achieving Atmanirbharta in edible oil, a critical sector within agriculture promises a
multifaceted benefit: it strengthens the national infrastructure, fosters domestic production
and innovation, and bolsters the production capacity to meet future demands, ultimately
contributing to a sustained rise in living standards. Additionally, edible oils are fundamental
in diverse Indian cuisines and deeply rooted in tradition. By prioritizing Atmanirbharta in
this sector, India can also safeguard its rich culinary heritage, empower rural communities,
and create employment opportunities. Therefore, pursuing Atmanirbharta in edible oil is not
merely an economic goal but a strategic imperative for a self-reliant and prosperous India.
In the motion of thanks on the President’s address to Parliament in Rajya Sabha on
February 7, 2024, The Hon’ble Prime Minister, Shri Narendra Modi, emphasized India’s
commitment to self-reliance in edible oil production. Hon’ble Prime Minister declared, “As
Prime Minister, I reaffirm India’s belief in becoming Atmanirbhar in edible oil production.
We call India a “Krishi Pradhan Desh”, but today, we still import crores of rupees of edible
oil. I have full confidence in the farmers of my country and the policies we have in place.
We can achieve self-sufficiency in the next five years.”
Achieving self-reliance (Atmanirbharta) in the edible oil sector holds immense strategic
importance for India, encompassing several critical aspects:
1.2.1 Minimizing Import Dependency
Over the years post 2011-12, India has seen an exponential increase in the import of edible
oils. The accelerating demand of domestic consumers has surpassed the supply capacity
of domestic consumers by a great amount. This overdependence exposes India to various
vulnerabilities, including volatile prices, market fluctuations, and potential supply disruptions,
impacting national security and economic stability. The path of self-reliance minimizes risks
caused by external factors along with unnecessary economic and political dependence on
other nations. During the year 2021-22, a Centrally Sponsored Scheme, namely, National
Mission on Edible Oil-Oil Palm (NMEO-OP), has been launched to promote oil palm cultivation
for making the country “Atmanirbhar” in edible oils with a particular focus on North Eastern
States and Andaman & Nicobar by increasing area of Oil Palm from 3.70 lakh hectares (Lha)
to 10.00 Lha in 2025-26 in 15 States / UTs.
1.2.2 Achieving Nutritional Security
In the Indian context, achieving nutrition security is deeply intertwined with the health and
sustainability of the edible oils industry. Edible oils not only form an essential component of
diverse culinary traditions across the nation but also play a critical role in nutritional well-
being. They serve as a primary source of dietary fats and essential fatty acids like omega-3
and omega-6, offering vital nutrients such as vitamins and antioxidants. Consumed in
moderation, edible oils contribute to a balanced and varied diet, enhancing food palatability
while enabling the absorption of fat-soluble vitamins like A, D, E, and K. Therefore, ensuring
sufficient and consistent access to safe and nutritious edible oils becomes paramount for
guaranteeing nutrition security for the Indian population. This necessitates focusing on
strategies that bolster domestic production, improve supply chain efficiency, and promote 28Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
responsible consumption practices. Only through a multi-pronged approach, edible oils
remain readily available and valuable contributors to a secure and healthier India.
1.2.3 Enhancing Economic Development
Achieving self-sufficiency in edible oils offers significant economic advantages for India.
Firstly, it creates a closed-loop system where a substantial portion of the industry’s generated
wealth remains within the country. This is evident in Indonesia, where the palm oil sector
contributes a staggering 3-4% to its GDP, showcasing the potential for domestic economic
growth. Additionally, Atmanirbharta generates substantial foreign exchange savings by
reducing dependence on imports. For India, this translates to a reduced need for significant
edible oil imports, positively impacting its balance of payments and overall financial stability.
This is crucial as the edible oil sector; a pivotal economic component directly influences the
nation’s GDP. Furthermore, Atmanirbharta fosters the growth of the domestic processing
industry, creating a value chain that extends beyond primary production. This includes
establishing oil extraction mills, refining units, and packaging facilities, each adding value to
the raw produce. This downstream industry generates additional employment opportunities
and contributes further to economic development. For example, processing units for
groundnut, soybean, palm oil, etc., can create significant value addition and employment,
benefiting rural and urban communities.
Given the multifaceted benefits of Atmanirbharta in the edible oil sector, it is imperative
to address existing challenges and identify effective strategies for growth. Therefore, the
terms of reference for “Pathways and Strategy for Accelerating Growth in Edible Oil towards
Goal of Atmanirbharta” are essential to chart a roadmap for achieving this crucial national
objective.
Terms of Reference:
i. To analyse the performance of the edible oil sector in India by examining trends in
area, production and yield of major oilseeds in India and the world.
ii. To examine the trends in the import and export of the edible oil sector.
iii. To discuss the gap between demand and supply of total and major edible oils in
the country.
iv. To assess the past strategies to achieve self-reliance in the edible oil economy.
v. To develop new strategies & suggest a roadmap to achieve Atmanirbharta in edible
oils. 29Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Overview of Global Edible Oil Sector
29 Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
CHAPTER-II
OVERVIEW OF GLOBAL EDIBLE
OIL SECTOR 31Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
GLOBAL EDIBLE OIL SECTOR: AN OVERVIEW
GLOBAL EDIBLE OIL
SECTOR: AN OVERVIEW
3. FAOSTAT data consists of coconut oil, cottonseed oil, groundnut oil, linseed oil, sesame seed oil, olive oil, palm oil, rapeseed oil, safflower seed oil, soybean
oil, and sunflower seed oil.
Edible oils are mainly vegetable oils that are subjected to several processes to remove
undesirable constituents. To make them suitable for human consumption, most edible oils
are subjected to refining processes, such as neutralization, bleaching and deodorization.
Regarding consumption as a food product, vegetable oils are considered the healthier
alternative as they contain more unsaturated fatty acids than animal fats. The global economy
for edible vegetable oils has witnessed consistent growth over the years, with projections for
2024-25 indicating a 2% increase in production to reach 228 MT
3
. This growth is expected
to be driven by major gains in soybean, palm, and rapeseed oil production, with sunflower
seed oil production also showing modest growth (USDA, 2024) (Figure 2.1).
0
50
100
150
200
250
1961 197019801990200020102022
Major Vegetable oil Production
Production (MT)
Source: FOASTAT Database (2023)
Figure 2.1: Global production of vegetable oils (1961- 2022)
2.1 Global Area, Production, and Yield Trends of Oilseeds
Globally, oilseeds rank fourth behind cereals, vegetables & melons, and fruits & nuts (OECD-
FAO, 2020), occupying 254 Mha of global arable land (FAOSTAT, 2022). While about 40
oilseed crops are consumed worldwide, few hold commercial importance. These crops
are primarily grown for their oil content, used in cooking, industrial applications, and,
increasingly, in producing biofuels. These oilseed production and consumption significantly
impact global food security, trade, and economic stability. Therefore, understanding the
trends and dynamics of the oilseed sector is crucial. 32Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Global oilseed production has witnessed a remarkable expansion over the past six
decades. According to FAOSTAT (2022), global output for the nine major oilseeds (i.e.,
groundnut, linseed, mustard, rapeseed, safflower, sunflower, sesame, soybean, and castor)
reached nearly 559 MT in FY 2022-23. Figure 2.2 visually depicts this impressive growth
trajectory. Since 1961, global oilseed production has increased nearly tenfold, rising steadily
from 57.02 MT. This significant trend underscores the growing importance of oilseeds in
the global agricultural landscape. While the area under oilseed cultivation has demonstrably
expanded, production has grown much faster. This highlights advancements in farming
practices, with global oilseed yield doubling from 5.7 t/ha in 1961 to 13.16 t/ha in 2022-
23, reflecting increasing efficiency in oilseed production. However, despite this growth,
the world population has also grown by 1.5% over the same period. This expansion in
population directly contributes to the rise in global oilseed consumption. Consequently,
continued advancements in production efficiency are crucial to meet this growing demand.
In this context, for nations like India, with a large and expanding population, domestic
oilseed production holds strategic importance for bolstering national food security, reducing
dependence on volatile import markets and ensuring greater self-sufficiency in the edible
oil sector.
0
2
4
6
8
10
12
14
0
100
200
300
400
500
600
196119701980199002000020102022
Yield
Area and Production
Axis Title
Global Area, Production and Yield of Oilseeds
Yield (t/ha) Area (Mha) Production (MT)

Source: FOASTAT Database, 2023
Figure 2.2: Global area, production & yield of oilseeds (1961 - 2022)
Further, according to the USDA global market analysis report (2024), global oilseed
production in 2024-25 is expected to reach a record high of 687 MT, marking a 4%
increase from the 2023-24 marketing year. This growth is primarily driven by increased
soybean production in South America and the United States. Worldwide soybean output
is anticipated to rise by over 25 MT (more than 6%), reaching 422 MT. Global rapeseed
production is projected to remain relatively stable, with gains in Canada, Australia, and
China balancing out declines in the European Union, Ukraine, and India. World sunflower
seed production is forecast to grow, with increases in Ukraine and the European Union
slightly surpassing decreases in Argentina and Russia. Production of other oilseeds, such as
cottonseed, peanuts, and palm kernel seeds, is also expected to grow slightly, while copra
production is predicted to decline. 33Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
2.2 Growth Trends in Oilseeds and Vegetable Oils Production
An analysis of compound annual growth rates (CAGR) from 1961 to 2022 reveals interesting
trends in oilseeds and vegetable oils production (Table 2.1). The initial two decades (1961-
1980) witnessed a significant rise, with oilseeds leading the way at a CAGR of 4.6%, while
vegetable oils grew at a slightly lower rate of 4.3%. Over the subsequent two decades
(1981-2000), oilseed growth declined to a CAGR of 3.6%, while vegetable oils remained
relatively stable at 4.2%. Despite fluctuations, both sectors saw modest recoveries in the
early 21st century. Overall, spanning the entire period from 1961 to 2022, vegetable oils
outpaced oilseeds with a CAGR of 4.4% compared to oilseeds’ 3.9% growth. The growth rate
of vegetable oils has indeed been surpassing that of oilseeds over the past three decades
due to the inclusion of palm oil, olive oil, coconut oil, and cottonseed oil, which are not
traditionally classified under oilseeds and led to vegetable oils outpacing oilseeds in growth.
Table 2.1: CAGR for Oilseeds and Vegetable Oils (1961 - 2022)
CAGR during 1961 - 2022 (%)
YearsOilseedsVegetable Oils
1961-19804.64.3
1981-20003.64.2
2001-20203.94.3
1961-20223.94.4
Source: Author’s computation
2.3 Global Oilseed and Edible Vegetable Oil Scenario
A review of global oilseed statistics from 2017-18 to 2022-23 reveals soybean’s clear
dominance (Figure 2.3). With an average cultivated area of 127.2 Mha, it significantly
surpasses other oilseeds, followed by rapeseed (36.3 Mha) and groundnut (30.3 Mha).
This dominance extends to global production, where soybean accounted for nearly 60%
of the total output over the past six years, with an average production of 353 MT. This
reflects the high demand for soybeans and their superior productivity, with an average
global yield of 2.8 t/ha over the past six years. Furthermore, the average cultivation area
and productivity of soybean have seen an upward trend in recent years, highlighting its
increasing global importance. Rapeseed (75.9 MT), sunflower seed (53.2 MT), and groundnut
(52.2 MT) follow soybean in terms of production, with average yields of 2.1 t/ha, 1.9 t/ha
and 1.7 t/ha, respectively. Notably, oil palm fruit boasts the highest average yield (14.6 t/
ha) over the past six years, followed by coconuts in the shell (5.61 t/ha).
While soybean dominates the oilseed landscape, palm oil emerges as the frontrunner in
global edible vegetable oil production (Figure 2.3). Palm oil dominates the global edible oil
market with an average annual production volume of 75.5 MT. Soybean oil follows closely
behind, maintaining a robust production average of 58.9 MT, reflecting its widespread use
in culinary and industrial applications. Rapeseed or canola oil, with an average production
of 25.1 MT, and sunflower oil at 19.1 MT, secure third and fourth positions in the global
edible vegetable oil production hierarchy. This production profile highlights the significance
of these oils in the global food supply chain. 34Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
127.2
36.3
30.3
28.6
27.9
12.6
11.1
3.6
1.2
0.8
020406080100120140
Soybean
Rapeseed
Groundnuts
Oil palm fruit
Sunflower seed
Sesame seed
Coconuts
Linseed
Castor oilseeds
Safflower seed
Area (in Mha)
353.0
75.9
53.2
52.2
42.5
6.5
3.3
1.8
0.7
0100200300400
Soybean
Rapeseed
Sunflower seed
Groundnuts
Cotton seed
Sesame seed
Linseed
Castor oilseeds
Safflower seed
Production (in MT)
75.5
58.9
25.1
19.1
4.5
4.3
3.3
3.0
1.0
0.7
0.1
020406080
Palm oil
Soybean
Rapeseed or canola oil,
crude
Sunflower-seed oil, crude
Groundnut oil
Cottonseed oil
Olive oil
Coconut oil
Sesame seed Oil
Oil of linseed
Safflower-seed oil, crude
Production of oils (MT)
14.6
5.6
2.8
2.1
1.9
1.7
1.4
0.9
0.8
0.5
05101520
Oil palm fruit
Coconuts
Soybean
Rapeseed
Sunflower seed
Groundnuts
Castor oilseeds
Linseed
Safflower seed
Sesame seed
Yield (t/ha)
Source: Authors computation from FOASTAT Database
Figure 2.3: World area, production and productivity of major edible vegetable oil crops (2017-18 to 2022-23) 35Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
2.4. Global Vegetable Oil Consumption: Rising Demand and Shifting
Preferences
Several factors propel the global consumption of vegetable oils, including population growth,
urbanization, income levels, and dietary shifts. As populations in developing countries expand
and experience economic growth, the demand for vegetable oils is projected to climb.
Additionally, evolving consumer preferences towards healthier options and sustainable
sourcing practices shape consumption patterns.
Palm oil leads global vegetable oil consumption with a significant 77.99 MT annually
(Figure 2.4). Soybean oil, a versatile choice for cooking and food processing, follows closely
behind at 60.72 MT. Rapeseed oil (canola oil) has witnessed a steady rise to 32.82 MT in
2022-23, while sunflower seed oil, valued for its light flavour and high smoke point, reached
20.27 MT in the same period. While consumption across different oil types fluctuates, the
overall trend suggests a growing global appetite for vegetable oils. Looking ahead, the
USDA’s 2024 global market analysis report projects nearly 3% growth in vegetable oil
consumption for food purposes, with significant gains anticipated for soybean and palm
oil and modest increases for rapeseed oil. Sunflower seed oil consumption is expected to
contract slightly. The report identifies China and India as the primary drivers of this growth,
with the European Union maintaining relatively stable usage. The report further highlights
the United States, Indonesia, and Brazil as the leading forces behind the projected rise in
global industrial consumption of vegetable oils.

0
50
100
150
200
250
Total consumption, MT
Palm oil Soybean oil Rapeseed oil
Sunflowerseed oilPalm Kernel oil Peanut oil
Cottonseed oil Coconut oil Olive oil
Source: Statista; US Department of Agriculture (USDA), 2024
Figure 2.4: Consumption of vegetable oils worldwide from 2013-14 to 2023-2024, by oil type (in MT)
2.5 India: A Major Player in the Global Edible Oil Market
India, the 5th largest economy globally, holds a prestigious position among the leading
global producers of oilseeds and edible oils (Table 2.2). India cultivates a wide range of
oilseed crops, including groundnut, soybean, rapeseed, mustard, sesame, safflower, linseed,
niger seed, sunflower and castor. It emerges as a significant player across various global
edible oilseeds and oils market segments. Holding the top position in rice bran oil production 36Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
(46.8% of global market share), India demonstrates clear dominance in this category.
Similarly, castor seed production sees India firmly in the lead with an impressive 88.48%
global share. The country is second in cottonseed oil production (28.41% share), following
China. For groundnut seeds (excluding shelled) and groundnut oil, India again ranks second
with shares of 18.69% and 16.34%, respectively, trailing China and the USA. In addition to
that same seed and safflower seed crude oil production, India ranks second in 18.43% of
the total, respectively, behind Sudan and the USA.
Table 2.2: India’s position in the global edible oil production market (2022-23)
Edible Oil Crop
India’s
Rank
Share in world
production (%)
Next to
Groundnuts, excluding shelled 2nd 18.69China
Groundnut Oil2nd 16.34China (2021)
Soybean5th 3.72 Brazil, USA, Argentina, China
Soybean Oil5th 2.14
China, USA, Brazil, Argentina
(2021)
Castor Seed1st 88.48NA
Rapeseed3rd 13.72Canada, China
Rapeseed or Canola Oil 4th 11.21 Canada, Germany, China (2021)
Safflower5th 6.15 Kazakhstan, Russia, USA, Mexico
Safflower Seed Oil, Crude 2nd 18.43USA (2021)
Sesame Seed2nd 11.70Sudan
Sesame Seed Oil3rd 8.73China, Myanmar (2021)
Linseed5th 3.18 Russia, Kazakhstan, Canada, China
Linseed Oil6th 5.03
China, Belgium, USA, Germany,
Russia (2021)
Rice bran oil1st 46.8NA
Cotton seed oil2nd 28.41China
Coconuts, in shell3rd 22.46Indonesia, Philippines
Coconut oil3rd 14.20Indonesia, Philippines
Source: Author’s computation from FAOSTAT database
India’s strength extends to other oilseeds and oils, too. The country ranks third globally
in coconut production (shells and oil, behind Indonesia and Philippines) and sesame seed
oil production (behind China and Myanmar), contributing 22.46%, 14.2%, and 8.73% of the
global market share, respectively. In rapeseed production, India takes the third position
(13.72% of the global share, behind Canada and China). In contrast, for rapeseed or canola oil
production, it ranks fourth (11.2% share, behind Canada, Germany and China), highlighting its
significant role in rapeseed-mustard cultivation. India is also the world’s fifth largest producer
of soybean and soybean oil (behind Brazil, USA, Argentina and China), contributing 3.72%
and 2.14% of the global market share, respectively. While safflower cultivation positions
India as the fifth largest producer globally (6.15% share), the country faces competition
from other producers like Kazakhstan, Russia, USA and Mexico. Finally, India ranks fifth in
linseed production (3.18% share, behind Russia, Kazakhstan, Canada and China) and sixth
in linseed oil production (5.03% share), following established countries like China, Belgium,
USA, Germany, and Russia, posing challenges in these segments. 37Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Despite its strengths in various oilseed sectors, a critical gap exists in India’s palm
and sunflower oil production. This negligible contribution to the global market for these
oils hinders India’s overall competitiveness on the international stage. India must prioritise
strategies to boost domestic production of palm and sunflower oil to achieve greater
self-sufficiency and enhance its position in the global edible oil market. This could involve
investments in research and development of high-yielding, climate-resilient varieties, exploring
suitable growing regions, and implementing farmer support programs to encourage wider
adoption of these crops. By addressing this gap, India can strengthen its overall edible oil
sector and reduce its dependence on volatile import markets.
2.6 Decadal Yield Comparison of Major Oilseed Producers
While India ranks among the largest global oilseed producers, a closer look reveals significant
disparities in yield compared to other major producers (Figure 2.5). Figure 2.5 presents
decadal yield comparisons (t/ha) between India and other major producers, utilizing a
three-year average (1999-2001, 2009-2011, and 2020-2022) to ensure robust trend analysis.
The data highlights a critical area for improvement in India’s oilseed sector. Understanding
and addressing these yield gaps will be paramount to enhancing domestic production and
achieving greater self-sufficiency in the edible oil market.
India’s performance has been mixed across various oilseeds. Groundnut production has
seen a positive trajectory, with yield rising from 1.0 t/ha in 1999-2001 to 1.8 t/ha in 2020-
2022, reflecting an impressive 80% growth rate. However, the US maintains the global lead
with a yield of 1.8 t/ha and a 50% growth rate. Similarly, the US leads in soybean production
with a 30.7% growth rate. India has shown promise in rapeseed production, achieving a 66.67
% yield increase (0.9 t/ha to 1.5 t/ha) over the past two decades, surpassing Germany’s
modest 5.7% growth. Castor seed presents a bright spot, with India’s yield experiencing a
remarkable 111.12% surge (0.9 t/ha to 1.9 t/ha) compared to the same period. In contrast,
sesame seed production showcases a different picture. Nigeria boasts the highest yield
globally, with an 80% growth rate, while India’s yield has grown moderately from 0.3 t/ha
to 0.5 t/ha. Safflower seed production exhibits opposing trends, with the US witnessing
a negative growth rate of 18.75% compared to India’s positive growth of 60%. Linseed
production reveals a similar pattern. India’s yield has increased from 0.4 t/ha to 0.6 t/ha,
while Canada’s yield has grown from 1.2 t/ha to 1.4 t/ha. Finally, Brazil stands out in coconut
yield, achieving a remarkable 81.34% growth rate (7.5 t/ha to 13.6 t/ha). India’s coconut
yield has also grown, transitioning from 4.8 t/ha to 6.4 t/ha over the same period, but at
a slower pace (33.34%).
India’s production of edible oils from secondary sources presents a picture of uneven
performance. While holding the distinction of being the second-largest producer of seed
cotton (unginned) globally, India falls short in terms of yield, highlighting a productivity gap.
Similarly, despite contributing a significant 25-30 % to global rice production, India’s rice
bran yield lags behind that of other major rice-producing nations. This indicates potential
areas for improvement in harvesting and processing techniques to enhance rice bran
oil production. Furthermore, India’s palm oil production remains negligible on the global
stage. These disparities allow India to leverage its existing strengths in secondary edible oil
production from secondary sources and implement targeted strategies to close yield gaps. 38Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Source: Author’s computation from FAOSTAT database
Figure 2.5: Yield comparison across highest producer countries (1999-2022 unit: t/ha)
1.0
0.9
1.7
0.9
1.5
1.9
0.7
0.80.8
0.5
0.6
0.7
0.3
0.40.4
0
0.5
1
1.5
2
2.5
1999-2001 2009-2011 2020-2022
Castor (t/ha)
China India Myanmar
Brazil Mozambique Linear (India)
7.5
10.5
13.6
5.8
6.26.1
5.05.24.94.8
5.5
6.4
4.0
4.4
4.0
0
2
4
6
8
10
12
14
16
1999-2001 2009-2011 2020-2022
Coconut (t/ha)
Brazil Indonesia Sri Lanka
India Philippines Linear (India)
3.0
3.8
4.5
2.9
3.4
3.9
1.5
1.21.2
1.0
1.2
1.8
0.70.80.8
0
1
2
3
4
5
1999-2001 2009-2011 2020-2022
Groundnut (t/ha)
United States of AmericaChina
NigeriaIndia
SudanLinear (India)
1.2
1.41.4
0.7
1.0
1.3
0.70.70.7
0.40.4
0.6
0.3
0.8
0.9
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1999-2001 2009-2011 2020-2022
Linseed (t/ha)
Canada China Kazakhstan
India Russia Linear (India)
3.5
3.73.7
3.0
3.5
3.3
1.5
1.8
2.1
1.5
1.9
2.0
0.9
1.2
1.5
0
0.5
1
1.5
2
2.5
3
3.5
4
1999-2001 2009-2011 2020-2022
Rapeseed (t/ha)
Germany France China
Canada India Linear (India)
1.6
1.5
1.3
1.2
1.5
1.8
0.5
0.6
0.8
0.4
0.6
0.7
0.3
0.6
0.7
0
0.5
1
1.5
2
1999-2001 2009-2011 2020-2022
Safflower Seed (t/ha)
United States of AmericaMexico
IndiaKazakhstan
RussiaLinear (India)
0.50.5
0.9
0.4
0.70.7
0.3
0.50.5
0.3
0.4
0.5
0.1
0.2
0.3
0
0.2
0.4
0.6
0.8
1
1999-2001 2009-2011 2020-2022
Sesame Seed (t/ha)
NigeriaUnited Republic of Tanzania
MyanmarIndia
SudanLinear (India)
2.6
3.0
3.4
2.5
2.9
3.2
2.52.5
2.8
1.71.7
2.0
1.0
1.2
1.0
0.00
1.00
2.00
3.00
4.00
1999-2001 2009-2011 2020-2022
Soybean (t/ha)
United States of AmericaBrazil
ArgentinaChina
IndiaLinear (India) 39Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
OVERVIEW OF INDIA’S EDIBLE OIL SECTOR
39 Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
CHAPTER-III
OVERVIEW OF INDIA’S
EDIBLE OIL SECTOR 41Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
OVERVIEW OF INDIA’S
EDIBLE OIL SECTOR
India has a diverse ecological landscape, enabling various edible oil crops to be cultivated.
However, the area dedicated to oilseed production, the volume produced, and overall yield exhibit
significant variations across the nation. A six-year average (2017-18 to 2022-23) of cultivation
area, production, and productivity has been analysed to account for these variations and mitigate
the impact of potential fluctuations. This analysis provides a more comprehensive understanding
of India’s oilseed sector and is a valuable baseline for future strategic planning and policy
interventions.
Figure 3.1 presents an overview of India’s area dedicated to cultivating nine major oilseed
crops. Soybean reigns supreme, occupying the largest area at 11.74 Mha, followed by rapeseed
and mustard at 7.08 Mha. Groundnut cultivation holds the third position with 5.12 Mha. Sesame
(1.58 Mha) and castor seed (0.89 Mha) are other significant contributors. Sunflower, linseed,
nigerseed, and safflower occupy considerably smaller areas, with safflower cultivation at a
minimum of 0.07 Mha.
Soybean leads the pack with the highest output of 12.66 MT, closely followed by rapeseed
and mustard at 10.27 MT. Groundnut production is substantial as well, at 9.43 MT. Castor seed
and sesame hold moderate production levels of 1.57 MT and 0.75 MT, respectively. The remaining
oilseeds – sunflower, linseed, safflower, and nigerseed - contribute significantly lower volumes,
with nigerseed production at the lowest (0.04 MT). This data underscores the dominance
of soybean, rapeseed, mustard, and groundnut in India’s oilseed production landscape, while
highlighting the need for potential strategies to enhance the cultivation and productivity of
other oilseeds to achieve greater diversification and self-sufficiency. The detailed state-wise
contribution of oilseeds is discussed in the next section.
3.1 Oilseed Area, Production and Yield: State-Level Dynamics in India
3.1.1 Oilseed Cultivation: Overall
Area: Madhya Pradesh has the highest area under cultivation, totalling 7.29 Mha, followed by
Rajasthan (4.97 Mha), Maharashtra (4.58 Mha), Gujarat (2.97 Mha), and Uttar Pradesh with 1.20
Mha.
Production: Rajasthan and Madhya Pradesh have the highest production of around 21.42% each,
of the national production, followed by Gujarat (17.24%), and Maharashtra (15.83%). Together,
these four states contribute to 75.63% of the total production in the country. 42Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Yield: The national average yield over the last six years (2017-2022) has stood at 1.27 t/ha. States
such as Tamil Nadu, Gujarat, Haryana, Telangana, and Rajasthan, have surpassed this average,
achieving yields of 2.49 t/ha, 1.97 t/ha, 1.94 t/ha, 1.81 t/ha, and 1.47 t/ha, respectively. Conversely,
states like West Bengal (1.19 t/ha), Maharashtra (1.18 t/ha), Uttar Pradesh (1.03 t/ha), Madhya
Pradesh (0.99 t/ha), and Karnataka (0.94 t/ha) have recorded yields lower than the national
average. Map 3.1 showed the detailed information on the area, production, and productivity of
total oilseeds across different states in India.

0 2 4 6 8 10 12 14
Soyabean
Rapeseed & Mustard
Groundnut
Sesasum
Castorseed
Sunflower
Linseed
Nigerseed
Safflower
Area (Mha)
0 2 4 6 8 10 12 14
Soyabean
Rapeseed & Mustard
Groundnut
Castorseed
Sesasum
Sunflower
Linseed
Safflower
Nigerseed
Production (MT)
Source: DoA&FW
Figure 3.1: Area and Production of oilseeds in India (2017-2022)
3.1.2 Oilseed Cultivation: Kharif Season
Area: In terms of Kharif cultivation area, Madhya Pradesh leads with 6.39 Mha, followed by
Maharashtra (4.45 Mha), Gujarat (2.71 Mha), and Rajasthan (2.22 Mha). These four states
account for 83% of the total Kharif national oilseed acreage.
Production: Madhya Pradesh has the highest production (i.e., 0.59 MT), constituting around
26.53% of the national production, followed by Gujarat (23.94%), Maharashtra (23.55%),
and Rajasthan (12.78%). Together, these four states contribute to 86.82% of the total Kharif
oilseed production in the country. 43Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Yield: Among the major producers, states such as Gujarat (1.97 t/ha), Rajasthan (1.28 t/ha),
Maharashtra (1.18 t/ha) have a higher yield than the national average (i.e., 1.17 t/ha). On
the other hand, states such as Karnataka (0.93 kg/ha), Madhya Pradesh (0.92t/ha), Andhra
Pradesh (0.75 t/ha) have lower yields than the national average. Map 3.2 illustrates the
total area, production, and productivity of Kharif oilseeds across different states in India.
3.1.3 Oilseed Cultivation: Rabi Season
Area: In terms of Rabi cultivation area, Rajasthan leads with 2.76 Mha, followed by Madhya
Pradesh (0.90 Mha), Uttar Pradesh (0.76 Mha), West Bengal (0.68 Mha) and Haryana with
0.64 Mha. These five states collectively account for 73% of the total area, with Rajasthan
alone representing 35%, followed by Madhya Pradesh with 11.4%.
Production: Rajasthan has the highest production (i.e., 4.43 MT) of Rabi oilseeds at 37.91%
of the national production, followed by Madhya Pradesh (1.26 MT), Haryana (1.25 MT), Uttar
Pradesh (1.03 MT), and West Bengal (0.91 MT). Together, these five states contribute to
76.1% of the total Rabi production in the country.
Yield: States such as Tamil Nadu (3.54 t/ha), Haryana (1.95 t/ha), Gujarat (1.94 t/ha),
Rajasthan (1.61 t/ha) have a higher yield than the national average (i.e., 1.48 t/ha). On the
other hand, states such as Madhya Pradesh (1.41 t/ha), Uttar Pradesh (1.36 t/ha), West
Bengal (1.32 t/ha) and Jharkhand (0.74 t/ha) have lower yields than the national average.
The state-wise depiction of Rabi oilseeds is shown in Map 3.3.
Map 3.1: Total area, production and productivity under oilseed crops (2017-2022) 44Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta

Source: DoA&FW
Map 3.2: Total area, production and productivity under Kharif and Rabi oilseeds crops (2017-2022) 45Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table 3.1 gives details of leading states contributing to India’s edible oil crop acreage
and production, a closer look reveals geographic variations in dominance for specific crops.
Madhya Pradesh is the top contributor to total oilseed production, followed by Rajasthan
and Gujarat. However,
individual crop leadership varies. Rajasthan takes the lead in mustard
cultivation, while Madhya Pradesh excels in soybean production. For sunflower and coconut,
Karnataka and Kerala emerge as frontrunners, respectively. It is noteworthy that Uttar
Pradesh and West Bengal hold significant areas for rice cultivation, whereas Maharashtra
and Gujarat lead in cotton production.
Table 3.1 also indicates that cumulative production shares in oilseeds predominantly
come from the top three or four states. For instance, Madhya Pradesh, Rajasthan, and
Gujarat collectively contribute significantly to the total oilseed production, accounting for
approximately 60% of the total production in some cases. This trend is observed across
various oilseed crops, emphasizing the concentrated production contribution from these
states. For example, in mustard cultivation, Rajasthan leads with a substantial production
share, followed by Madhya Pradesh and Uttar Pradesh. A similar pattern is evident in
soybean and sunflower cultivation, where Madhya Pradesh and Maharashtra play dominant
roles. These concentrated production patterns necessitate policy interventions to encourage
oilseed cultivation in other suitable regions, fostering a more geographically balanced and
resilient oilseed sector for India.
Table 3.1: Top three states in Area and Production of edible oil crops (2017-2022)
Edible oil
crops
States
Area
contribution
(%)
States
Production
(MT)
Production
contribution
(%)
Cumulative
share of
production
(%)
Total
oilseeds
MP 26.88 Rajasthan 7.65 21.69 21.69
Rajasthan 19.03 MP 7.37 20.92 42.61
Gujarat 10.99 Gujarat 6.10 17.3 59.91
Groundnut
Gujarat 35.37 Gujarat 3.99 42.29 42.29
Rajasthan 14.67 Rajasthan 1.64 17.35 59.64
AP 14.42 Tamil Nadu 0.99 10.48 70.12
Mustard
Rajasthan 41.68 Rajasthan 4.66 45.36 45.36
MP 12.03 MP 1.27 12.34 57.70
UP 11.13 Haryana 1.11 12.16 69.86
Soybean
MP 49.07 MP 5.39 42.55 42.55
Maharashtra 35.39 Maharashtra 5.27 41.62 84.17
Rajasthan 8.89 Rajasthan 1.00 7.88 92.05
Sunflower
Karnataka 56.72 Karnataka 0.11 49.59 49.59
Maharashtra 11.95 Odisha 0.02 8.89 58.48
Odisha 6.19 Haryana 0.02 7.71 66.19 46Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Edible oil
crops
States
Area
contribution
(%)
States
Production
(MT)
Production
contribution
(%)
Cumulative
share of
production
(%)
Sesame
MP 20.97 West Bengal 0.22 28.64 28.64
UP 20.56 MP 0.15 20.29 48.93
Rajasthan 16.7 Gujarat 0.10 13.06 61.99
Safflower
Karnataka 49.36 Karnataka 0.03 55.45 55.45
Maharashtra 39.33 Maharashtra 0.02 35.87 91.32
Telangana 6.61 Telangana 0.00 8.05 99.37
Niger
seed
Odisha 35.23 Odisha 0.02 41.47 41.47
Chhattisgarh 30.68 Chhattisgarh 0.01 19.14 60.61
MP 14.21 MP 0.01 14.96 75.57
Linseed
MP 33.89 MP 0.05 36.83 36.83
Jharkhand 21.54 Jharkhand 0.03 20.01 56.84
UP 14.27 UP 0.02 14.84 71.68
Castor
Gujarat 72.08 Gujarat 1.29 82.01 82.01
Rajasthan 19.32 Rajasthan 0.24 14.95 96.96
AP 3.43 AP 0.01 0.92 97.88
Rice
West Bengal 11.96 West Bengal 15.97 13.04 13.04
UP 10.77 UP 12.79 10.44 23.48
Odisha 8.73 Punjab 12.77 10.43 33.91
Coconut
Kerala 35.74 Kerala 6.86 32.94 32.94
Karnataka 28.09 Tamil Nadu 5.40 25.91 58.85
Tamil Nadu 20.49 Karnataka 5.17 24.8 83.65
Cotton
Maharashtra 33.86 Gujarat 8.10 23.36 23.36
Gujarat 19.4 Maharashtra 7.67 23.38 46.74
Telangana 15.65 Telangana 5.38 16.41 63.15
Source: Author’s computation
3.2 Analysing Growth Trends and Instability in Edible Oil Crops
Production
This section delves into the growth trends of major oilseed and secondary edible oil crops
over the past four decades (1980-2022) by employing trend growth rates. Understanding
the variability and growth patterns in agricultural produ
ction is crucial to assessing changes
in output over time and formulating effective policy
interventions for the edible oil sector. To
achieve this objective, the Cuddy-Della Valle Instability (CDVI) index, which incorporates
trend analysis into the traditional coefficient of variation, is utilized alongside decomposition
analysis (Cuddy & Della Valle, 1978). This combined approach provides a more comprehensive
understanding of the factors influencing production growth and instability, paving the way
for well-informed policy options to enhance the stability and sustainability of India’s edible
oil sector.
3.2.1 Trend Growth Rate Analysis
The growth rate of area, production, and productivity of edible/non-edible oils in India has
been calculated for five time periods viz. 1980-2022 (overall period), 1980-1990, 1991-2000,
2001-2010 and 2011-2022 (Table 3.2). 47Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table 3.2: Trend growth rate of area, production and
productivity of edible/non-edible oils in India (1980- 2022)
Years (Period)1980-2022 1980-1990 1991-2000 2001-2010 2011-2022
Edible Oilseeds
Groundnut
Area -1.27 1.64 -2.3 -0.96 -0.25
Production 0.5 3.75 -1.25 0.77 2.76
Yield 1.8 2.07 0.78 2.76 4.24
Rapeseed
& Mustard

Area 1.08 1.94 0.72 3.34 0.12
Production 3.16 7.29 0.77 5.7 2.94
Yield 1.8 5.35 0.63 2.2 3.27
Soybean
Area 7.52 17.11 10.23 5.72 1.87
Production 8.75 18.05 13.05 8.93 -0.55
Yield 1.13 0.61 2.56 3.02 -2.39
Sunflower
Area -0.79 26.25 -2.98 4.29 -9.07
Production 0.2 22.07 -3.21 6.13 -11.93
Yield 0.37 -3.57 -0.02 1.74 -8.69
Sesame
Area 0.99 -0.58 -5.5 1.6 -2.05
Production 0.89 3.22 -4.8 1.42 -1.21
Yield 1.91 3.72 0.72 -0.12 0.94
Safflower
Area -6.4 2.3 -4.72 -3.88 -16.99
Production -5.77 1.8 -3.76 0.31 -16.21
Yield 0.76 -0.48 0.83 4.58 1.58
Niger seed
Area -3.16 1.06 -2.27 -1.7 -10.37
Production -2.86 2.67 -3.21 0.01 -9.46
Yield 0.34 1.58 -0.81 1.39 0.49
Non-Edible Oilseeds
Linseed
Area -5.34 -4.89 -4.66 -4.12 -6.32
Production -3.45 -3.14 -2.53 -2.96 -2.56
Yield 2.04 1.85 2.07 1.25 3.95
Castor
Area 1.48 1.57 -0.32 -0.57 -3.29
Production 4.93 3.63 3.51 6.48 -1.71
Yield 1.89 1.54 3.95 7.2 1.83
Total Oilseeds
Area 0.9 2.85 -0.88 2.2 0.57
Production 2.84 5.99 0.56 5.36 2.12
Yield 1.91 3.06 1.45 3.08 1.53
Secondary Sources
Coconut
(Coconut Oil)
Area 1.67 3.47 2.34 0.1 0.75
Production 3.17 4.69 2.69 3.51 -0.26
Yield 1.47 1.18 0.35 3.4 -1 48Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Years (Period)1980-2022 1980-1990 1991-2000 2001-2010 2011-2022
Edible Oilseeds
Cotton
(Cottonseed)
Area 0.71 -1.26 2.71 2.03 0.82
Production 3.31 2.8 2.3 13.61 -0.55
Yield 2.58 4.09 -0.42 11.34 -1.35
Rice (Rice
Bran)

Area 0.52 0.42 0.67 -0.02 0.47
Production 2.4 3.61 2.02 1.58 2.26
Yield 1.87 3.19 1.34 1.6 1.78
Source: Authors’ computations using data from MoAF&W
Note: Negative
growth rate shown in pink, light green indicates growth exceeding 2%, and dark green
indicates growth exceeding 5%.
From 1980 to 2022, the total oilseeds area grew at a modest rate of 0.90%, while
production and yield increased more significantly at 2.84% and 1.91%, respectively. The 1980s
saw robust growth, with area, production, and yield rising by 2.85%, 5.99%, and 3.06%.
However, in the 1990s, the area declined by 0.88%, resulting in a low production growth of
0.56%, despite a 1.45% increase in yield. The early 2000s experienced a resurgence in area
and yield growth, at 2.20% and 3.08%, boosting production by 5.36%. In the last decade
(2011-2022), growth rates slowed, with area increasing by 0.57%, production by 2.12%, and
yield by 1.53%.
During the last decade (2011-2022), among the nine oilseed crops, only soybean and
rapeseed-mustard exhibited positive annual compound growth rates in the area, at 1.87%
and 0.12%, respectively. In the same period, the CAGR revealed that the area under safflower
decreased the most significantly (16.99%), followed by sunflower (9.07%), linseed (6.32%),
and castor seed (3.29%). Rapeseed-mustard showed the highest growth rate in production
(2.94%), followed by groundnut (2.76%). The decelerated growth rate in production was
noticed in safflower declined the most (16.21%), followed by sunflower (11.93%), nigerseed
(9.46%), linseed (2.56%), sesame (1.21%), and soybean (0.55%). The accelerated growth
rate in productivity was noticed in 7 oilseed crops such as groundnut (4.24%) followed by
linseed (3.95%), rapeseed-mustard (3.27%), castor seed (1.83%), safflower (1.58%), sesame
(0.94%), and nigerseed (0.49%). However, a decelerated growth rate in productivity was
observed in sunflower (8.69%) and soybean (2.39%) over the last decade.
Over the period from 1980 to 2022, the cultivation area for only four specific oilseed
crops, soybean, sunflower, mustard, and castor, demonstrated an increase in cultivation
areas. The most significant improvement was in soybean cultivation, a remarkable increase
from 0.61 Mha in 1980 to 12.61 Mha in 2022.
Amongst the secondary oil crops, from 1980 to 2022, the coconut area grew steadily
at 1.67%, with production increasing by 3.17% and yield by 1.47%. Cotton saw a modest area
increase of 0.71%, with a significant production rise of 3.31% and yield growth of 2.58%.
Rice experienced a slight area increase of 0.52%, with production growing by 2.40 % and
yield by 1.87%. Over the decades, coconut production faced declines in the last decade,
cotton production surged in the early 2000s, and rice maintained consistent growth in both
production and yield throughout.
The detailed analysis of growth for each edible oil crop is discussed in the following section. 49Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
3.2.1.1 Groundnut
Groundnut acreage in the country has fluctuated over the years, and area has declined from
6.5 Mha to 4.7 Mha as farmers are shifting from Groundnut to other remunerative crops.
Area has shrunk continuously while the yield has been increasing in the last 42 years (1980-
2022) establishing an inverse relationship between the productivity and cultivated area.
The increased productivity of groundnut is largely due to improvements in Rajasthan and
Gujarat. Rajasthan, ranking second in production, exhibited an impressive 91% yield increase,
from 1.1 t/ha to 2.1 t/ha. Meanwhile, Gujarat saw an 18.4% rise in productivity from 1.9 t/ha
to 2.3 t/ha over the last decade. The productivity decline in Tamil Nadu is concerning, as
it has decreased by 10.38% over the past decade. For the same decade, Rajasthan showed
a remarkable 379% increase in production, while Gujarat demonstrated a 155% increase.
3.2.1.2 Rapeseed and Mustard
In the period (1980-2022), the CAGR in area, production, and productivity of total rapeseed
and mustard in India recorded was 1.08, 3.16, and 1.8 %, respectively. Area of rapeseed and
mustard showed maximum growth in the year 2001-2010 while minimum growth in the
recent decade, i.e. 0.12. The last decadal growth rate in production and productivity was 2.94
% and 3.27%, respectively. Rajasthan, Madhya Pradesh, and Haryana collectively account for
approximately 70% of the total crop production. These leading states have demonstrated
growth in area, production, and productivity, with the exception of Haryana, where the yield
has decreased by 10.3 % over the last decade, dropping from 1.9 t/ha to 1.7 t/ha.
3.2.1.3 Soybean
In recent decades, soybean cultivation in India has shown a favorable trend, marked by
notable increases in both area and production. The cultivated area for soybean has increased
from 6.42 Mha in 2000-01 to 12.91 Mha in 2021-22. Likewise, soybean production has seen
a significant increase, increasing from 5.2 MT in 2000-01 to 12.6 MT in 2021-22.
A significant challenge facing the soybean sector is its low yield despite increasing
trends in both area and production. The most notable decline in yield occurred during
the last decade (2011-20), with a negative growth rate indicating a decrease of 2.3%
annually. Madhya Pradesh, Maharashtra, and Rajasthan collectively account for 92% of total
production. Among these dominant states, Madhya Pradesh experienced a slight decrease
in area by approximately 1% and a decline in production by 15.2% over the last decade.
During the same period, there was a drastic decrease in yield in Madhya Pradesh, from 2
t/ha to 0.9 t/ha, and in Maharashtra, from 1.3 t/ha to 1.02 t/ha in 2022. The declining trend
in soybean yields in India is a cause for concern, as soybean is an important crop for the
country, both for domestic consumption and for export.
3.2.1.4 Sesame
In the last 42 years (1980-2022), the area has shrunk continuously while the yield has been
increasing in the same period establishing an inverse relationship between the productivity
and cultivated area. In the last decade, the area of sesame was reduced from 1.9 M ha
to 1.72 M ha, and production has gone down by -1.21 %. A major production decline was
witnessed in Rajasthan in the last decade, decreasing from 0.22 Mha to 0.079 Mha (a decline
of approximately 64%). Uttar Pr
adesh and Madhya Pradesh have seen stable cultivation
areas over the past decade, while West Bengal has experienced a notable 43% increase in
area, expanding from 0.18 Mha to 0.25 Mha. 50Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
In terms of production, Gujarat and Madhya Pradesh experienced minimal increases
over the decade. However, West Bengal’s production grew significantly from 0.16 MT to
0.25 MT (approximately 56.25%).
3.2.1.5 Sunflower
The overall growth of sunflower cultivation in India from 1980 to 2022 indicates a mixed
performance across different states. Karnataka, Odisha, and Haryana contribute to 66% of
the production, with Maharashtra also having a prominent area under sunflower cultivation.
The area under sunflower cultivation experienced a negative growth rate of -0.79% (1980-
2022), implying a slight decline in the cultivated area over the given period. Over the last
decade, there has been a decline in area, primarily attributable to Maharashtra (from 0.208
M ha to 0.030 M ha in 2022-23, a decline of approximately 85.58%) and Odisha (from
0.020 M ha to 0.018 M ha, a decline of approximately 10%). However, the production of
sunflower showed a positive growth rate of 0.2% over the period from 1980-2022, but
in the last decade, it experienced a decelerating growth of 11.9%. Maharashtra is largely
responsible for this decline, with total production dropping from 0.125 MT to 0.015 MT (an
approximate decline of 88%).
3.2.1.6 Safflower
In the last 42 years both area and production has shrunk continuously while the yield has
been increasing in the same period. Safflower have the least growth rates in terms of
production and productivity. The area showed the positive growth trend only for decadal
period 1980-90, but it has declined tremendously in the last decade with growth rate of
-16.99 %. The area under safflower cultivation has slumped by 64% since 1991, while the
production has witnessed a fall by 42% during the same period. Maharashtra, Karnataka,
and Telangana contributed 99% of the overall safflower production in the country. In the
last decade, both Maharashtra and Telangana showed declines in safflower acreage, by
approximately 440% and 33%, respectively. Similarly, safflower production has declined
tremendously in Maharashtra, dropping from 0.094 MT to 0.023 lakh tonnes in the last
decade. In contrast, Karnataka showed a positive change in production, increasing from
0.046 MT to 0.056 MT, while Telangana’s production has remained more or less the same
over the last decade. The productivity in Telangana showed remarkable improvement, with
a positive growth rate over the last decade, increasing from 0.67 t/ha to 0.90 t/ha (an
increase of approximately 34.33%). Similarly, Maharashtra productivity increased from 0.5
t/ha to 0.7 t/ha (an increase of approximately 40 %) along with Karnataka.
3.2.1.7 Niger seed
Over the past 42 years, Niger seed cultivation in India has seen a decline in cultivated area
and production, with growth rates of 3.16% and 2.86%, respectively. However, there has been
a slight improvement in productivity, with a growth rate of 0.34%. From 2011 to 2022, Niger
seed cultivation in India faced significant challenges, with Odisha, Chhattisgarh, and Madhya
Pradesh-accounting for 75% of production-experiencing major declines in cultivated area.
The overall area decreased by 10.37%, with notable reductions in Chhattisgarh (0.066 to
0.025 Mha), Madhya Pradesh (0.106 to 0.010 Mha), and Odisha (0.093 to 0.035 Mha). From
2011 to 2022, Niger seed production witnessed declines in key states such as Chhattisgarh
experienced a 54.55% decrease, Madhya Pradesh saw an 86.96% decrease, and Odisha
recorded a 65.79% decrease in production. 51Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
3.2.1.8 Secondary edible oils
In the last decade (2011-2022), the area under cotton and coconut cultivation increased modestly
by 0.82% and 0.75 %, but production declined by 0.55% and 0.26%. The yield of cotton and
coconut both also decreased by 1.35% and 1%, indicating challenges in maintaining productivity
despite expanded cultivation. Rice production exhibited a positive trend over the entire period,
with a 2.26% increase in the last decade. The area under rice cultivation saw a slight rise of 0.47%,
and the yield improved by 1.78%, reflecting steady advancements in agricultural practices and
production technologies. Overall, these trends illustrate the varied growth rates and productivity
changes in secondary oils, with rice, as a staple crop, showing consistently positive growth rates
in almost all decades.
3.3 Instability Analysis of Edible Oils
The agricultural sector is heavily dependent on climatic factors, making it highly susceptible to
uncertainty. While growth with stability is considered ideal, growth often comes with instability.
Growth rates alone typically do not capture the fluctuations or instability present in time series
data. This is where measures like the Cuddy Della Valle Index become crucial, as they help
quantify and categorize the instability, providing a clearer picture of the underlying variability
in agricultural performance.
The Cuddy–Della Valle instability method (Cuddy and Della Valle, 1978) is used to measure
instability in time series data for the total area, production, and yield of edible oils. Unlike
the commonly used Coefficient of Variation (CV), which tends to overestimate instability in
the presence of linear or non-linear trends, the Cuddy Della Valle method corrects this by
adjusting the CV when data are scattered around trend lines. This prevents overestimation
of the instability index. The study categorizes CDVI values into three levels: values below 15
indicate low instability, values between 15 and 30 signify medium instability and values above
30 represent high instability.
Table 3.3 presents the instability index of various edible crops. The results align with the
findings of Chand and Raju (2009), suggesting that when a longer period is considered, reflecting
the widespread adoption of improved technology across large areas, the notion of increased
instability due to new technology adoption is refuted. Over extended periods, technological
advancements in agriculture have contributed to stabilizing production and productivity, as
evidenced by the generally moderate to low instability indices observed across various oilseed
crops. This indicates that Indian agriculture has developed resilience to absorb various shocks
in supply caused by climatic and other factors.
From 1980 to 2022, sunflower and safflower showed significant production instability,
while castor exhibited variability in productivity. In the last decade (2011-2022), sunflower and
safflower also experienced fluctuating acreage, highlighting challenges in maintaining consistent
cultivation patterns for these crops. Among the major oilseed crops, mustard productivity
exhibited high instability from the period 1981-2010. However, in the last decade (2011-2022),
mustard productivity has shown signs of stability, marking a shift towards more consistent
output in recent years.
Groundnut was highly stable in area and production during 1991-2000. However, in the last decade
(2011-2022), there has been increased instability. Nigerseed and linseed have consistently shown stable
figures in both area and production over the decades, indicating reliable cultivation patterns.
Among secondary oil crops like coconut, rice (rice bran), and cotton (cottonseed), area, production,
and productivity have shown consistent st
ability in output and efficiency, highlighting their
reliability in agricultural production. 52Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table 3.3: Instability in area, production and yield of edible oil crops in
different periods between 1980-81 and 2022-23 at all India levels (%)
Edible oil Crops 1981-2022
Years (period)
1981-2022 1981-1990 1991-2000 2001-2010 2011-2022
Groundnut
Area
10.07 7.42 7.01 6.23 18.06
Production 20.38 19.38 13.3 25.67 21.09
Yield 18.75 13.34 13.01 20.3 16.75
Mustard

Area
14.12 9.12 5.57 15.63 13.46
Production 17.64 12.75 10.76 18.77 11.9
Yield 9.87 39.58 67.7 39.17 18.21
Soybean
Area
7.52 17.11 10.23 5.72 1.87
Production 26.64 18.09 10.09 12.14 13.74
Yield 21.84 12.5 7.18 4.68 6.02
Sunflower
Area
26.68 28.9 17.59 22.62 38.48
Production 58.9 27.6 17.97 21.98 13.7
Yield 27.04 15.17 7.35 12.68 33.76
Sesame
Area
7.12 7.15 5.95 6.28 6.32
Production 15.8 14.01 10.35 16.26 8.92
Yield11.19 8.37 10.78 15.68 6.29
Safflower
Area
24.49 9.36 18.23 4.92 45.67
Production 30.01 14.95 36.56 17.58 25.22
Yield 19.72 16.1 28.09 13.83 16.9
Niger seed
Area
16.62 6.35 3.8 5.28 9.57
Production 20.19 14.23 9.2 12.57 13.76
Yield9.9 9.7 7.42 7.57 6.52
Non-Edible Oilseeds
Linseed
Area
10.36 6.96 7.67 7.03 14.91
Production 12.46 9.42 8.93 4.24 17.23
Yield 8.57 7.03 6.88 6.93 6.27
Castor
Area
18.28 22.17 8.12 18.49 15.82
Production 26.74 33.14 10.82 19.72 17.77
Yield 37.76 22.29 10.69 9.53 4.99
Secondary Sources
Coconut
(Coconut Oil)

Area
7.45 2.78 4.91 1.97 3.04
Production 12.93 8.85 7.52 5.89 9.76
Yield11.21 6.53 5.79 6.76 8.67
Cotton
(Cottonseed)

Area13.32 5.52 5.42 6.91 5.8
Production 25.55 17.84 10.25 14.42 7.62
Yield 16.69 13.02 8.72 14.44 7.6
Rice
(Rice Bran)

Area4.37 0.03 1.35 3.55 1.7
Production 8.72 8.32 3.12 8 3.05
Yield 6.77 5.68 2.59 5.32 2.39
Source: Authors’ computations using data from MoAF&W
The production of palm in India has not been continuous over the decades, making it
challenging to collect decade-wise data. Therefore, the area, production, and status of palm
cultivation are discussed separately due to the discontinuous nature of data availability. 53Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
3.4 Palm cultivation in India
Palm oil production in India has come a long way since its introduction in the 1970s. The
significant growth phase started in the 1990s and picked up pace in the 2000s, supported by
government schemes and missions. In August 2021, the government launched the National
Edible Oil Mission-Oil Palm (NMEO-OP) to further boost domestic production and reduce
import dependency.
Area: The national area under oil palm cultivation in India surged from 44,788 ha to 3,70,028
ha during 2004-05 to 2020-21. Andhra Pradesh led this growth, increasing from 27,514 ha
to 184,640 ha, representing 52.1% of the total share. Significant expansions were also seen
in Karnataka (from 2,124 ha to 46,954 ha, 13.2%), Tamil Nadu (from 5,913 ha to 32,982 ha,
9.3%), Mizoram (26,680 ha, 7.5%), Odisha (from 1,484 ha to 23,130 ha, 6.5%), and Telangana
(21,382 ha, 6.0%).
Table 3.4: State-wise cultivated area under oil palm cultivation in India
State
Area (ha)
2004-052021-22
India44,7883,70,028
Andhra Pradesh27,5141,84,640
Karnataka2,12446,954
Tamil Nadu5,91332,982
MizoramNA26,680
Odisha1,48423,130
TelanganaNA21,382
Source: Ministry of Agriculture and Farmers’ Welfare
The role of the North-Eastern Region (NER) is pivotal in achieving Atmanirbharta in
edible oil, as the scope for Oil Palm production spans across six NER states: Arunachal
Pradesh, Assam, Manipur, Mizoram, Nagaland, and Tripura, encompassing a vast potential
area of 8.4 lakh hectares, which is 38% of the national potential (PIB, 2024).
Production: In the FY 2021-22, palm oil production in India exhibited varying levels across
different states. The total palm oil production in India for the year reached 3.61 lakh tonnes.

Source: Ministry of Agriculture and Farmers’ Welfare
Figure 3.2: Crude Palm oil production (2010-11 to 2021-22: lakh tonnes) 54Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table 3.5 presents state-wise production of crude palm oil (CPO) in India for the years
2008-2009 and 2021-2022. Andhra Pradesh leads with a significant increase from 43,593
tonnes in 2008-2009 to 295,075 tonnes in 2021-2022, reflecting a 14.33% growth rate.
Telangana shows even more substantial growth, rising from 4,770 tonnes to 48,141 tonnes
over the same period, with a growth rate of 20.59%. Karnataka’s production expanded
from 1,170 tonnes to 10,068 tonnes, marking a 10.43% growth rate. Mizoram recorded 6,775
tonnes in 2021-2022. Overall, India’s CPO production grew from 58,167 tonnes to 360,729
tonnes, indicating a significant national increase in crude palm oil cultivation.
Table 3.5: State-wise production of Crude palm oil production
State
Crude palm oil production (in tonnes)
2008-20092021-2022
Andhra Pradesh43,5932,95,075
Telangana4,77048,141
Karnataka1,17010,068
MizoramNA6,775
India58,1673,60,729
Source: Ministry of Agriculture and Farmers Welfare (India)
Yield: According to the Indian Institute of Oil Palm Research (IIOPR), oil palm is renowned
for its high vegetable oil yield, yielding up to 5 t/ha. During the initial yield stabilization
period, typically spanning 4 to 8 years after planting, the yield of fresh fruit bunches can
attain around 12 t/ha. After this period, as the oil palm trees mature further, exceeding 8
years of growth, the yield can rise to approximately 20 t/ha. These figures highlight the
progressive increase in productivity as oil palm trees mature and stabilize in their growth
and fruit production.
3.5 Edible Oils Trade Dynamics: Import and Export
Edible vegetable oils stand out among agricultural commodities due to their exceptionally
high trade volume. A staggering 41% of global production is traded internationally, driven in
large part by major palm oil producers like Indonesia and Malaysia. These giants export over
70% of their own production, jointly accounting for nearly 60% of global palm oil exports
(OECD-FAO, 2021). India, the world’s largest importer, exemplifies this trend. Domestic
demand for edible oils has grown steadily at a rate of more than 7% in the last decade,
and the country currently relies on imports to meet 57% of its consumption needs. Palm
oil dominates these imports, accounting for 59%.
The Government of India has taken proactive steps to address import dependence and
enhance domestic edible oil production. The Centrally Sponsored Scheme, National Food
Security Mission- Oilseeds & Oil Palm (NFSM-OS&OP), launched in 2018-19, focuses on
increasing the production and productivity of nine oilseed crops alongside area expansion
for oil palm and tree-borne oilseeds (TBOs). This initiative was further bolstered in 2021-22
with the introduction of the National Mission on Edible Oil (NMEO)Oil Palm (NMEO-OP).
This dedicated mission prioritizes oil palm cultivation, particularly in the North Eastern States
and Andaman & Nicobar Islands, aiming to increase the area under oil palm cultivation from
0.37 Mha to 1 Mha by 2025-26 towards the increase in Crude Palm Oil (CPO) production 55Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
in the country. Additionally, the Rashtriya Krishi Vikas Yojana-RAFTAAR (RKV-RAFTAAR)
program provides support for crop production activities related to oilseeds. Building on these
efforts, the 2024 budget announcement outlined a comprehensive strategy for achieving
“Atmanirbharta” (self-sufficiency) in key oilseeds like mustard, groundnut, sesame, soybean,
and sunflower. This strategy encompasses research for high-yielding varieties, widespread
adoption of modern farming techniques, market linkages, procurement mechanisms, value-
addition initiatives, and crop insurance schemes.
India’s edible oil trade dynamics have significantly transformed over the past few
decades. By the early 1990s, the country achieved near self-sufficiency, even emerging as
a notable exporter of oilseed meal. However, the mid-1990s witnessed a surge in demand
for edible oils, driven by a combination of factors: cheaper imports due to globalization and
rapid economic growth leading to an increase in per capita consumption. This resulted in a
growing reliance on imports to meet domestic needs. While the self-sufficiency percentage
has fluctuated over the years, concerted government efforts have shown some success.
Import dependence on edible oils has been brought down from a high of 63.2% in 2015-16
to 54.9% in 2021-22 (Figure 3.3). This translates to increased self-sufficiency from 36.8% to
45.1% during that period. However, this progress is overshadowed by the stark rise in overall
consumption, which has exploded from 5.34 MT in 1986-87 to a staggering 25.84 MT in
2021-22. Domestic production, although increasing from 3.87 MT to 11.65 MT over the same
period, has not kept pace with demand. This ever-widening gap is currently plugged by
significant imports, which have grown from a mere 1.47 MT in 1986-87 to a concerning 14.19
MT in 2021-22 (Figure 3.4). The concerning trend continued in 2022-23, with imports further
surging to an estimated 16.5 MT as total demand reached 28.9 MT based on preliminary
data (1st advance estimates by DAC&FW), pushing the import dependency ratio back up
to 57.07%.
Source: Directorate of Vanaspati, Veg Oils and Fats
Figure 3.3: Share of imports & self-sufficiency over the years (1986- 2022 unit: %) 56Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Source: Directorate of Vanaspati, Veg Oils and Fats
Figure 3.4: Production, Consumption & Imports of Edible oils in India
3.5.1 Imports
Edible oils emerged as a significant component of India’s import basket. In the financial year
2022-23, ranked seventh among the most imported commodities. This category accounted
for a noteworthy 3.1% share of the nation’s total imports. Over the period 2016-17 to 2022-
23, India’s average import dependency for edible oils stood at 57%. Palm oil dominates
these imports, accounting for 59% on average, followed by soybean oil (23%) and sunflower
oil (16%). These three oils collectively constitute a staggering 98% of India’s total edible
oil imports (Figure 3.5). Furthermore, India exhibits a high degree of concentration in
its import sources. For palm oil, Indonesia (62%) and Malaysia (32%) are the dominant
suppliers. Soybean oil imports are heavily reliant on Argentina (75%) and Brazil (14%), while
sunflower oil imports are sourced primarily from Ukraine (85%), followed by Russia (8%)
and Argentina (6%). This reliance on a limited number of source countries underscores
potential vulnerabilities associated with geopolitical instability, weather disruptions, and
price fluctuations in those regions. The economic significance is further highlighted by the
fact that total edible oil imports were valued at nearly `1400 billion, with palm oil accounting
for a substantial 55%, followed by soybean oil (30%) and sunflower oil (15%).
Source: DFPD, DAC&FW, and Department of Commerce, Government of India
Figure 3.5: Edible Oil Availability and Import Share over 2016-17 to 2022-23 57Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
India’s edible oil imports are primarily categorized into crude and refined oils. Crude
oils, traditionally favoured for retaining more natural properties, have consistently formed
a significant portion of these imports. During this period, palm oil consistently emerged as
the dominant crude oil import (i.e., 45.8%) followed by crude soybean (23%), and crude
sunflower (15.9%). A detailed breakdown of the specific types of edible oils imported by
India from 2016-17 to 2022-23 is provided in Figure 3.6. Further, according to the Solvent
Extractors’ Association (SEA Handbook, 2023), India’s refined edible oil imports reveal a
significant surge in the contribution of RBD (Refined, Bleached, and Deodorized) Palmolein.
It has swiftly escalated to 14% of total edible oil imports, marking a substantial increase from
its share of 6% in 2020-21 and a mere 3% in 2019-20. It’s worth noting that RBD Palmolein’s
share in total refined oil imports has consistently been 100% since 2007-08. Understanding
this import profile is crucial for informing strategic decisions aimed at diversifying import
sources, enhancing domestic production, and mitigating potential risks associated with
import dependence.
Source: DFPD, DAC&FW and Department of Commerce, Government of India
Figure 3.6: Major Edible Oil Imported by India (2016-17 to 2022-23)
3.5.1.1 Bridging the Gap: Government Strategies to Balance Import
Dependence and Domestic Production
India faces a complex challenge in its edible oil sector. The country grapples with
the need to bridge the gap between its high import dependence and the need to
incentivize domestic oilseed production. The Government of India has implemented
a multifaceted strategy to address this issue, employing a dynamic import policy
alongside farmers-centric Minimum Support Prices (MSPs) for oilseeds.
• Understanding the Import Reliance: Data from the Socio-Economic Assessment
(SEA) sheds light on a key driver of import dependence - reduced import duties.
Crude palm oil, soybean oil, and sunflower oil face a minimal duty of just 5.5%.
This policy shift coincides with a significant rise in import reliance observed after
2011-12. 58Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
• Lessons from the Past: India’s history offers valuable insights. The “Yellow
Revolution,” spearheaded by the Technology Mission on Oilseeds (TMO) during the
1990s, helped to achieve self-sufficiency in edible oils. This can be largely accrued
to the government’s price support and import substitution policies. However, due
to various WTO agreements, the price support through customs and import taxes
was reduced to extremely low, if not completely withdrawn.
• The Challenge and the Response: This shift in trade policies, coupled with a rising
demand for edible oils, has created a widening gap between domestic production
and import reliance. The Government of India’s multifaceted strategy acknowledges
this challenge.
• Dynamic Import Management: Open General Licenses (OGLs) are a crucial
facilitator, enabling essential imports to bridge the demand-supply gap for edible
oils. Import duty structures are strategically reviewed to balance the interests
of various stakeholders. Temporarily, measures were introduced to stabilize
cooking oil prices for consumers directly to control the rise in cooking oil prices.
These measures included reducing basic import duties on crude palm, soybean,
and sunflower oil to zero while significantly lowering the agri-cess from 20%
to 5% (Figure 3.7). This policy, extended until March 31st, 2025, exemplifies the
government’s commitment to immediate price stabilization. Additionally, the basic
import duty on refined palm oils was reduced from 17.5% to 12.5% in December
2021, and the same was true for refined sunflower and soybean oil, which was
reduced from 17.5% to 12.5% in June 2023. This revised structure, extended until
March 31, 2025, demonstrates the government’s ongoing efforts to manage import
costs for refined oils. Most significantly, the government extended the free import
policy for refined palm oils until further notice, highlighting the government’s
commitment to ensuring continued availability for domestic consumption. This
combination of import duty adjustments, temporary exemptions, and extended
free imports highlights the multifaceted nature of India’s dynamic import policy.
• Incentivizing Domestic Production: Further encouraging domestic production, the
government annually announces MSPs for 22 mandated agricultural crops, including
seven key oilseeds - groundnut, sunflower seed, soybean, sesame, nigerseed,
rapeseed & mustard, and safflower. The increase in MSP for marketing season
2024-25 is in line with the Union Budget 2018-19 announcement of fixing the MSP
at a level of at least 1.5 times the All-India weighted average cost of production.
Over the period (2014-2024), the MSP for oilseeds has seen a significant increase,
with nigerseed showing the highest relative change of 142.1%. Notably, the sesamum
MSP has more than doubled with a 101.5% rise, while sunflower seed and soybean
have also seen substantial growth at 94.1% and 91.1%, respectively (Annexure-I).
This producer-centric approach provides financial security for farmers, incentivizing
increased oilseed cultivation. 59Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Source: Department of Food and Public Distribution, Ministry of Consumer Affairs
Figure 3.7: Import duty on edible oils
By acknowledging the historical context, employing a dynamic import policy focusing on
immediate price stabilization and long-term import reduction strategies, and offering producer-
centric MSPs, the Government is actively working towards achieving a sustainable balance
between import dependence, domestic production encouragement and consumer welfare. A
nuanced approach considering both cultivation economics and import dependence is crucial
for success. Policy interventions should encourage the cultivation of high-return edible oil
crops. These crops offer a strategic advantage due to their favourable return-on-cost ratios.
Additionally, exploring measures to reduce the production cost of edible oils can further enhance
profitability and incentivize farmers. By prioritizing high-return crops, implementing strategic
import management, and promoting promising domestic alternatives like palm oil, India can
significantly reduce import reliance and establish a more self-sufficient edible oil sector. This
strategy fosters a win-win situation for producers, consumers, and the nation’s food security.
3.5.2 Exports
Groundnut has emerged as the dominant export crop, accounting for around 60% of the
total oilseed export share in 2021-22. Sesame seeds hold the second-largest export position,
followed by soybean and rapeseed (Table 3.6).
Table 3.6: Total Export of Oilseeds (2019-20 to 2021-22)
Items
2019-202020-212021-22
Quantity Value Quantity Value Quantity Value
Sesame seed282.3 37.2 273.3 31.6 242.2 30.4
Groundnut664.4 51.0 638.3 53.8 514.2 47.0
Rapeseed & Mustard 31.8 1.4 55.1 2.8 39.2 2.8
Niger seed11.6 1.1 19.6 1.6 6.0 0.6
Safflower seed 2.6 0.1 4.0 0.2 2.9 0.2
Sunflower seed 1.2 0.1 1.3 0.1 1.5 0.1
Soybean74.7 3.1 68.5 3.1 43.4 3.1
Linseed12.0 0.8 11.9 0.9 11.2 1.2
Cottonseed0.4 0.2 0.7 0.2 0.2 0.2
Total1080.9 95.0 1072.8 94.3 860.7 85.5
Source: DGCI&S; (Quantity in 000’ tonnes, Value in ` Billion) 60Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
An analysis of vegetable oil exports from India over the past three years (Table 3.7) reveals
a clear leader: castor oil. Despite fluctuations in export volume, castor oil has consistently
maintained its position as India’s most exported vegetable oil. Following castor oil by a
significant margin is groundnut oil. This trend highlights India’s dominance in the global
castor oil export market, potentially indicating a strategic advantage for this crop.
Table 3.7: Total Export of Vegetable Oils (2019-20 to 2021-22)
Items
2019-202020-212021-22
Quantity Value Quantity Value Quantity Value
Groundnut oil 38.2 3.9 24.1 3.4 20.1 2.9
Sesame oil 8.7 1.4 8.7 2.1 7.3 1.7
Sunflower &
Safflower oil
2.5 0.2 3.4 0.3 8.0 0.9
Mustard &
rapeseed oil
3.8 0.5 5.4 0.8 4.8 1.0
Linseed oil 0.2 0.1 0.3 0.1 0.3 0.1
Castor oil 547.7 57.8 686.4 60.8 662.8 78.0
Cotton oil 0.5 0.0 0.1 0.0 0.1 0.0
Sal oil (fat) 2.8 0.6 1.9 0.4 1.9 0.4
Mango kernel
oil
0.2 0.1 0.6 0.2 0.4 0.2
Kokum oil
(fats)
0.2 0.0 0.1 0.0 0.1 0.0
Rice bran oil 12.5 1.3 9.4 1.2 6.9 1.2
Source: DGFT / DGCIS (Quantity in 000’ Tonnes, Value in Rs. Billion)
Rapeseed meal tops the chart in terms of export quantities of oil meals over the past
three years on average, followed by soybean meal, rice bran meal, and castor seed meal,
while in terms of export value, soybean is on the top, followed by rapeseed, rice bran and
castor (Table 3.8).
Table 3.8: Export of Oil meals (2019-20 to 2021-22)
Items
2019-202020-212021-22
Quantity Value Quantity Value Quantity Value
Soybean
692.4 2185.0 1564.8 5825.4 327.7 2206.7
Groundnut 4.1 11.0 16.0 45.7 3.6 12.2
Rice Bran 236.6 330.0 575.8 756.0 749.8 983.9
Rapeseed 961.3 1540.0 1113.0 2019.2 866.4 2035.5
Castor Seed 236.6 330.0 419.9 220.0 382.4 368.8
Note: Quantity in 000’ tonnes, Value in ` Billion; Source: SEA, 2023 61Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta 61Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
DEMAND AND SUPPLY OF MAJOR EDIBLE OILS
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
DEMAND AND SUPPLY OF MAJOR EDIBLE OILS
61Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
CHAPTER-IV
DEMAND AND SUPPLY OF
MAJOR EDIBLE OILS 63Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta 63Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
DEMAND AND SUPPLY OF MAJOR EDIBLE OILS
DEMAND AND SUPPLY
OF MAJOR EDIBLE OILS
4.1. Rising Demand for Edible Oils in India
India’s domestic production of oilseeds has witnessed a steady upward trend since 2016-17,
following a period of fluctuation between 2011-12 and 2015-16. This increase represents a
significant growth of nearly 49% from 2015-16 to 2021-22. However, despite this progress,
domestic production remains insufficient to meet the nation’s ever-growing edible oil
demand. As the world’s second-largest consumer and leading importer of vegetable oils,
India faces a unique challenge. The ongoing trend of urbanization in developing countries,
including India, is expected to alter dietary habits and traditional meals particularly. This shift
will likely favour processed foods, generally high in edible oil content. OECD-FAO Agricultural
Outlook (2023-2032) highlighted that India, the world’s biggest vegetable oil importer, is
projected to maintain its high import growth to satisfy growing domestic demand. The
report further emphasized that the consumption of vegetable oils for food purposes is
expected to account for 57% of the total globally, driven by a growing population and
rising per capita consumption in lower- and middle-income countries due to higher incomes
and in emerging markets, the consumption of vegetable oil for food is set to reach levels
comparable to those of wealthier economies (OECD/FAO, 2023).
Oilseed crops hold significant value in the agricultural sector, serving as the foundation
for refined edible oil products. Consumers do not directly consume oilseeds; they are
processed into edible oil for consumption. This escalating demand can be attributed to
several key factors, including population growth, urbanization, increasing disposable income
and per capita consumption, and growing awareness about health and nutrition. India’s vast
geographical expanse results in regional variations in oilseed availability and, consequently,
the types of edible oils consumed. The ICAR-Indian Institute of Oilseeds Research (ICAR-
IIOR, 2022) survey revealed distinct regional preferences in edible oil consumption across
India. Mustard oil reigned supreme in India’s north (61%) and east (35%) zones, followed by
sunflower oil. In the west zone, soybean oil held a slight edge (28%) over mustard (25%)
and sunflower (25%) oils. The south zone presented a different picture, with sunflower oil
(44%) dominating, followed by groundnut oil (29%). These variations likely reflect traditional
culinary practices and locally available oilseeds. Additionally, the survey underscores the
influence of dietary choices. Non-vegetarians, comprising 64% of respondents, consumed
an average of 14.2 kg of oil per person annually, compared to the 12.6 kg average for
vegetarians. Understanding these consumption patterns and regional variations is crucial for
informed policy decisions. By tailoring interventions to address specific regional preferences 64Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
and dietary needs, India can optimize domestic oilseed production and achieve greater
self-sufficiency in edible oils.
Data from the National Sample Survey Organisation (NSSO) (Table 4.1 and Figure
4.1) reveals a significant rise in household demand for edible oils across India. Per capita
consumption in rural areas has nearly doubled, jumping from 4.44 kg/year in 1993-94 to
10.58 kg/year in 2022-23. Similarly, urban consumption has grown substantially, from 6.72 kg/
year in 1993-94 to 11.78 kg/year in 2022-23. This trend highlights the growing importance of
edible oils in the Indian diet. Interestingly, the choice of oil varies between rural and urban
areas. Mustard oil reigns supreme in rural sectors, accounting for approximately 45% of
consumption. In contrast, urban areas favour refined oils, such as sunflower and soybean oil,
which collectively hold a 47% share. This shift towards refined oils highlights substitutions
from traditional options like vanaspati and groundnut oil.
Table 4.1: Per capita consumption of different edible oils: Rural and Urban
Edible OilYear
Per capita consumption (kg/year)
RuralUrban
Groundnut Oil
1993-19941.442.88
1999-20001.442.76
2004-20050.841.92
2009-20100.651.51
2022-20230.250.57
Refined Oil2011-20122.724.80
Coconut Oil
2009-20100.190.21
2011-20120.180.19
2022-20230.160.34
Mustard Oil
1993-19942.041.80
1999-20002.883.0
2004-20052.642.40
2009-20103.442.76
2011-20123.652.90
2022-20234.793.46
Vanaspati
1993-19940.360.72
1999-20001.080.72
2004-20050.360.60
2009-20100.430.43
2011-20120.240.25
2022-20230.030.05
Edible Oil (Others)
1993-19940.601.32
1999-20001.082.04
2004-20051.683.00
2009-20102.924.89
2011-20120.831.13
2022-20230.390.58 65Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Edible OilYear
Per capita consumption (kg/year)
RuralUrban
Edible Oil (Total)
1993-19944.446.72
1999-20006.018.64
2004-20055.767.92
2009-20107.639.82
2011-20128.0910.24
2022-202310.5811.78
Source: Author’s compilation from NSSO rounds
Source: Author’s compilation from NSSO rounds
Figure 4.1: Per capita consumption of edible oil in kg/year:
Rural and Urban (1993-2022, NSSO Rounds)
Furthermore, India’s persistent demand for edible oil reveals a remarkable rise over
six decades from a per capita consumption perspective. Between 1960-61 and 1980-81,
consumption increased 1.2 times (from 3.2 kg/year in 1960-61 to 3.8 kg/ year in 1980-81).
This growth accelerated further, reaching 2.2 times between 1980-81 and 2000-01 (from
3.8 kg/year in 1980-81 to 8.2 kg/ year annum in 2000-01), and a staggering 2.4 times
from 2000-01 to recent times (8.2 kg/year in 2000-01 to 19.7 kg/year in 2020-21). This
escalating demand can be attributed to many factors, including changes in income, lifestyle
and evolving dietary patterns.
4.1.1 Change in Monthly Per Capita Consumption Expenditure Pattern: 1999-
2000 to 2022-23
The trend in the average Monthly Per Capita Expenditure (MPCE) in India’s rural and urban
areas since 1999 is shown in Table 4.2. In 1999-2000, the average MPCE in rural areas was
`486; in urban areas, it was `855. Over the years, there has significantly increased in average
MPCE, indicating higher spending power and improved living standards. By 2022-23, the
average MPCE in rural areas surged to `3,773; in urban areas, it reached `6,459 (HCES, 66Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
2022). This substantial rise reflects a notable improvement in purchasing capacity and
quality of life, particularly in urban areas where the average MPCE is considerably higher.
Table 4.2: Trend in level of average monthly per capita expenditure (1999-2022): Rural and Urban
Period (NSSO)
Average MPCE over different periods (`)
RuralUrban
1999-00486855
2004-055791,105
2009-101,0541,984
2011-121,4302,630
2022-233,7736,459
Source: Author’s compilation from NSSO rounds and HCES, 2022
Complementing the rise in MPCE (as shown in Table 4.2), Table 4.3 reveals a noteworthy shift
in dietary patterns across India. There has been a noticeable decline in the share of consumption
of cereals in both rural and urban areas of India from 1999-00 to 2022-23. In 1999-00, as
shown in Table 4.3, cereals accounted for 22.23% and 12.39% of the average MPCE in rural and
urban areas, respectively. However, by 2022-23, these figures dropped significantly to 4.91% in
rural areas and 3.64% in urban areas. This decline suggests a shift in dietary patterns, possibly
towards more diverse and processed food items. Conversely, the share of food items overall
fluctuated but generally maintained a higher percentage than cereals. In 1999-00, food items
constituted 59.4% and 48.06% of the average MPCE in rural and urban areas, respectively; by
2022-23, food items still constituted a significant portion of expenditure, at 46.38% in rural areas
and 39.17% in urban areas. This trend indicates an evolving consumption pattern in India, with
a growing preference for non-food items, possibly reflecting changes in lifestyle, income levels,
and urbanization.
Table 4.3: Trend in share of consumption of cereals and food items (1999-2022): Rural and Urban
RuralUrban
Share of cereals in
average MPCE (%)
Share of food in
average MPCE (%)
Share of cereals in
average MPCE (%)
Share of food in
average MPCE (%)
22.2359.412.3948.06
17.4553.119.6340.51
13.7756.988.1644.39
10.7552.96.6642.62
4.9146.383.6439.17
Source: Author’s compilation from NSSO rounds and HCES, 2022
Note: For the years 1999-00 & 2004-05, the percentage shares are based on MRP estimates and for the years
2009-10, 2011-12 and 2022-23, these are based on MMRP estimates.
Further, Table 4.4 showcases a compelling trend - a rising MPCE on edible oils in rural
and urban India. From 1999-00 to 2022-23, rural MPCE on edible oils witnessed a significant
jump, rising from `18.2 to ` 135.5. Similarly, urban areas exhibited a substantial increase,
with MPCE on edible oils increasing from `26.8 in 1999-00 to `153.1 by 2022-23. This data
aligns with the observed rise in overall MPCE (refer to Table 4.2) and reflects not only
rising incomes but also a potential shift in dietary patterns towards higher consumption of
edible oils, highlighting the critical need for strategic interventions to bridge the widening
gap between domestic production and consumption of edible oils. 67Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table 4.4: Trend in the level of average MPCE on Edible oils (1999-2022): Rural and Urban
Period (NSSO)
MPCE of Edible Oil
Rural (` )Urban (` )
1999-0018.226.8
2004-0525.736.4
2009-1038.952.8
2011-1253.570.0
2022-23135.5153.1
Source: Author’s compilation from NSSO rounds and HCES, 2022
4.2 Edible Oil Demand Projections
Edible oil demand projections for household consumption have been worked out following
three approaches. i.e., (i) Static / Household Approach, using the population projection
and the base year per capita consumption. This approach assumes short-term static
behaviour of consumption, (ii) Normative Approach, based on the normative requirement
as recommended by the Indian Council of Medical Research -National Institute of Nutrition
(ICMR-NIN), Hyderabad and (iii) Behaviouristic Approach, which is based on changes in
the behaviour of consumption on account of changing per capita income in a growing
economy, measured in terms of consumption / expenditure elasticities, per capita base
year consumption and income growth.
4.2.1. Static / Household Approach
In the static demand projection approach, population and base year consumption affecting the
demand have been considered. The projected population growth for India, as reported by the
World Bank, indicates a substantial increase from 1.41 billion in 2021 to 1.52 billion by 2030 and
further to 1.66 billion by 2047. This growth trajectory signifies a significant demographic shift.
The proportion of the urban population is anticipated to rise from 36% in 2023 to 51% by 2047
(Annexure- II).
The rising population is expected to continue driving edible oil demand in India. The Static/
Household Approach estimates projected demand to reach 29.8 million tons (MT) by 2030 and
32.6 MT by 2047. These projections are based on population growth forecasts and a base year
per capita consumption of 19.7 kg/year, translating to a total demand of 27.7 MT in 2021.
4.2.2. Normative Approach
This approach utilizes per capita consumption recommendations provided by the ICMR-NIN
to project future edible oil demand by 2047. This approach segments the population into
three categories based on activity level: sedentary (20%), moderate (37%), and heavy (43%),
based on research by the Indian Academy of Neurosciences. The sex ratio of 0.48 female
to 0.52 male is derived from previous population data. Dietary oil requirements, obtained
in grams per person per day (g/p/d) from the Working Group Report by the National
Institute of Nutrition, are converted to kilograms per person per year (kg/p/year) for further
analysis (Table 4.5). This methodology provides valuable insights into potential demand
based on recommended consumption levels and population demographics, allowing for a
comprehensive assessment of India’s future edible oil needs. 68Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table 4.5: Dietary Requirement of Edible Oil
Age and level of physical activity
Dietary Requirement
g/p/dkg/p/year
0-10 years18.56.75
10-15 years old child (Female)32.511.68
10-15 years old child (Male)37.513.68
Females (>15 years)
Sedentary20.07.30
Moderate25.09.13
Heavy30.010.95
Males (>15 years)
Sedentary25.09.13
Moderate30.010.95
Heavy40.014.60
Source: Recommended Dietary Allowance, Report of Expert Group 2020, National Institute of Nutrition
As shown in Table 4.5, ICMR-NIN’s daily edible oil intake recommendations vary by age,
activity level and gender. World Bank population projections for 2021 to 2047, categorized
by age group and gender (Table 4.6), are used in conjunction with the calculated oil
requirements to arrive at a demand forecast. While this approach offers valuable insights
for long-term edible oil security planning, it’s important to acknowledge that consumption
patterns may differ from recommended intake levels.
Table 4.6: Projected Population by Gender, Age Group and Activity
Year
All India population Gender, Age Group, and Activity (2021-2047, in millions)
0-10
years
10-15
years
age
Female
10-15
years
age
Male
Female more than 15 years of
age
Male more than 15 years of
age
SedentaryModerate HeavySedentaryModerate Heavy
2021232 59 65 102 188 219 108 199 231
2026 224 57 63 109 201 234 115 213 247
2030 219 54 59 116 214 249 122 226 263
2036 216 53 57 122 225 262 128 237 275
2041 210 53 56 127 235 273 133 246 285
2046 202 52 55 131 243 282 137 253 294
2047200 51 54 132 245 284 137 254 295
Source: Author’s computation based on World Bank population data and ICAR-NIN dietary recommendations
Further, Table 4.7 offers a granular view of edible oil demand patterns across various
demographic groups in India, revealing the evolving dynamics of dietary habits and lifestyle
choices (2021 to 2047). The data showcases total edible oil consumption by age, gender,
and activity level for 2021, amounting to 14.53 MT. Looking ahead, the Normative Approach
projects a rise in edible oil demand to 15.87 MT by 2030 and 17.35 MT by 2047 (Figure
4.3). This disaggregated approach provides valuable insights to comprehend the specific
demand patterns of different demographic groups. 69Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table 4.7: Projected Demand for Each Group and Total Demand (2021-2047, in MT)
Year
0-10
years
of
age
10-15
years
of age
Female
10-15
years
of age
Male
Demand (in MT)
Female more than 15 years
of age
Male more than 15 years of age
SedentaryModerateHeavySedentaryModerateHeavyTotal
20211.570.69 0.89 0.74 1.72 2.39 0.98 2.18 3.3814.53
20261.510.67 0.86 0.80 1.84 2.56 1.05 2.33 3.6115.23
20301.480.63 0.81 0.85 1.96 2.73 1.11 2.48 3.8415.87
20361.460.62 0.78 0.89 2.05 2.87 1.17 2.59 4.0216.44
20411.420.62 0.77 0.93 2.14 2.99 1.21 2.69 4.1716.92
20461.36 0.61 0.75 0.96 2.22 3.09 1.25 2.77 4.2917.30
20471.350.60 0.74 0.97 2.23 3.11 1.25 2.78 4.3117.35
Source: Author’s computation
Source: Author’s computation
Figure 4.3: Total normative demand for edible oils (2021-2047, in MT)
If the per capita consumption of edible oil recommended by the ICMR-NIN is followed,
it could potentially mitigate the need to import edible oil or rely on other countries for
supply. Encouraging people to adopt healthier consumption patterns aligned with the
recommended levels of physical activity and age, gender, and gender-based distribution is
a tribute to self-sufficiency in edible oil and improved public health outcomes. Establishing
awareness campaigns and educational initiatives to promote these guidelines could play a
significant role in achieving sustainable and health-conscious dietary habits for the future.
4.2.3. Behaviouristic Approach
The final approach for demand projection is the behavioural approach, which considers the
changing preferences of consumers on different food items and changes in income (i.e.,
expenditure). The demand Equation 4.1 is given below:
D
t
=D
0*Nt
(1+y
*
e)
t
Where, Dt is the household demand for a commodity in year t; D0 is the per capita
consumption of the commodity in the base year, y is growth in per capita income; e is the 70Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
expenditure elasticity of demand for the commodity; and Nt is the projected population in
the year t. Expenditure elasticities are important parameters for projecting future demand.
Expenditure elasticity varied widely across locations, income groups, and regions due to
changes in production environment, tastes, and preferences.
Understanding the demand structures and consumer behaviour is critical for informing
a wide range of development policies. As economic growth progresses, average per
capita income typically rises, leading to a decrease in the per capita consumption of
staple foods - a trend consistent with Engel’s Law (1857) i.e., the proportion of income
spent on food declines as average household income rises, and indicative of improved
welfare. Furthermore, urbanization drives diversification within the food basket, which, as
documented by Kumar (1997) and Rao (2000), enhances the quality of life by contributing to
better nutritional status and overall well-being of the population. Consumer demand theory
seeks to understand how rational consumers allocate a limited budget across various goods
when faced with different prices. This allocation process results in a specific consumption
bundle. Changes in income and relative prices lead to adjustments or diversification within
this bundle, reflected by the income and price elasticities of demand for different food
groups. Accurately estimating these elasticities and their projected changes is vital for
future policy decisions. Consequently, the chosen estimation technique is based on a
functional form that incorporates realistic assumptions about consumer behaviour, a two-
stage behaviouristic food demand modelling approach, i.e., the Quadratic Almost Ideal
Demand System (QUAIDS) model, builds upon the Almost Ideal Demand System (AIDS)
framework (Deaton & Muellbauer 1980) by incorporating a quadratic expenditure term as it
relaxes the linearity assumption of the AIDS in the expenditure function, acknowledging the
potential non-linear relationship between income and expenditure. This extension allows for
the modelling of non-linearities in Engel curves. Notably, the Engel curve for food exhibits
log-linearity and stability both over time and across societies (Banks et al., 1997; Beatty &
Larsen, 2005; Blundell et al. 1998; Leser, 1963; Yatchew, 2003). Due to their consistency
with consumer theory, exact aggregation properties, and ease of estimation, AIDS-based
approaches have become the preferred method for demand system estimation in the
literature. The suitability of the QUAIDS framework for modelling consumer preferences
has been empirically validated in numerous studies (e.g., Abdulai, 2002; Moro & Sckokai,
2000; Banks et al., 1997; Blundell & Robin, 1999; Fisher et al., 2001; Abdulai & Aubert, 2004;
Gould & Villarreal, 2006; Molina & Gil, 2005; Poi, 2002, 2008, and 2012; IMF, 2016).
This framework rests on a two-stage budgeting assumption, where consumers allocate
their income sequentially. In the first stage, consumers prioritize broad categories, such as
food versus non-food items. This translates to a choice between the budget allocated to
food and the remaining budget for all other goods and services. Consequently, the initial
stage of QUAIDS involves estimating a first-step budgeting equation. Here, the focus is on
how much of the total expenditure is dedicated to food, conditional on the consumption
of non-food categories. The non-linear relationship between income and food expenditure,
characterized by a decreasing share of income spent on food with rising income, is captured
through the inclusion of a quadratic expenditure term. Notably, as the model only considers
two broad expenditure categories - food and non-food - the adding-up restriction on 71Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
expenditure weights allows for simplified estimation using single-equation least squares
regression.
The second stage of the QUAIDS model delves into the intra-food allocation decisions.
Here, consumers make simultaneous choices regarding allocating their total food expenditure
across specific food items. This stage translates to estimating a system of simultaneous
equations within the QUAIDS framework, with each equation representing the demand for
a specific food item category. While independent demand equations for individual food
items may seem intuitive, can overlook crucial substitution and complementarity effects
between different food products. These effects can significantly impact the demand for
specific items. To address this limitation, a system of equations approach is employed within
the broader food category and allows for estimating demand for various food items while
accounting for their interdependencies. The two-stage budgeting framework, therefore,
leverages reasonable assumptions about consumer behaviour. These assumptions include
the separability of choices regarding food versus non-food consumption and the separability
of choices within the food category itself. This approach balances these simplifications with
the ability to capture important characteristics of demand for individual food items through
the system of equations.
The two-stage QUAIDS model employed here estimates food expenditure elasticity
for specific food items. This elasticity measures the responsiveness of consumer demand
(expenditure) for an item to changes in their total food budget. In simpler terms, it reflects
the perceived importance of that specific item within consumers’ food baskets.
While significant shifts in consumption expenditure and dietary patterns have likely
occurred in the past decade, existing elasticity estimates lack this crucial update. To address
this gap, this model adopts an alternative approach. It leverages Private Final Consumption
Expenditure (PFCE) data for the period 2013-14 to 2021-22 alongside Consumer Price Index
(CPI) data from the same timeframe. This combined dataset allows us to estimate demand/
expenditure elasticities for different food items, capturing the recent changes in consumption
expenditure patterns and their impact on edible oil demand. While not a direct replacement
for HCE data, this approach offers valuable insights into the evolving dynamics of edible
oil consumption in India.
The above data set categorizes expenditure on food into six key groups reflecting the
Indian household consumption basket: Cereals and Pulses (c1)1
4
, Eggs, Fish, and Meat (c2),
Milk and Milk products (c3), Vegetables and Fruits (c4), Oils and Fats (c5)
5
and Others
(i.e., Sugar, jam, honey, chocolate, confectionery and non-alcoholic beverages which include
coffee, tea and cocoa, mineral waters, soft drinks, fruit, and vegetable juices, etc.) (c6). This
categorization aligns with the available data but presents limitations, as data for cereals and
pulses is combined. Similarly, data for oils and fats is not disaggregated within PFCE and
CPI. Future research efforts could benefit from more granular data on these categories to
improve elasticity estimates, particularly for edible oils.
4. Since PFCE data is not available for cereals and pulses separately
5. Since PFCE and CPI data is not available for Oils and Fats separately, which is limitation of this study as expenditure elasticity has been measured for Oils
and fats altogether not edible oils separately 72Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
The estimated expenditure elasticities, categorized by food groups in Table 4.8, offer
valuable insights into consumer spending patterns. These elasticities, based on total food
expenditure, allow for the classification of food groups into three distinct categories. The first
category encompasses ‘high-income elasticity products’, including milk and milk products
(i.e., 1.6), eggs, fish and meat (i.e., 1.3), and “Others” (sugar, sweets, and non-alcoholic
beverages) (i.e., 1.7). These groups exhibit elasticity greater than 1, indicating that a rise in
total food expenditure will lead to a proportionally larger increase in spending on these
items. Notably, while oils and fats belong to this category, their elasticity is the lowest at
just above 1 (1.1), indicating a less pronounced increase in expenditure compared to other
products in this group. The second category consists of ‘unit income elasticity products’,
including fruits and vegetables (i.e., 1.0). For these items, expenditure is expected to rise
at a rate comparable to the overall increase in food spending. Finally, the third category
comprises ‘less-than-unity income elasticity products’, primarily cereals and pulses (i.e., 0.3).
These staples are likely to see a slower rise in expenditure relative to the growth in total
food spending.
Table 4.8: Food Expenditure Demand Elasticities: Second Budgeting Stage
Expenditure elasticity: with respect to total expenditure on food
c1: Cereals and pulses0.3
c2: Egg, Fish, and meat1.3
c3: Milk and milk products1.6
c4: Vegetables and Fruits1.0
c5: Oils and fats1.1
c6: Others (Sugar, jam, honey, chocolate, confectionery, and non-
alcoholic beverages, which include Coffee, tea and cocoa, Mineral
waters, soft drinks, fruit, and vegetable juices, etc.)
1.7
Source: Authors’ estimation
Engel’s Law posits a declining income share dedicated to food as incomes rise, and
our data (Tables 4.3 and 4.4) corroborates this notion. Expenditure on staples like cereals
and pulses exhibits a less-than-unity income elasticity, signifying a proportional decrease
in consumption with increasing income (Figure 4.4). This trend resonates with Bennett’s
Law (1941), reflecting a shift away from calorie-dense staples towards more nutrient-rich
and higher-value foods as incomes improve (Figures 4.5 to 4.8). Furthermore, our findings
coincide with India’s rising personal income and urbanization over the past decade. These
factors likely influence households to purchase more processed and packaged foods,
potentially impacting overall dietary patterns. Understanding these evolving consumption
patterns, with a growing demand for diverse food options, is essential for informing future
policy decisions. By recognizing this shift, specific policies can be envisioned that promote
balanced dietary choices, boost domestic production of essential food groups, and ensure
long-term food security for the nation. 73Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
.23
.24
.25
.26
.27
14.2 14.3 14.4 14.5 14.6
ln_Food_exp
95% CI Fitted values
X-axis: Logarithm of total expenditure on food
Y-axis: Cereals and pulses: predicted weight in the total food budget
Source: Authors’ estimation
Figure 4.4: Predicted Cereals and pulses expenditure weights with total expenditure on food
.09
.1
.11
.12
.13
14.2 14.3 14.4 14.5 14.6
ln_Food_exp
95% CI Fitted values
X-axis: Logarithm of total expenditure on food
Y-axis: Egg, Fish, and meat: predicted weight in the total food budget
Source: Authors’ estimation
Figure 4.5: Predicted Egg, Fish, and meat expenditure weights with total expenditure on food 74Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
.22
.225
.23
.235
.24
14.2 14.3 14.4 14.5 14.6
ln_Food_exp
95% CI Fitted values
X-axis: Logarithm of total expenditure on food
Y-axis: Milk and milk products: predicted weight in the total food budget
Source: Authors’ estimation
Figure 4.6: Predicted Milk and milk products expenditure weights with total expenditure on food
.274
.276
.278
.28
.282
.284
14.2 14.3 14.4 14.5 14.6
ln_Food_exp
95% CI Fitted values
X-axis: Logarithm of total expenditure on food
Y-axis: Vegetables and Fruits: predicted weight in the total food budget
Source: Authors’ estimation
Figure 4.7: Predicted Vegetables and Fruits expenditure weights with total expenditure on food 75Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
.054
.056
.058
.06
.062
.064
14.2 14.3 14.4 14.5 14.6
ln_Food_exp
95% CI Fitted values
X-axis: Logarithm of total expenditure on food
Y-axis: Oils and fats: predicted weight in the total food budget
Source: Authors’ estimation
Figure 4.8: Predicted Oils and fats expenditure weights with total expenditure on food
.066
.068
.07
.072
.074
.076
14.2 14.3 14.4 14.5 14.6
ln_Food_exp
95% CI Fitted values
X-axis: Logarithm of total expenditure on food
Y-axis: Others (Sugar, jam, honey, chocolate, and confectionery + Non-alcoholic beverages which include
Coffee, tea and cocoa, Mineral waters, soft drinks, fruit, and vegetable juices, etc): predicted weight in the
total food budget
Source: Authors’ estimation
Figure 4.9: Predicted others expenditure weights with total expenditure on food 76Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
This analysis employs a two-scenario framework to explore potential future trends
in edible oil consumption in India. Given growing concerns about excessive consumption
highlighted by organizations like the National Institute of Nutrition (NIN) and the World
Health Organization (WHO), these scenarios serve as consumption caps to assess future
demand trajectories. Scenario I reflect the average consumption observed in developed
countries (25.3 kg/person/year) based on OECD/FAO Agricultural Outlook (2023). Scenario
II, representing the highest consumption level, considers the United States at 40.3 kg/
person/year. It’s important to note that these figures represent vegetable consumption in
food only, excluding industrial usage.
These scenarios are then integrated into the demand estimation Equation (4.1) to
project future edible oil demand. The calculations utilize a base consumption level of 19.7
kg/person/year, a per capita income growth rate of 4.37% based on the Business as Usual
(BAU) scenario (reflecting the average Net National Income (NNI) per capita growth at
constant prices over the past decade), and an expenditure elasticity of edible oil derived
from the two-stage QUAIDS model.
The two-scenario framework employed here clearly shows India’s potential edible
oil demand trajectory. Under Scenario-I, which reflects the average consumption level
in developed countries (25.3 kg/person/year), edible oil demand is projected to reach
38.3 MT by 2030 and 41.9 MT by 2047 (Figure 4.10). Scenario-II, representing the highest
consumption level observed (40.3 kg/person/year in the United States), estimates a demand
of 45.5 MT by 2030 and a staggering 66.8 MT by 2047 (Figure 4.11). Furthermore, the
analysis suggests that India’s per capita consumption is expected to reach the Scenario-I
level (25.3 kg/person/year) by 2028 and the Scenario-II level (40.3 kg/person/year) by
2038.
Considering India’s aspirations of becoming a developed nation by 2047, this analysis
additionally explores edible oil demand under a High-Income Growth (HIG) scenario. To
achieve this ambitious target, economic growth acceleration to 7.6-9.0% is projected to be
necessary (RBI, 2023; PTI, 2023). In this HIG scenario, assuming an estimated 8% annual per
capita NNI growth, India’s edible oil demand is expected to reach a level of 25.3 kg/person/
year (Scenario-I) as early as 2025. This represents a three-year advancement compared
to the Business-As-Usual (BAU) situation. Furthermore, under the HIG scenario, demand is
projected to reach 40.3 kg/person/year (Scenario-II) by 2031, which is seven years earlier
than anticipated in the BAU situation. These projections highlight the significant impact
that rapid economic growth can have on edible oil demand in India. It’s important to note
that these figures of developed nations represent vegetable consumption in food only,
excluding industrial usage. 77Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta

Source: Authors’ estimation
Figure 4.10: Scenario-II: Total Demand for Edible Oil (MT)
Source: Authors’ estimation
Figure 4.11: Scenario-I: Total Demand for Edible Oil (MT)
4.3. Edible Oil Supply Projections to 2030 and 2047
A comprehensive approach utilizing various models and techniques was employed to
forecast India’s edible oil supply under a BAU scenario. Historical data on oilseed production,
obtained from the Ministry of Agriculture and Farmers Welfare (MoA&FW) for primary
sources of edible oil and ‘Agriculture Statistics at a Glance’ reports for secondary sources,
served as the foundation for this analysis. Univariate time series analysis formed the
core, with models like Autoregressive Integrated Moving Averages (ARIMA), Generalized 78Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Regression Neural Networks (GRNN), Extreme Learning Machines (ELM), and trend regressions
(linear and quadratic) applied to the data. Additionally, Holt’s Smoothing Techniques, Geometric
Mean Growth Rate (GMGR), and Average Annual Growth Rate (AAGR) were utilized. The model
demonstrating the best fit or producing the least error for each specific case was then chosen
to forecast oilseed production up to the year 2047.
This study expands upon existing oil crops production forecasts in India by delving
deeper than aggregate historical data. While conventional methods focus solely on aggregate
production, our approach takes a more granular look. We employ forecasting techniques not only
on the aggregate level data for nine major oilseeds (groundnut, soybean, rapeseed & mustard,
sunflower, sesame, nigerseed, safflower, castor, and linseed), but also on individual forecasts for
each of these oilseeds. Furthermore, forecasts are generated for five secondary oils (palm oil,
coconut oil, cottonseed oil, rice bran oil, and solvent-extracted oils & TBOs). This multi-tiered
forecasting approach offers valuable insights into the future production potential of various oil
crops across India.
The following sections present comprehensive national-level projections for India’s edible oil
supply until 2047. This analysis is categorized to provide granular insights for informed policy
decisions. First, we present aggregated projections for total production of nine primary oilseeds.
Following this, disaggregated national-level projections are provided for the individual production
of each of these nine primary oilseeds. Finally, the analysis offers national-level projections for
the individual production of five secondary oils.
4.3.1. National Level Projected Production of Nine Primary Oilseeds (based on
aggregated data) by 2030 and 2047
The Extreme Learning Machines (ELM) neural network model emerged as the most suitable
method for forecasting national-level production of nine primary oilseeds. This model leveraged
historical data from the period 1967-68 to 2021-22. The forecast suggests a steady increase in
production, reaching an estimated 43.2 MT by 2030 and 53.7 MT by 2047 (Figure 4.12), up
from 37.96 MT in 2021-22.
Source: Authors’ estimation based on data retrieved from MoA&FW
Figure 4.12: National Forecasted Primary Oilseeds Production (Based on Aggregate Level Data of
Nine Oilseeds 1967- 2045) 79Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
4.3.2. National Level Projected Production of Nine Primary Oilseeds
individually (based on Crop-wise data) by 2030 and 2047
Building upon the methodology outlined in Section 3.3, this analysis presents disaggregated
forecasts for individual primary oilseed production in India. Due to data inconsistencies,
the forecasting period for these individual oilseeds spans 1990-91 to 2021-22. Despite this
timeframe variation, the aggregated production estimates derived from these individual
forecasts (i.e., 42.8 MT by 2030 and 54.8 MT by 2047) closely align with the projections
based on the aggregate data (Figure 4.13). This convergence strengthens the validity of
both sets of estimations.
Source: Authors’ estimation based on data retrieved from MoA&FW
Figure 4.13: Forecasted Primary Oilseeds Production by each Oil Seeds
For a more detailed understanding of future production potential, individual crop-wise
projections for each of the nine primary oilseeds until 2047 are given in Figure 4.14. These
disaggregated forecasts empower the development of targeted interventions that address
the specific production challenges and opportunities associated with each oilseed variety.
By strategically allocating resources and implementing tailored support measures, India can
work towards optimizing the production potential of all nine oilseeds. 80Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta 81Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
82Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Source: Authors’ estimation based on data retrieved from MoA&FW
Figure 4.14: National Forecasted Primary Oilseed Production (1990-2047) 83Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
4.3.3. National Level Projected Production of Five Secondary Oils
individually (based on crop-wise data) by 2030 and 2047
The analysis extends to individual forecasts for five secondary oils: palm oil, coconut oil,
cottonseed oil, rice bran oil, and solvent-extracted oils & TBOs. Employing data from 2010-11
to 2021-22, the forecasts predict a steady rise in production, with the aggregate reaching
an estimated nearly 5 MT by 2030 and 12.14 MT by 2047 (Figure 4.15). This represents a
significant increase from the 3.6 MT production level recorded in 2021-22. These projections,
while positive, highlight the potential for further growth in the secondary oilseed sector.
By implementing targeted policies to incentivize investment, improve cultivation practices,
and address logistical bottlenecks, India can capitalize on this potential and diversify its
domestic edible oil production base.
Source: Authors’ estimation based on data retrieved from MoA&FW
Figure 4.15: National Forecasted Secondary Oils Production by each Oil
For a more nuanced understanding of future edible oil production trends, individual
projections for each of the five secondary oils (palm oil, coconut oil, cottonseed oil, rice bran
oil, and solvent extracted oils & TBOs) are presented in Figures 4.16. These disaggregated
forecasts provide valuable insights into the anticipated production trajectories of each
secondary oil variety. These trends alongside the overall secondary oil production forecast
and the primary oilseed projections may help to craft a comprehensive strategy to strengthen
domestic edible oil production. This multi-layered approach further benefits addressing the
specific opportunities and challenges associated with each oil crop, promoting a robust
domestic oil production system in India. 84Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
85Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Source: Authors’ estimation based on data retrieved from MoA&FW
Figure 4.16: National Forecasted Individual Secondary Oils Production
4.4 Edible Oils Demand-Supply Gap Analysis by 2030 and 2047
Recognizing a fundamental shortcoming in traditional methods that “applying a fixed norm
of gross output” for the oil recovery rate, this analysis adopts a more nuanced approach
to estimate India’s future edible oil supply. Prior studies often rely on a single standardized
extraction rate (i.e., a fixed norm of 28% of gross output for oil recovery rate from oilseeds),
which fails to account for the significant variability inherent across different oilseed varieties.
The approach employed a dual strategy, utilizing both a range of oil-to-oilseed conversion
factors and incorporating net availability data from the Solvent Extractors Association (SEA).
This data encompasses seed retention for sowing purposes, direct consumption, export
levels, and other pertinent factors. Furthermore, the average % share of net availability
for oil extraction over the last 3, 5, and 10 years was applied to account for potential
year-on-year fluctuations. This multi-step approach strengthens the comprehensiveness of
projections (presented in Table 4.9 in the BAU), which estimate the national-level edible oil
supply to reach 16 MT by 2030 and 26.7 MT by 2047 from 13.3 MT in 2021-22. However, it
is important to acknowledge that unforeseen circumstances or advancements in extraction 86Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
technology could influence future oil recovery rates.
Table 4.9: Projected Edible Oils Supply at the National Level by 2030-31 and 2047-48
Items
Projected Edible Oils Supply (MT)
2021-22 2030-312047-48
Groundnut1.401.602.20
Soybean2.602.602.70
Rapeseed & Mustard4.605.708.30
Sunflower0.100.050.01
Castor0.800.901.20
Niger seed0.007 0.0040.001
Safflower0.020.020.03
Sesame0.100.100.10
Linseed0.100.000.0
Edible Oil from Primary Sources 9.7011.114.6
Edible Oil from Secondary Sources 3.604.9612.14
Total Edible Oil13.316.026.7
Source: Authors’ estimation
The analysis reveals a concerning gap between India’s current edible oil demand and
supply. The existing shortfall stands at a significant 14.4 MT, with domestic production (i.e.,
13.3 MT) supplying less than half the national requirement (i.e., 27.7 MT). Projection based
on the Household Approach scenario, this gap persists, albeit at decreasing levels, reaching
an estimated 14.1 MT by 2030 and 5.9 MT by 2047 (Table 4.10). To bridge this critical gap
domestic edible oil production needs to increase by a factor of 2.3 times and 2.5 times by
2030 and 2047, respectively, compared to current levels.
The Normative Approach scenario, grounded in the recommended intake levels
established by ICMR-NIN, presents a contrasting outlook (Table 4.10). Under this scenario,
India is projected to achieve a surplus in edible oil supply, reaching 0.13 MT by 2030 and 9.35
MT by 2047. This significant surplus stands in stark contrast to the existing substantial gap.
The divergence highlights the potential impact of promoting healthy consumption habits
in mitigating the edible oil demand-supply challenge. Policy interventions that encourage
the adoption of ICMR-NIN’s recommended intake levels, coupled with strategies to boost
domestic edible oil production, can create a more sustainable and secure future for India’s
edible oil sector.
The Behaviouristic Approach presents a more concerning outlook, suggesting a
potential widening of the edible oil demand-supply gap (Table 4.10). Addressing this
substantial imbalance necessitates a significant and sustained increase in domestic edible
oil production. Under scenario I, the gap is projected to reach 22.3 MT by 2030 and 15.2
MT by 2047, albeit at a decreasing rate. To achieve this, oilseed output would need to
grow by a factor of 2.9 times and 3.2 times by 2030 and 2047, respectively, compared
to current levels. Under scenario II, the gap is projected to reach a staggering 29.5 MT
by 2030 and further escalate to 40 MT by 2047. To achieve equilibrium, oilseed output
would need to be amplified by a factor of 3.4 times and a significant 5.0 times by 2030 87Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
and 2047, respectively, compared to current levels.
Table 4.10: Projected Edible Oils Demand-Supply Gap at National Level by 2030 and 2047
Year
Household
Approach
Normative Approach
Behaviouristic
Approach
(Scenario-I)
Behaviouristic
Approach
(Scenario-II)
Supply (MT)
Demand (MT)
GAP (MT)
Supply (MT)
Demand (MT)
GAP (MT)
Supply (MT)
Demand (MT)
GAP (MT)
Supply (MT)
Demand (MT)
GAP (MT)
2030 16.030.1-14.116.015.87+0.1316.038.3-22.316.045.5 -29.5
2047 26.732.6-5.926.717.35+9.3526.741.9-15.226.766.8-40.0
Source: Authors’ estimation
The concerning projections presented here underscore the critical need for robust policy
interventions that address both sides of the edible oil equation: supply and demand. A multi-
pronged approach is essential for India to achieve long-term edible oil security and mitigate
the challenges facing this vital sector. Strategies focused on yield improvement, enhanced
oilseed processing efficiency, area expansion for oilseed crops, potential diversification into
new oilseed varieties, and the adaptation of advanced technologies can significantly reinforce
domestic production. In parallel, promoting healthy consumption practices aligned with the
ICMR-NIN recommendations can help to manage demand-side pressures. By implementing
a comprehensive strategy that tackles both production and consumption, India can work
towards bridging the edible oil gap and achieving self-sufficiency in this vital sector. 89Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta 89 Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA
89 Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA
89 Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
CHAPTER-V
STRATEGIES AND ROADMAP
TO ACHIEVE SELF-SUFFICIENCY
FOR ATMANIRBHARTA 91Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA
Achieving self-sufficiency (Atmanirbharta) in edible oils presents a critical national objective
for India. However, this goal necessitates a comprehensive strategy that tackles many
challenges across the entire edible oil value chain. A significant challenge lies in the rain-
fed production system, as 76% of the oilseed area is rain-fed, contributing to roughly
80% of total production. These rainfed areas are particularly vulnerable to environmental
challenges such as aberrant weather patterns. Compounding this challenge is the limited
expansion of irrigation coverage, which has only marginally increased by 4% over the past
decade (23% to 27%). Socio-economic factors amplify the demand for edible oils, including
population growth and rising living standards. To overcome these obstacles and achieve
self-sufficiency, a multi-pronged approach is required. This approach must encompass
strategies to enhance edible oil production, optimize yields, improve processing efficiency,
and establish robust distribution networks.
Figure 5.1 presents an inclusive strategy for accelerating growth and achieving self-
sufficiency (Atmanirbharta) in the Indian edible oil sector. This strategy is structured across
three key pillars: (i) Crop Retention and Diversification, (ii) Horizontal Expansion, and (iii)
Vertical Expansion. By implementing this multifaceted approach, India can unlock its full
potential for domestic production and secure its edible oil future.
Strategies for Accelerating Growth in Edible Oil towards goal of Atmanirbharta
Crop Retention and
Diversification Strategy
Horizontal Expansion Vertical Expansion
Quadrant Approach
(State-wise Clusters)
HIGH AREA
HIGH YIELD
LOW AREA
LOW YIELD
LOW AREA
HIGH YIELD
LOW AREA
LOW YIELD
Markov Chain Analysis
Approach for Major Oilseed
Crops
Technology Intervention
for Major Edible Oil Crops
Expansion of Oilseed crops in
Rice fallow areas
Expansion of Oil Palm
Plantation in Wastelands
Untapped Potential of
Secondary Sources of
Edible Oil
Figure 5.1 Strategies devised for accelerating growth in edible oil
STRATEGIES AND ROADMAP
TO ACHIEVE SELF-SUFFICIENCY
FOR ATMANIRBHARTA
Strategies for Accelerating Growth in Edible Oil towards goal of Atmanirbharta
Crop Retention and
Diversification Strategy
Horizontal Expansion Vertical Expansion
Quadrant Approach
(State-wise Clusters)
HIGH AREA
HIGH YIELD
LOW AREA
LOW YIELD
LOW AREA
HIGH YIELD
LOW AREA
LOW YIELD
Markov Chain Analysis
Approach for Major Oilseed
Crops
Technology Intervention
for Major Edible Oil Crops
Expansion of Oilseed crops in
Rice fallow areas
Expansion of Oil Palm
Plantation in Wastelands
Untapped Potential of
Secondary Sources of
Edible Oil 92Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA
The first pillar of the Atmanirbharta strategy emphasizes Crop Retention and
Diversification. This strategy leverages the Markov Chain Analysis Approach, a statistical
method that predicts future states based on current trends. By employing this tool,
stakeholders can identify optimal strategies for retaining existing oilseed farmers while
strategically diversifying the types of crops cultivated. This diversification strengthens
resilience against market volatility and environmental disruptions, fostering long-term
stability and sustainability within the edible oil sector.
The second and third pillars of the Atmanirbharta strategy focus on Horizontal and
Vertical Expansion. The second pillar, Horizontal Expansion Strategy, aims to increase
strategically the total area dedicated to cultivating edible oil crops. This strategy aims
to bring more land under cultivation for specific oilseeds. Potential avenues for achieving
this include reclaiming rice fallow lands and highly suitable wastelands
6
for transformation
through agroforestry, as well as promoting crop retention and diversification in regions that
currently focus on other agricultural crops. The third pillar, Vertical Expansion Strategy,
focuses on enhancing the yield of existing oilseed cultivation areas. This can be achieved
through improved farming practices, better-quality seeds, and the adoption of advanced
technologies.
Horizontal and Vertical Expansion Strategies derived from the State-wise Quadrant
Approach are shown in Table 5.1. This data-driven approach involves developing state-
level crop clusters using four quadrants [i.e., (i) High Area-High Yield (HA-HY), (ii) High
Area-Low Yield (HA-LY), (iii) Low Area-High Yield (LA-HY), and (iv) Low Area-Low Yield
(LA-LY)] for the oilseed crops cultivated in India. It used each state’s cultivated area and
yield performance data from 2017-18 to 2021-22 for the specific oilseed crops. High Area
is defined as above the national average area cultivated for a specific oilseed crop, while
Low Area is below the national average. High Yield is determined by exceeding the national
average yield for that crop, whereas Low Yield falls below the national average yield.
HA-HY clusters, having high area and high yields, should prioritize vertical expansion
strategies focused on maximizing yield against global leaders in oilseed production can
provide valuable insights for further improvement. Similarly, HA-LY clusters, characterized
by high area but lower yields, necessitate vertical expansion initiatives to enhance yield.
Here, benchmarking against India’s best performers states can be instrumental. Conversely,
LA-HY clusters, with lower cultivation area but pockets of high yield, present opportunities
for horizontal expansion to increase their oilseed footprint. These regions can also benefit
from benchmarking against national leaders to identify areas for further improvement in
cultivation practices. Finally, LA-LY clusters, with low cultivation area and low yields, require
a comprehensive approach combining both horizontal and vertical expansion strategies.
Benchmarking against the country’s top performers will be crucial for these clusters to
identify areas for improvement.
6. To assess the agroforestry suitability regimes in wastelands across the country, multi-thematic datasets on wastelands, Land Use Land Cover, waterbodies,
soil organic carbon & slope at 1:50,000 scale identified, and appropriate weightage applied, to carry out a national level overlay analysis (NITI Aayog 2024). 93Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA
Table 5.1: Quadrant strategy for horizontal and vertical expansion
Edible
Oil
Crop
Yield
HighLow
Area
High
High Area (>National average area);
and High Yield (> National average yield)
(Benchmark: Global Best Performer(s))
(Strategy: Vertical Expansion)
High Area (>National average area);
and Low Yield (< National average
yield)
(Benchmark: Country Best
Performer(s))
(Strategy: Vertical Expansion)
Low
Low Area (<National average area); and High
Yield (> National average yield)
(Benchmark: Country Best Performer(s))
(Strategy: Horizontal Expansion)
Low Area (<National average area); and
Low Yield (< National average yield)
(Benchmark: Country Best
Performer(s))
(Strategy: Horizontal + Vertical
Expansion)
In addition, Horizontal Expansion Strategy includes the Rice Fallow Area Expansion
Approach, significant potential lies in utilizing rice fallow lands for oilseed production
during the non-rice cropping season. By promoting suitable crop rotations and effective
water management practices and implementing targeted incentives and knowledge transfer
programs, farmers can be encouraged to cultivate favourable oilseed crops during these
fallow periods, effectively increasing overall land utilization and production capacity. These
combined efforts will lead to a geographically expansive and diversified edible oil production
landscape, contributing significantly to India’s self-sufficiency (Atmanirbharta) goals.
Complementing the state-wise quadrant strategy, a geographically targeted cluster-
based approach holds significant promise for accelerating edible oil sector growth. This
quadrant analysis will allow for customized interventions and help to optimize the resource
allocation by focusing on each cluster separately. In the HA-HY cluster, crop retention
programs incentivize farmers to maintain production, ensuring a stable domestic supply.
Conversely, in quadrants with lower existing oilseed production (particularly LA-LY cluster),
strategic diversification initiatives can be introduced. These initiatives involve cultivating
higher yielding oilseed varieties, fostering a more geographically diversified production
landscape. This targeted strategy, coupled with initiatives like the expansion of fallow
land cultivation, improved farming practices, ensuring seed quality and traceability, market
linkages with effective storage strategies, value addition through processing and refining
techniques, and advanced production technologies adoption, holds significant promise for
maximizing the impact of the Atmanirbharta strategy and fostering a resilient domestic
edible oil production system. 94Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
5.1. Crop Diversification and Retention in Major Oilseed States:
Markov Chain Model
This section highlights the structural changes observed in cropping patterns across key
edible oilseed producing states in India. To guide the development of effective strategies
for oilseed crop diversification and retention, a Transitional Probability Matrix (TPM) analysis
based on Markov Chain Model is used. This statistical method sheds light on the likelihood
of farmers shifting cultivation patterns from one oilseed crop to another over a significant
period. Time series data of the cultivation area dedicated to various crops were collected
from the Directorate of Economics and Statistics, Department of Agriculture, Cooperation
and Farmers Welfare, Ministry of Agriculture and Farmers’ Welfare and scrutinized for the
period spanning from 2000-01 to 2021-22. The analysis was conducted for the Kharif and
Rabi seasons separately.
The analysis focuses on nine key oilseed-producing states namely Andhra Pradesh,
Gujarat, Haryana, Rajasthan, Madhya Pradesh, Uttar Pradesh, Karnataka, Tamil Nadu,
and Maharashtra which collectively contribute over 90% of India’s total oilseed area and
production. By examining historical trends in crop transitions within these states, the TPM
provides valuable insights into crop substitution behavior among farmers. By understanding
the probabilities of crop replacement, can make more informed decisions about how to
manage their land for optimal crop yield and sustainability. Following the application of the
TPM analysis on nine major oilseed-producing states in India, the section below discusses
the summary results, with a focus on the retention rates of major oilseeds cultivated in
these states.
5.2 Crop Retention Rates
The retention rates of major oilseed crops in Indian states, along with the replacing crops,
are given in Table 5.2. Among the major oilseed crops, Groundnut cultivation exhibits
medium retention rates in various states (i.e., Gujarat, Andhra Pradesh), ranging from 43%
to 64% in Kharif season as well as in Tamil Nadu and Karnataka across both seasons.
Conversely, low retention rates are observed in Gujarat (Rabi), Rajasthan (Kharif), Madhya
Pradesh (Kharif) and Maharashtra. In Soybean, Madhya Pradesh and Rajasthan exhibit good
retention rates (72%), indicating a preference for continued Soybean cultivation in these
regions. In contrast, Gujarat and Karnataka show notably lower retention rates for Soybean
cultivation, suggesting a higher likelihood of farmers switching to other crops. Conversely,
Maharashtra falls in between with a retention rate of 38%, implying a moderate inclination
towards continuing Soybean cultivation.
Rapeseed & Mustard cultivation also shows varying retention rates across states,
with Uttar Pradesh demonstrating exceptionally high retention at 92%, indicating a strong
preference for continued cultivation. Similarly, Haryana (62%) and Rajasthan (50%) also
exhibit medium retention rates. In contrast, Gujarat shows a moderate retention rate of
40%, suggesting a somewhat lower inclination towards continuing Rapeseed & Mustard
cultivation. Cotton exhibits medium retention rates in regions such as Karnataka, Andhra
Pradesh, Haryana and Maharashtra. Sunflower cultivation demonstrates retention rate of
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 95Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
64% in Andhra Pradesh, while it maintains moderate retention levels in Maharashtra during
the Rabi season and in Karnataka during the Kharif season. However, it experiences zero
retention in Maharashtra during the Kharif season, as well as in Haryana and Karnataka
during the Rabi season.
Safflower cultivation exhibits a retention rate of 72% in Maharashtra, showcasing the
crop’s significant popularity and economic viability in the region. In contrast, Karnataka
experiences the lowest retention rate for safflower. In Gujarat (Kharif), Sesamum retains only
9% of its area, transitioning primarily to Cotton, Jowar, and Maize. Similarly, Uttar Pradesh
and Andhra Pradesh (Kharif) both see a low retention rate of 21%.
Castor retention rates vary from 46% to 60%, suggesting a more stable cultivation
pattern and indicating that a significant portion of Castor cultivation remains consistent
between seasons. Linseed shows 27% in Uttar Pradesh, with farmers predominantly shifting
to Lentil cultivation. Sunflower retains just 38% of its area in Maharashtra (Rabi), 64% in
Andhra Pradesh (Rabi) and 50% in Karnataka (Kharif).
Oilseed crops experiencing 0% retention rates across various states include Soybean
in Gujarat (Kharif) and Karnataka (Kharif), Mustard and Linseed in Madhya Pradesh (Rabi),
Sunflower in Maharashtra (Kharif), Haryana (Rabi), and Karnataka (Rabi), Safflower in
Karnataka (Rabi), and Sesamum in Tamil Nadu (Kharif). Additionally, Groundnut shows 0%
retention in Gujarat (Rabi), Madhya Pradesh (Kharif), Maharashtra, and Andhra Pradesh
(Rabi). To increase retention areas for these oilseeds, targeted interventions could include
providing financial incentives, enhancing agricultural extension services to educate farmers
on best practices, improving access to quality seeds, and investing in irrigation infrastructure
to mitigate water stress. Additionally, improving market linkages to ensure profitable returns
is crucial. Crop diversification can be done in these regions after identifying the crops that
are replacing oilseeds.
Table 5.2: Retention Rate of Major Oilseed Crops by Key States
State Season
Replaced Oilseed
Crops
Retention
Rate
Replacing Crops
Gujarat
Kharif
Castor46% Rice, Soybean
Groundnut64% Rice, Maize, Arhar
Soybean0%Castor
Sesamum9% Cotton, Jowar, Maize
Rabi
Groundnut0%Wheat
Rapeseed & Mustard 40% Moong, Wheat, Groundnut
Rajasthan
Kharif
Soybean72% Rice, Groundnut
Groundnut14%Moong
Castor60%Groundnut
Rabi Rapeseed & Mustard 50% Wheat, Barley
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 96Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
State Season
Replaced Oilseed
Crops
Retention
Rate
Replacing Crops
Madhya
Pradesh
Kharif
Soybean72% Rice, Arhar, Sesamum
Groundnut0%Soybean
Sesamum6%Urad
Rabi
Rapeseed & Mustard 0%Wheat, Gram
Linseed0%Lentil
Maharashtra
Kharif
Soybean38% Maize, Cotton
Groundnut0%Moong, Urad
Cotton27% Rice, Soybean
Sunflower0%Maize
Rabi
Safflower72%Sunflower
Sunflower38%Jowar
Groundnut0%Wheat
Haryana
Kharif Cotton47%Rice, Bajra
Rabi
Rapeseed & Mustard 62%Wheat
Sunflower0%Wheat
Andhra Pradesh
Kharif
Groundnut52% Arhar, Castor, Cotton
Castor51% Groundnuts, Rice
Cotton49% Arhar, Sesamum
Sesamum (Til) 21% Arhar, Castor
Rabi
Groundnut0%Jowar
Sunflower64%
Rice, Maize, Green Gram,
Groundnuts
Uttar Pradesh
Kharif Sesamum21% Bajra, Black gram
Rabi
Rapeseed & Mustard 92%Gram, Barlet
Linseed27%Lentil
Karnataka
Kharif
Groundnuts43% Bajra, Sunflower
Sunflower50% Rice, Groundnuts
Cotton56% Soybeans, Green Gram
Soybean0%Arhar
Rabi
Groundnuts57% Wheat, Rice, Safflower
Sunflower0%Gram
Safflower0%Sunflower
Tamil Nadu
Kharif
Groundnuts52% Rice, Sesamum
Sesamum0%Rice, Jowar
Rabi Groundnuts63%Rice
Source: Authors’ computation
5.2.1 Enhancing India’s Edible Oil Production Through Strategic Retention
of Oilseed Crops
Strategic retention of oilseed crops presents a promising avenue to significantly enhance
India’s edible oil production capacity and reduce dependence on imports. This approach has
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 97Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
the potential to significantly enhance production capacity in nine focus states. By focusing
solely on areas potentially lost to cereal cultivation, these states could see a substantial
increase of 20%, translating to an additional 7.36 MT of oilseeds production (Table 5.3).
This significant rise in production would translate to a notable reduction of 14.2% (or 2.1
MT) in India’s edible oil import dependence, effectively narrowing the demand-supply gap
estimated at 14.4 MT for the base year 2021-22. These findings underscore the strategic
importance of retaining oilseed cultivation and its potential to contribute significantly to
achieving self-sufficiency in edible oils. Further research may help to explore effective
mechanisms for incentivizing farmers to retain oilseed cultivation in these critical states.
Table 5.3: Oilseeds: Potential Production (MT) by Strategically
Retention of Oilseed Crops and Gap with Current Production
Oilseeds
Actual
Production
(2021-22)
(MT)
Potential Production
through Strategical
Retention of Oilseed
Crops (MT)
% Increase in
Production
through Strategi-
cal Retention of
Oilseed Crops
Gap between Poten-
tial and Actual
Production by
Strategical Reten-
tion of Oilseed
Crops (MT)
Groundnut 10.1412.05474.78
Soybean 12.9914.57445.67
Rapeseed &
Mustard
11.9615.7374.42
Sunflower 0.250.3400.1
Sesame 0.790.87420.33
Total36.1243.49207.36
Source: Authors estimations
5.3 Quadrant Strategy for Diversification and Accelerated Growth
This section explores the findings of a state-wise Quadrant Analysis conducted for each
major oil crop cultivated in India. This data-driven approach categorizes states into four
clusters (HA-HY, HA-LY, LA-HY and LA-LY) based on their current performance in both
horizontal (area) and vertical (yield) dimensions. This framework allows for the creation of
targeted interventions tailored to each state cluster, ultimately guiding a future roadmap
toward self-sufficiency in edible oils. By leveraging a combination of horizontal and vertical
expansion strategies within these clusters, the analysis facilitates targeted growth.
Table 5.4 below provides valuable insights into the national average yield (t/ha) and
cultivated area (Mha) for these crops from 2017-18 to 2022-23. Castor emerges with the
highest yield at 1.81 t/ha, closely trailed by groundnut at 1.77 t/ha. Mustard also demonstrates
a substantial yield of 1.45 t/ha. Soybean, sunflower, and safflower yield moderately, ranging
from 1.03 to 0.70 t/ha. Conversely, sesamum, linseed, and niger seed exhibit comparatively
lower yields. Regarding total cultivated area, soybean holds the largest share with 11.74
Mha, succeeded by mustard with 6.73 Mha among oilseeds. Groundnut and castor also
command noteworthy cultivated areas. Among the secondary oil crops, rice and cotton
hold substantial acreage with 45.07 Mha and 12.86 Mha followed by coconut (2.16 Mha).
Table 5.4: Area and Yield of Major Edible Oil Crops in India (2017-2022)
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 98Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Edible Oil CropsNational Yield (t/ha) Total Cultivated Area (Mha)
Soybean1.0311.74
Mustard1.456.73
Groundnut1.775.23
Sesamum0.461.59
Castor1.810.87
Sunflower0.880.25
Linseed0.610.21
Niger Seed0.310.15
Safflower0.700.06
Coconut9665 (in nuts/ha)2.16
Cotton0.5212.86
Rice2.7745.07
Source: Authors’ computation
To further optimize yield, high-performing Indian states identified should engage in
comparative benchmarking with the top global performers in each oilseed category. Table 5.5
provides valuable insights into the existing yield gap between India’s
highest-yielding state
and the global leader for each crop. By closing this gap through implementing targeted
strategies based on learning’s from global leaders, these high-performing Indian states can
significantly increase their output and contribute even more effectively to the nation’s edible
oil production goals.
Notably, global producers achieve higher yields than Indian oilseed crops primarily due to
the use of genetically modified (GM) and herbicide-tolerant varieties.
Table 5.5: Yield difference between the highest yielding Indian state and highest among world producer
Edible Oil Crops
High area-high yield state
of India
Highest Global Producer Country
in the World (2017-2022)
Yield
Difference
SoybeanMaharashtra (1.26 t/ ha) Brazil (3.2 t/ha) -1.94
RapeseedRajasthan (1.58 t/ ha) Canada (2.17 t/ha) -0.59
GroundnutGujarat (2.20 t/ ha)China (3.84 t/ha)-1.64
Sesamum West Bengal (0.82 t/ ha) Sudan (0.28 t/ha)0.54
CastorGujarat (2.0 t/ ha)India (1.76 t/ha)-
SunflowerOdisha (1.27 t/ ha)Ukraine (2.25 t/ha) -0.98
Linseed
Madhya Pradesh (0.67 t/
ha)
Russia (0.86 kg/ha) -0.19
Niger Seed Odisha (0.37 t/ ha)NANA
Safflower Karnataka (0.82 kg/ ha) Kazakhstan (0.71 t/ha) 0.11
CottonGujarat (0.55 t/ ha)China (5.52 t/ha) -4.97
RiceWest Bengal (2.94 t/ ha) China (7.03 t/ha) -4.09
Coconut Tamil Nadu (12210 nuts/ ha) Indonesia (NA)NA
Figures in parenthesis represents yield;
Source: Authors’ computation from MoAF&W
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 99Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
A significant opportunity exists to enhance productivity in India’s edible oil sector,
as evidenced by the yield difference between Indian states and global leaders. Crops like
soybean, rapeseed, groundnut, sunflower, linseed, cotton, and rice all demonstrate lower
yields in India compared to top global producers. For cotton, Gujarat’s yield is significantly
lower than China’s, with a 4.97 t/ha difference. West Bengal lags behind China in rice
production by 4.09 t/ha. Maharashtra’s soybean yield is 1.94 t/ha less than Brazil’s. Gujarat
also trails China in groundnut yield by 1.64 t/ha. Odisha’s sunflower yield is nearly 1.0 t/
ha less than Ukraine’s. Rajasthan’s rapeseed yield is 0.59 t/ha lowers than Canada’s, and
Madhya Pradesh’s linseed yield is slightly below Russia’s by 0.19 t/ha. These differences
indicate significant potential for yield improvement in Indian agriculture to match global
standards.
However, India exhibits strength in castor, niger seed, sesamum, coconut and safflower,
currently holding the position of the highest yield producer globally for these crops. By
focusing on interventions by the quadrant analysis and benchmarking exercises, India can
strategically address these yield differences.
5.3.1 State-wise Quadrant Strategy: Soybean
Quadrant analysis reveals Maharashtra as the sole state within India’s HA-HY cluster for
soybean cultivation (Table 5.6). This signifies Maharashtra’s well-established acreage and
yields for this crop. To maximize productivity in this region, a vertical expansion strategy
should be prioritized. Benchmarking against global leader(s) like the United States, Brazil,
and Argentina, who boast superior soybean yields, can be highly beneficial. These countries
have achieved significant advancements in seed technology, precision agriculture, irrigation
management, and integrated pest management systems apart from using GM-modified
varieties. By adopting learning from these leading producers, Maharashtra can identify areas
for improvement and implement targeted strategies to further optimize soybean cultivation
practices within the state.
Table 5.6: Area and Yield of Soybean in Indian States
Soybean
Yield (National Average: 1.03 t/ha)
HighLow
Area (National
Average:
0. 55 Mha)
High
MaharashtraMadhya Pradesh, Rajasthan
Low
Karnataka, Telangana, Gujarat, Nagaland,
Uttarakhand,
Arunachal Pradesh, Meghalaya, Andhra
Pradesh, Mizoram, Himachal Pradesh
West Bengal, Tripura, Sikkim,
Jharkhand, Manipur, Bihar,
Chhattisgarh, Uttar Pradesh
Source: Authors’ computation
Further, the quadrant analysis exposes opportunities for targeted interventions across other
clusters. States like Madhya Pradesh and Rajasthan, falling within HA-LY cluster, necessitate
vertical expansion initiative to enhance their soybean yield. Benchmarking against India’s best
performer(s), these states can identify and adopt best practices in areas like seed technology,
precision agriculture, and pest management. Conversely, states categorized as LA-HY cluster (i.e.,
Karnataka, Telangana, Gujarat, Nagaland, Uttarakhand, Arunachal Pradesh, Meghalaya, Andhra
Pradesh, Mizoram, Himachal Pradesh) present opportunities for horizontal expansion to increase
their soybean cultivation area. These states can also benefit from benchmarking against the national
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 100Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
leader(s) to identify areas for further improvement. Finally, states in the LA-LY cluster, such as West
Bengal, Uttar Pradesh, Sikkim, Jharkhand, Manipur, Bihar and Chhattisgarh require a comprehensive
strategy combining both horizontal and vertical expansion approaches. Benchmarking against
success of the country’s best performer(s) will be crucial for these states to identify areas for
improvement and implement effective strategies to boost both acreage and productivity.
To visualize the geographical distribution of soybean cultivation potential across India, state-
wise cluster map derived from the quadrant analysis is provided in Map 5.1. This map offers
valuable insights into the current performance of various states in terms of both horizontal (area)
and vertical (yield) dimensions of soybean cultivation.
Map 5.1: Soybean: State-wise Cluster
Building upon the soybean example, state-wise cluster maps (Map 5.2)
7
are provided
for other edible oil crops. By tailoring policy measures to address the unique challenges
and opportunities within each cluster, this cluster-based specific approach has the potential
to significantly enhance the effectiveness of efforts aimed at promoting production and
yield improvements across the edible oil sector. It is important to note that palm oil is not
included in the quadrant analysis due to limitations in the availability of consistent state-wise
yield data. However, given its significant contribution of about 59% to India’s total edible oil
imports, palm oil is considered separate section. A dedicated section later in this chapter
will address strategies for enhancing palm oil production and reducing import dependence.
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA
7. Detailed Quadrant strategy tables are provided in the Annexure-V 101Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 102Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA
Map 5.2. State-wise Clusters for Primary and Secondary Edible Oil Crops 103Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Following establishing state clusters through the quadrant analysis, Table 5.7 presents
a comprehensive strategy for horizontal and vertical expansion across various oil crops
cultivated in India. Table 5.7 serves as an actionable roadmap, effectively categorizing states
for each oil crop based on their specific requirements for horizontal and vertical expansion
strategies. (Annexure-V).
Table 5.7: Tailored Interventions for State-Specific Growth: A Multi-Crop Strategy Matrix
Edible Oil
Crops
Horizontal Expansion Vertical ExpansionHorizontal & Vertical Expansion
Soybean
Karnataka, Telangana,
Gujarat, Nagaland,
Uttarakhand,
Arunachal Pradesh,
Meghalaya, Andhra
Pradesh, Mizoram,
Himachal Pradesh
Madhya Pradesh,
Rajasthan
West Bengal, Tripura, Sikkim,
Jharkhand, Manipur, Bihar,
Chhattisgarh, Uttar Pradesh
Mustard and
Rapeseed
Gujarat, Punjab,
Telangana
Uttar Pradesh,
West Bengal,
Jharkhand, Assam
Bihar, Jammu & Kashmir,
Chhattisgarh, Manipur, Arunachal
Pradesh, Nagaland, Uttarakhand.,
Maharashtra, Meghalaya, Odisha,
Himachal Pradesh, Tripura, Delhi,
Sikkim, Andhra Pradesh, Karnataka,
Mizoram, Tamil Nadu
Groundnut
Telangana, West
Bengal, Punjab, Goa,
Puducherry
Andhra Pradesh,
Karnataka,
Madhya Pradesh,
Maharashtra
Uttar Pradesh, Odisha, Chhattisgarh,
Jharkhand, Haryana, Tripura,
Manipur, Uttarakhand, Nagaland,
Arunachal Pradesh, Bihar, Kerala,
Himachal Pradesh
Sesamum
Tamil Nadu, Karnataka,
Telangana, Assam,
Tripura, Nagaland,
Meghalaya, Arunachal
Pradesh, Haryana,
Bihar, Mizoram,
Puducherry
Madhya Pradesh,
Uttar Pradesh,
Rajasthan
Andhra Pradesh, Maharashtra,
Chhattisgarh, Odisha, Jharkhand,
Jammu & Kashmir
Punjab, Uttarakhand, Himachal
Pradesh, Kerala, Dadra & Nagar
Haveli
Castor NilRajasthan
Andhra Pradesh., Telangana,
Maharashtra, Odisha, Tamil Nadu,
Madhya Pradesh, Karnataka, Haryana,
Assam, Nagaland, Arunachal Pradesh,
Bihar, Jharkhand Meghalaya, West
Bengal
Sunflower
Haryana, Telangana,
Bihar, West Bengal,
Punjab, Uttar Pradesh,
Gujarat, Madhya
Pradesh, Rajasthan
Karnataka,
Maharashtra
Andhra Pradesh, Tamil Nadu,
Nagaland,
Arunachal Pradesh, Jharkhand,
Chhattisgarh
Linseed
Bihar, Rajasthan,
Nagaland,
Assam, Jammu &
Kashmir, Arunachal
Pradesh
Jharkhand,
Chhattisgarh
Odisha, Maharashtra, West Bengal,
Karnataka, Himachal Pradesh,
Meghalaya, Tripura
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 104Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Edible Oil
Crops
Horizontal Expansion Vertical ExpansionHorizontal & Vertical Expansion
Niger Seed
Assam, Andhra
Pradesh, Jharkhand,
Gujarat, West Bengal
Chhattisgarh Maharashtra, Karnataka
Safflower
Telangana, Madhya
Pradesh, Arunachal
Pradesh, West Bengal,
Bihar
Maharashtra
Jharkhand, Andhra Pradesh,
Odisha, Chhattisgarh
Cotton
Punjab, Kerala, Jammu
and Kashmir, Odisha
Maharashtra,
Telangana,
Haryana,
Karnataka, Madhya
Pradesh
West Bengal, Tamil Nadu,
Meghalaya, Chhattisgarh, Puducherry,
Uttar Pradesh, Nagaland, Tripura,
Mizoram, Assam
Rice
Chandigarh, Karnataka,
Tripura, Puducherry,
Delhi, Kerala
Uttar Pradesh,
Bihar, Madhya
Pradesh, Assam,
Jharkhand, Odisha,
Maharashtra,
Chhattisgarh
Meghalaya, Andaman and Nicobar
Islands, Rajasthan, Manipur, Gujarat,
Dadra and Nagar haveli, Jammu and
Kashmir, Himachal Pradesh, Sikkim,
Arunachal Pradesh, Mizoram, Daman
and Diu, Nagaland
Coconut
West Bengal,
Andhra Pradesh
Kerala, Karnataka
Tripura, Bihar, Chhattisgarh,
Nagaland, Assam, Gujarat,
Maharashtra, Odisha
Source: Authors’ computation on data from MoAF&W
5.4 Rabi rice fallow areas: Horizontal expansion of primary oilseeds
Rice follows, lowland Kharif sown rice areas that remain uncropped during Rabi (winter), represent
a significant potential for horizontal expansion in edible oilseed production. These fallows arise due
to various factors like early monsoon withdrawal leading to soil moisture stress at planting time of
winter crops, waterlogging, excessive moisture in November/December, lack of appropriate varieties
of winter crops for late planting, and socio-economic problems (NAAS, 2013; Ali and Kumar, 2009).
Strategic research focused on rice-fallow systems holds immense potential for maximizing total
cultivated land (Kar & Kumar, 2009). However, establishing a second crop during the Rabi (winter)
season presents challenges due to potential abiotic and biotic stresses encountered in the post-
rainy season (Kumar et al., 2018). Among the states, Madhya Pradesh and Chhattisgarh have the
highest combined area under rice fallow at 4.38 Mha (78.21%), followed by Bihar and Jharkhand
with 2.2 Mha (36.85%). West Bengal, Odisha, and Maharashtra also have significant areas under
rice fallow, while Assam, Uttar Pradesh, and Andhra Pradesh have comparatively smaller extents.
The total rice fallow area across all states amounts to 11.65 M ha.
Since leveraging rice fallows for oilseed cultivation presents a significant opportunity to
expand India’s domestic edible oil production identifying potential crops suitable for oilseed
cultivation in rice fallows is important. An overview of oilseed crops suitable for cultivation in
rice fallow areas across various Indian states is provided in the Table 5.8. For instance, Madhya
Pradesh and Chhattisgarh are well-suited for linseed, sesame, mustard, and toria, while Bihar
and Jharkhand offer a broader range encompassing linseed, sunflower, safflower, toria, yellow
surson, and mustard. West Bengal and Odisha also present a varied selection with groundnut,
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 105Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
linseed, sunflower, safflower, rapeseed, mustard, and toria being suitable choices. Maharashtra
suggests groundnut, linseed, sesame, sunflower, safflower, and mustard. Assam prioritizes toria
and linseed, while Uttar Pradesh offers sunflower, linseed, rapeseed, mustard, and toria as viable
choices. Lastly, Andhra Pradesh recommends groundnut, linseed, sesame, sunflower, safflower,
mustard, and banarasi rai.
Table 5.8: Potential crops suitable for rice fallow states
StatesCrops
MP + Chhattisgarh Linseed, Sesame, Mustard & Toria
Bihar + Jharkhand Linseed, Sunflower, Safflower, Toria, Yellow Surson & Mustard
West BengalGroundnut, Linseed, Sunflower, Safflower, Rapeseed, Mustard & Toria
Odisha
Groundnut, Linseed, Sesame, Sunflower, Safflower, Rapeseed, Mustard & Toria
MaharashtraGroundnut, Linseed, Sesame, Sunflower, Safflower & Mustard
AssamToria, Linseed
Uttar PradeshSunflower, Linseed, Rapeseed, Mustard & Toria
Andhra Pradesh Groundnut, Linseed, Sesame, Sunflower, Safflower, Mustard & Banarasi Rai
Source: Author’s compilation from research studies
Since rice fallows can accommodate millets, pulses, and oilseed crops, determining the optimal
mix of these crops has become a pressing concern, especially with government intervention
emphasizing the cultivation of all three. The aforementioned Table 5.8 highlights suitable oilseed
options for specific regions. The total rice fallow area is further divided into three: one-third each
for millets, pulses, and oilseeds. However, for an effective comparison of oilseed crops, their
productivity must be evaluated.
Utilizing just one-third of the total rice fallow area across ten states for oilseed cultivation
has the potential to significantly enhance domestic production. Estimates suggest a potential
increase of up to 3.12 MT in oilseed output. This statistic underscores the immense potential of
these currently fallow lands. By implementing efficient management practices, these areas can be
transformed into significant contributors to India’s overall agricultural output and play a crucial
role in the nation’s journey towards edible oil self-sufficiency.
Leveraging state-specific crop suitability, significant potential exists for enhancing oilseed
production across various regions. In Madhya Pradesh and Chhattisgarh, cultivation of linseed,
sesame, and mustard could increase total output to 0.85 MT (Table 5.9). Similarly, Bihar and
Jharkhand hold the potential to reach 0.62 MT by introducing linseed, sunflower, safflower, and
mustard. West Bengal and Odisha also present promising opportunities. With groundnut, linseed,
sesame, sunflower, safflower, and mustard cultivation, West Bengal’s production could rise to 0.68
MT, while Odisha’s output could reach 0.32 MT. By strategically cultivating linseed and mustard
in rice fallows, Assam’s oilseed output could increase to 0.11 MT. Uttar Pradesh, with its suitability
for linseed, sunflower, and mustard, has the potential to achieve a production boost of up to 0.40
MT. Andhra Pradesh can similarly leverage rice fallows for oilseed production, with groundnut,
sesame, sunflower, safflower, and mustard identified as suitable options, potentially elevating the
state’s yield to 0.06 MT.
In ten focus states, this approach has the potential to increase edible oil production by an
additional 1.03 MT, representing a significant 7.1% reduction in India’s import reliance or demand-
supply gap. This finding highlights the potential
of rice fallows to significantly enhance India’s
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 106Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
overall production capacity and reduce dependence on imports. To ensure the economic viability
and large-scale implementation of this strategy across the potential states, exploration of the
economic feasibility of large-scale cultiv
ation and identification of the optimal crop selection
for different regions is critical.
Table 5.9: Potential oilseed production from utilized rice fallow areas in selected states
States
Area Under
Rice Fallow
(Rabi) (Mha)
Rice Fallow
Area (Mha)
available for
Oilseed
Cultivation
(1/3)
Suitable
crops
Yield, t/ha
Potential
Production
utilizing
Rice fallow
(MT)(2017-2022)
MP + Chhattisgarh 4.38 1.46
Linseed
Madhya Pradesh = 0.67
0.24
Chhattisgarh = 0.30
Sesame
Madhya Pradesh = 0.15
0.14
Chhattisgarh = 0.41
Mustard
Madhya Pradesh = 1.49
0.47
Chhattisgarh = 0.46
Bihar + Jharkhand 2.2 0.73
Linseed
Bihar = 0.84
0.13
Jharkhand= 0.58
Sunflower
Bihar =1.43
0.18
Jharkhand=0.54
Safflower
Bihar =0.78
0.12
Jharkhand=0.54
Mustard
Bihar =1.22
0.18
Jharkhand=0.78
West Bengal1.72 0.57
Groundnut 2.460.24
Linseed0.40.04
Sesame0.850.08
Sunflower 1.180.11
Safflower 0.970.09
Mustard1.210.12
Odisha1.22 0.41
Groundnut 1.670.11
Linseed 0.490.03
Sesame0.260.02
Sunflower 1.280.09
Safflower 0.740.05
Mustard0.310.02
Maharashtra0.63 0.21
Groundnut1.18 0.04
Linseed 0.340.01
Sesame0.210.01
Sunflower 0.420.01
Safflower 0.670.02
Mustard0.340.01
Assam0.54 0.18
Linseed0.610.05
Mustard0.660.06
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 107Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
States
Area Under
Rice Fallow
(Rabi) (Mha)
Rice Fallow
Area (Mha)
available for
Oilseed
Cultivation
(1/3)
Suitable
crops
Yield, t/ha
Potential
Production
utilizing
Rice fallow
(MT)(2017-2022)
Uttar Pradesh 0.35 0.12
Linseed 0.640.07
Sunflower 1.380.16
Mustard1.410.16
Andhra Pradesh 0.31 0.1
Groundnut 0.960.02
Sesame0.270.01
Sunflower 0.780.02
Safflower 0.570.01
Mustard0.490.01
Total oilseed
production
11.65 3.88 3.12
Source: Author’s calculation
5.5 Technological Interventions: Vertical Expansion of Primary
Oilseeds
Frontline demonstrations across various oilseed crops indicate that advanced and improved
technological interventions and effective and efficient management practices (i.e., crop
management, pest and disease control, fertilizer application) can significantly improve
productivity.
The significant yield gap between current farmer practices and improved technologies
presents a tremendous opportunity to increase domestic edible oil production in India.
Frontline demonstrations across various oilseed crops have confirmed this potential. By
adopting advanced and improved technological interventions (Figure 5.2), coupled with
effective management practices (i.e., crop and water management, pest and disease
control, fertilizer application), India can significantly enhance oil crop yields. Improved
seed varieties, modern farm machinery, and optimal agronomic practices all contribute to
increased productivity. For instance, implementing efficient crop management strategies like
crop rotation, timely planting, effective weed control, proper irrigation practices, balanced
application of nutrients, and robust pest protection can show substantial results. Continuous
cultivation without crop rotation depletes soil nutrients and increases pest susceptibility,
leading to yield losses of up to 40%. Improved pest and disease management practices
are crucial to addressing the challenge of over major diseases and pests affecting oilseed
crops, where resistant sources are often limited. Finally, fertilizer management requires
careful consideration of residual effects (phosphorus, potassium, and sulphur), particularly
in intercropping systems, to ensure that the nutrient needs of both primary and secondary
crops are met, ultimately enhancing overall system productivity.
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ooff aanndd SSeeeedd RRaattee
((SSeeeedd TTrraacceeaabbiilliittyy
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Figure 5.2: Technological Interventions
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 108Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
The results of 23,118 frontline demonstrations (FLDs) during 2010-2015 conducted on
nine oilseed crops under real farm situations in different agro-ecological conditions of India
over a period of five years [FLDs conducted by National Mission on Oilseeds and Oil Palm
(NMOOP)]
8
, revealed a significant yield gap between current farmer practices and Improved
Technologies (IT)
9
for nine key oilseed crops
10
. This gap ranged from 12% in castor to a
substantial 96% in sunflower (Table 5.10). By bridging this gap through widespread adoption
of existing, proven technologies, domestic oilseed production could be significantly increased
by an estimated 33% (i.e., 12.5 MT). This not only translates to 2.8 MT reduction (i.e., 19.3% of
the 14.4 MT demand-supply gap) in India’s dependence on edible oil imports but also enhances
profitability for oilseed farmers, promoting a more self-sufficient and resilient agricultural
sector. Achieving self-sufficiency in edible oil production necessitates the implementation of a
dedicated program that incorporates a comprehensive set of improved technologies, including
advanced seed varieties, modern farm machinery, high-quality planting seeds, and optimal
agronomic practices. For instance, data from the All India Coordinated Research Projects
(AICRPs) and field demonstrations conducted by ICAR-IISR suggest that soybean yield has
the potential to reach 2 t/ha. Maintaining current soybean acreage under this scenario could
result in a production of 24 MT of soybeans by 2035, translating to an additional 4.4 MT
of soybean oil. Furthermore, with a nationwide soybean yield of 2 t/ha, domestic oilseed
production could increase by a further 13% (i.e., 4.93 MT) from its current level. This translates
to a cumulative reduction of 25.7% demand-supply gap, India’s dependence on edible oil
imports. These figures underscore the transformative potential of technological advancements
in bridging the edible oil gap and achieving self-sufficiency for India.
Table 5.10: Oilseeds Potential Yield & Production through Improved
Technology (IT) Adoption and Gap with Current Production
Oilseeds
National
Average
Yield (t/ha)
(2017/18-
2021/22)
Improved
Technolo-
gy Yield
(t/ha)
Potential
Increase of
Yield
Adopting
Improved
Technology
(%)
Actual
Production
(2021-22)
(MT)
Potential
Production
Adopting
Improved
Technology
(MT)
Gap
between
Potential
and Actual
Produc-
tion (MT)
Groundnut1.77 2.26 28 10.14 12.98 2.84
Soybean*1.04 2 92 12.99 24.94 11.95
Rapeseed &
Mustard
1.46 1.69 16 11.96 13.87 1.91
Sunflower0.89 1.74 96 0.25 0.49 0.24
Sesame0.47 0.54 15 1.62 1.87 0.25
Safflower0.7 1.06 51 0.03 0.05 0.02
Niger0.31 0.41 30 0.06 0.08 0.02
Castor1.81 2.03 12 0.79 0.88 0.09
Linseed0.6 1.09 81 0.13 0.24 0.11
TotalNA NA NA 37.96 55.39 17.43
Source: Authors’ estimations based on the results of FLDs conducted by the National
Mission on Oilseeds and Oil Palm (NMOOP)
Note: *Based on data from the All India Coordinated Research Projects (AICRPs) and FLDs (ICAR-IISR)
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA
8. The major objective of Front-Line Demonstrations (FLDs) is to demonstrate the productivity potentials and profitability of the latest and improved oilseed
production technologies under real farm conditions.
9. Use of healthy and disease tolerant seeds, seed treatment, timely sowing, right method of sowing, timely weeding, integrated pest management (IPM),
recommended spacing, improved varieties and hybrids, recommended crop sequence, application of gypsum, application of sulfur and boron, spraying of
cycocel, integrated nutrient management (INM), integrated weed management (IWM), and integrated water management.
10. https://nfsm.gov.in/ReadyReckoner/NMOOP/NMOOPVol1.pdf 109Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
5.5.1 Key Hotspot Areas Requiring Urgent Technological Integration
To guide targeted technology dissemination efforts, key hotspot areas requiring immediate
interventions have been identified and presented in Map 5.3 (A detailed list of Districts /
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA
Source: IIOR, Hyderabad
Map 5.3: Key Hotspot Areas Requiring Urgent 110Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Divisions / Regions is provided in Annexure-III). Strategically focusing on technology infusion
within these hotspots, may accelerate the adoption of improved practices and maximize
the impact on overall domestic oilseed production.
5.5.2 Strengthening the Foundation: Seeds and Processing Infrastructure
Beyond advanced technologies, optimizing seed utilization and processing capabilities
are critical aspects of strengthening the foundation for edible oil self-sufficiency. Studies
indicate that high-quality seeds alone can contribute significantly (15-20%) to increased
production, with the potential to reach even higher levels (45%) when combined with
efficient management of other agricultural inputs (Seednet.gov.in). However, the current
Seed Replacement Ratio (SRR) falls short of the target of 80-85%, ranging from 25% in
groundnut to 62% in rapeseed mustard (Table 5.11), hindering overall yield as highlighted by
the National Seed Corporation (NSC). Strategies to improve seed availability and encourage
farmer adoption of these improved varieties are essential.
Table 5.11: Certified/quality SRR of oilseed crops (in %) from 2013-14 to 2021-22
Crop
2013-
14
2014-
15
2015-
16
2016-
17
2017
-18
2018-
19
2019-
20
2020-
21
2021-
22
Groundnut 25.38 23.65 23.56 25.24 23.53 22.44 26.7124.24 25.02
Rapeseed &
Mustard
51.2854.56 62.2 68.03 54.86 52.4160.64 57.36 62.96
Sesame 23.62 19.4830.92 42.36 37.44 39.54 43.64 42.89 46.12
Sunflower 86.29 96.32 86.2 30.67 32.23 30.27 43.07 47.36 39.43
Soybean 37.46 30.48 37.74 38.1739.92 37.45 41.04 34.2136.84
Castor 41.06 42.94 54.12 80.8 95.4 54.04 61.3156.23 59.33
Safflower 32.9129.05 29.52 29.32 26.58 36.74 33.82 21.46 32.63
Source: Crop Science Division, Indian Council of Agricultural Research
Further, the Indian vegetable oil sector also presents an opportunity for improvement.
Currently characterized by a large number of small-scale, low-technology plants with
substantial excess capacity, this sector utilizes only 30% of its edible oil refining capacity
(Table 5.12). Modernizing existing mills and strategically investing in processing infrastructure
will be instrumental in improving efficiency and minimizing waste. By addressing these
foundational challenges alongside technological advancements, India can unlock the full
potential of its domestic edible oil production capabilities.
Table 5.12: Present status of Indian Vegetable oil industry
S. No. CategoryNo. of
units
Annual capacity
(MT)
Capacity utilization
(%)
1 Oil Mills (Crushing Units) 15,000 3620-30
2 Solvent Extraction Plants 6003140
3 Vegetable Oil Refineries 6503050
4 Vanaspati (Hydrogenated Units) 250340
5Feed units125 6845
Source: SEA data bank
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 111Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
5.6: The Potential of Secondary Edible Oils
While optimizing primary oilseed production through horizontal and vertical expansion
strategies holds promise, achieving self-sufficiency in edible oils demands a more diversified
approach. This necessitates exploring the untapped potential of secondary edible oil sources.
While strategic interventions for primary oilseeds including crop diversification and retention
of cultivated areas, efficient rice fallows utilization, well-organized management (i.e., crop,
pest & disease, and fertilizers), and improved or advanced technologies hold promise, they
represent only one facet of a comprehensive approach. The focus on primary oilseeds only
has the potential to increase total edible oil production by 6.8 MT, leading to a significant
47% reduction in the estimated demand-supply gap of base year or import dependence.
However, unlocking the potential of secondary edible oils with substantial production
potential is crucial.
The following sections will explore opportunities and strategies associated with
secondary edible oils, a relatively untapped domestic resource with substantial production
potential. Palm oil with its vast areas of suitable yet unutilized land for potential cultivation
and its inherently high yield can play significantly in augmenting domestic production and
reducing import reliance. By strategically optimizing both primary and secondary sources
alongside targeted palm oil cultivation development, India can significantly strengthen and
diversify its edible oil sector and progress towards self-sufficiency.
Amongst the secondary sources of edible oil, rice bran oil stands out for its rising
popularity among urban consumers due to its perceived health benefits, including reducing
the risk of heart disease and type 2 diabetes. Rice bran, constituting approximately 8.5% of
total rice production with 17% oil content, offers an estimated potential of 1.9 MT of edible
oil, with an untapped reserve of 0.85 MT. This translates to a potential 5.9 % reduction in the
demand-supply gap. Similarly, cottonseed presents a promising avenue, with an untapped
potential of about 1.4 MT of additional edible oil production. This untapped potential from
cottonseed could contribute to a further 9.7% reduction in the edible oil demand-supply
gap or country’s import dependence.
5.6.1. Prioritizing Palm Oil: A Strategic Approach
India’s focus on horizontal expansion for oil palm cultivation is a strategic imperative in
the government’s on-going efforts to enhance domestic edible oil production and reduce
import reliance. This strategy has yielded significant results. Over the past three decades,
the oil palm cultivation area has witnessed a remarkable expansion, growing from a mere
8,585 hectares in 1991-92 to 0.37 Mha in 2021-22. This substantial increase in cultivated area
has directly translated into a notable rise in the production of Fresh Fruit Bunches (FFBs)
and Crude Palm Oil (CPO).
While Andhra Pradesh, Telangana, and Kerala currently dominate oil palm production,
contributing to 98% of the national total, the landscape is evolving. States like Karnataka,
Tamil Nadu, Odisha, Gujarat, and Mizoram also boast substantial cultivated areas. Furthermore,
recent initiatives from Government of India in North-East (NE) states such as Arunachal
Pradesh, Assam, Manipur, and Nagaland highlight a growing nationwide interest in oil palm
plantation programs. These developments suggest a promising trajectory for geographically
diversified palm oil production in India. A reassessment by the ICAR-Indian Institute of Oil
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 112Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Palm Research (IIOPR) in 2020 identified a substantial 2.8 Mha of land suitable for oil palm
cultivation across India (Figure 5.3). This potential is distributed between general states (1.84
Mha) and NE states (0.96 Mha). However, current NE coverage stands at a mere 0.004
Mha, highlighting a significant underutilization of this region’s potential.
Source: ICAR-IIOPR, 2020
Figure 5.3: Potential Area (ICAR- IIOPR Reassessment committee,
2020) and achieved area (up to March 2021) of palm in India
Oil palm cultivation offers a strategic advantage in terms of yield. A detailed analysis
reveals that while traditional oilseeds require a land area of 15.80 Mha to produce 4 MT of
oil, the same quantity of palm oil can be produced from just 1 Mha. In simpler terms, 1 Mha
dedicated to oil palm cultivation yields the equivalent output of over 15 Mha under traditional
oilseeds.
11
Furthermore, with quality planting materials, irrigation and proper management,
oil palm has the potential to produce 20-25 MT fresh fruit bunches (FFBs) per ha after
attaining the age of 8-9 years. This translates to a potential output of 4-5 t/ha of palm oil
and 0.4-0.5 t/ha of palm kernel oil (PKO), 4.5 times the yield of other traditional oilseeds,
on average. Through repeated crossing and selection for a period of three decades, India
has achieved a stage of third-generation planting material with 15-20% improvement in FFB
yield, and 5-6 t/ha of oil annually
12
.
Oil palm’s significant yield advantage, coupled with efficient land utilization, solidifies its
position as a strategic crop for boosting domestic edible oil production. Therefore, prioritizing
horizontal expansion efforts for oil palm cultivation is crucial for India’s journey towards self-
sufficiency (Atmanirbharta). Efforts should focus on capitalizing on the substantial untapped
potential identified by ICAR-IIOPR in the 284 districts, which estimates an additional 2.43
Mha of land across India for the oil palm cultivation. Furthermore, tactically utilizing two
thirds of the highly suitable areas of wastelands located in ICAR-IIOPR identified districts
(i.e., 6.18 Mha ) with the target of 0.34 Mha annually across the country for the next 18
years till 2042, presents a significant opportunity for further horizontal expansion (Map 5.4).
A strategic approach combining horizontal and vertical expansion, leveraging the untapped
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA
11. https://iiopr.icar.gov.in/pdf/vision2050.pdf
12. https://nfsm.gov.in/Guidelines/NMEO-OPGUIEDELINES.pdf 113Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
potential, has the potential to increase total edible oil production by 9.7 MT (from 2.43
Mha) and 24.7 MT from utilizing highly suitable areas of wastelands (i.e., 6.18 Mha) with
a conventional yield assumption of 4 t/ha. Palm oil alone, through targeted expansion in
these identified areas, can potentially increase a staggering 34.4 MT of edible oil, making
a substantial stride towards closing the existing demand-supply gap.
Beyond boosting domestic production and reducing import dependence, the NMEO-
OP scheme also holds the potential to benefit oil palm farmers through increased capital
investment, job creation, and improved incomes (Annexure-VII). By prioritizing oil palm
expansion and efficiently implementing strategic initiatives like NMEO-OP, India can make
significant strides toward achieving Atmanirbharta in the edible oil sector.
Map 5.4: District wise Highly Suitable Areas from Wastelands for Palm Oil Cultivation
5.7 Potential Increase in Edible Oil Production through Strategic
Interventions
India’s rising edible oil import dependence, reaching a staggering 16.5 MT in 2022-23,
necessitates a multi-pronged strategy to achieve self-sufficiency (Atmanirbharta) in this
sector. With domestic production currently meeting only 43% of the nation’s needs, the
remaining 57 % is met through imports. However, the outlined strategies and interventions,
encompassing both horizontal and vertical expansion approaches, offer a vibrant path towards
reducing this import dependence. By implementing these strategies and interventions in a
well-coordinated manner, India has the potential to significantly increase domestic edible
oil production, to an estimated increase of 43.5 MT in edible oil production as detailed in
Table 5.13. This substantial increase has the potential to not only bridge the import gap
but also position India on a trajectory towards self-sufficiency in edible oils.
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 114Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table 5.13: Potential Increase in Edible Oil Production through Strategic Interventions (MT)
Oil Crops
Potential Increase in Edible Oil Production (MT)
Strategic Crop Diversifi-
cation and Retention
Horizontal Expansion
(efficient rice fallows
utilization)
Vertical Expansion
(improved or advanced
technologies and
well-organized manage-
ment)
Groundnut 0.260.060.39
Soybean 0.31NA2.35
Rapeseed &
Mustard
1.450.40.74
Sunflower 0.020.220.09
Castor NANA0.12
Nigerseed NANA0.003
Safflower NA0.090.01
Sesame 0.020.050.02
Linseed NA0.230.04
Primary Total2.11.033.7
Palm oilNA34.4
Coconut NANANA
Cottonseed NA1.4
Rice bran NA0.85
Secondary
Total
NA36.7
Grand Total43.5
Source: Authors’ estimations
The outlined strategies for increasing domestic edible oil production through strategic
interventions hold immense potential. By 2030 and 2047, these interventions could lead to
a projected edible oil supply of 36.2 MT and 70.2 MT, respectively (Table 5.14), achieving
self-sufficiency under the Normative Approach and the Household Approach. In fact, these
scenarios project a surplus in edible oil supply in both approaches – 20.3 MT and 52.8 MT
under the Normative Approach and 6.1 MT and 37.6 MT under the Household Approach.
Acknowledging the potential impact of changing dietary patterns, the Behaviouristic
Approach offers a more nuanced perspective on India’s future edible oil needs. Scenario-I,
which assumes an average developed-world consumption level of 25.3 kg/person/year,
projects a small import gap of 2.1 MT in 2030. However, this gap is projected to close entirely
by 2047, with a surplus of 28.3 MT achievable by then (Table 5.14). Scenario II, based on the
highest observed consumption level of 40.3 kg/person/year (i.e., United States), presents
a more concerning picture in the near term. Under this scenario, a significant gap of 9.3
MT is projected by 2030. However, even this scenario suggests the potential for achieving
self-sufficiency in the long term, with a projected surplus of 3.4 MT by 2047 (Table 5.14).
These projections highlight the importance of not only increasing domestic production
but also considering potential shifts in consumption patterns when formulating long-term
strategies for achieving edible oil self-sufficiency.
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 115Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table 5.14: Projected Edible Oils Demand-Supply Gap at National Level by 2030 and 2047 (in
MT) adding Potential Increase through Strategic Interventions: Household Approach, Normative
Approach, and Behaviouristic Approach (Scenario- I & II )
Year
Projected
Supply
through
Strategic
Interventions
(MT)
Household
Approach
Normative
Approach
Behavioristic
Approach
(Scenario I)
Behavioristic
Approach (Sce-
nario II)
De-
mand
(MT)
GAP
(MT)
De-
mand
(MT)
GAP
(MT)
De-
mand
(MT)
GAP
(MT)
De-
mand
(MT)
GAP
(MT)
2030 36.2 30.1 6.1 15.9 20.3 38.3 -2.145.5 -9.3
2047 70.2 32.6 37.6 17.4 52.8 41.9 28.3 66.8 3.4
Source: Authors’ estimations
To bridge the potential import gap projected under the Behaviouristic Approach,
particularly in the near term, the significant production increase envisioned through strategic
interventions needs prioritized implementation. Realizing this ambitious target will necessitate
a focused approach that leverages the “Quadrant Strategy” on a state-wise cluster basis.
This data-driven strategy involves identifying and exploiting the potential opportunities
within each state cluster for specific edible oil crops. It emphasizes a scalable approach that
prioritizes not only clusters with LA-LY but also those with HA-LY and LA-HY potential.
By strategically targeting these clusters and implementing tailored interventions, India can
maximize its production potential and effectively address the near-term challenges posed
by potential consumption increases.
Over the past five years (2016-17 to 2021-22), India’s edible oil sector has witnessed
a CAGR of about 3%. This existing growth trend serves as a baseline. When considering
a BAU scenario with current production levels maintained, this recent growth trend might
be sufficient to meet the demand projected by the Normative Approach. It indicates that
India could potentially meet its edible oil needs based on recommended intake levels if
production continues on its current trajectory. However, achieving self-sufficiency in edible
oils necessitates a more ambitious strategy. Under the Household Approach, which factors
in population growth, to meet the projected demand by 2030 a significantly higher CAGR
of 9.5% would be required for the 2021-2030 period. Even for the longer-term goal of
self-sufficiency by 2047, a slightly elevated CAGR of 3.5% for the entire 2021-2047 period
would be necessary (Table 5.15).
The Behaviouristic Approach introduces another layer of complexity by considering
potential changes in consumption pattern driven by rising income levels, changes in lifestyles
and dietary patterns, and prices. Scenario-I, representing an average developed-world
consumption level, necessitates significantly steeper CAGRs to achieve self-sufficiency. In
this scenario, CAGRs of 12.5 % for the 2021-2030 period and 4.5 % for the 2021-2047 period
would be required to meet the projected demand by 2047, respectively. Scenario-II, based
on the highest observed consumption level, presents the most challenging scenario. Here,
self-sufficiency by 2030 and 2047 necessitates even steeper CAGRs of 14.6 % for the 2021-
2030 period and 6.4 % for the entire 2021-2047 period (Table 5.15). These findings highlight
the critical need for strategic interventions to accelerate domestic production and bridge
the gap between current growth trends and long-term self-sufficiency goals.
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 116Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table 5.15: Required CAGR for Edible Oil Self-Sufficiency: Considering BAU & Strategic Interventions
Scenarios across Normative, Household & Behaviouristic Approaches (Scenario- I & II)
Required CAGR
Household
Approach
Normative
Approach
Behaviouristic
Approach
Behaviouristic
Approach
(Scenario I) (Scenario II)

2021-
2030

2021-
2047
2021-
2030
2021-
2047
2021-
2030
2021-
2047
2021-
2030
2021-2047
Scenario I:
Existing Produc-
tion Level (with-
out Strategic
Interventions)
9.50%3.50%
Recent growth
trend (CAGR of
3%) would be
sufficient to
meet the pro-
jected demand
12.50%4.50%14.60% 6.40%
Scenario II:
Existing Produc-
tion Level com-
bined with the
Potential Increase
through Strategic
Interventions
Recent growth trend (CAGR of 3%) would be
sufficient to meet the projected demand
5.20%
Recent
growth trend
(CAGR of
3%) would be
sufficient to
meet the
projected
demand
Source: Authors’ estimations
The proposed strategic interventions, if implemented effectively, hold significant
promise for India’s edible oil sector. These measures have the potential to substantially
increase domestic production, moving the country to its goal of self-sufficiency. These gains,
combined with the existing production level is anticipated to achieve self-sufficiency with the
recent growth trend (CAGR of 3%) in all scenarios except for the most demanding scenario
(i.e., Behaviouristic Approach Scenario-II based on the highest observed consumption
level) in near term. To meet the projected demand by the more immediate target of
2030 under this scenario, a CAGR of 5.2% would be required for the 2021-2030 period,
representing a 2.2% increase from the recent growth situation. These targeted increases
can be achieved through a more focused and rigorous implementation of the proposed
strategic interventions. This more intensive approach has the potential to pave the way for
India to achieve Atmanirbharta (self-reliance) in its edible oil sector, ensuring a secure and
sustainable future for its edible oil needs.
STRATEGIES AND ROADMAP TO ACHIEVE SELF-SUFFICIENCY FOR ATMANIRBHARTA 117Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta 117Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
RECOMMENDATIONS AND WAY FORWARD
117Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
RECOMMENDATIONS AND WAY FORWARD
117Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
RECOMMENDATIONS AND WAY FORWARD
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
RECOMMENDATIONS AND WAY FORWARD
117Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
CHAPTER-VI
RECOMMENDATIONS AND
WAY FORWARD 119Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
RECOMMENDATIONS AND WAY FORWARD
RECOMMENDATIONS
AND WAY FORWARD
Achieving self-sufficiency in edible oils is a critical national priority for India. To navigate
this path successfully, a strategic approach that addresses key challenges and leverages
existing resources is essential. Recognizing this need, NITI, Aayog conducted a primary field
survey encompassing 1,261 farmers across seven major oilseed-growing states (Rajasthan,
Maharashtra, Madhya Pradesh, Uttar Pradesh, Haryana, Andhra Pradesh, and Karnataka)
(Annexure-IV). The valuable insights gained from this survey, coupled with a comprehensive
strategy and roadmap outlined in the previous chapters, the following recommendations
are laid down. These recommendations are designed to bolster India’s domestic edible oil
sector, fostering self-reliance and long-term stability.
6.1 Focus on Area Retention of Oilseeds and diversification
i. Crop Clusters and Technology Customization: Crop-wise clustering integrates
horizontal and vertical expansion efforts for targeted growth. States are categorized
into four clusters (HA-HY, HA-LY, LA-HY, and LA-LY) based on area and yield
performance for each oilseed crop, enabling nuanced growth strategies (see
Chapter-V for detailed lists). Develop customized cluster technology for yield
improvement and establish Agro-Ecological Sub Region (AESR)-based crop-specific
model farms to facilitate the horizontal spread of advanced technologies.
ii. Horizontal Expansion in Rice Fallow: Utilizing one-third of the total Rabi rice
fallow area across ten states for oilseed cultivation has the potential production
of additional 1.03 MT, representing a significant 7.1% reduction in India’s import
reliance. To ensure the economic viability and large-scale implementation of this
strategy across the potential states, exploration of the economic feasibility of large-
scale cultivation and identification of the optimal crop selection for different regions
is critical.
iii. Enhancing oilseed Development in Bundelkhand and the Indo-Gangetic Plain:
Revitalizing the Bundelkhand region in Madhya Pradesh and Uttar Pradesh, suitable
for oilseeds cultivation, is crucial. Prioritizing technology interventions, especially
promoting sesame cultivation tailored to the region’s conditions, can significantly
boost farm incomes. Additionally, diversifying the rice-wheat cropping system
in the Indo-Gangetic Plain (IGP) by introducing soybean, rapeseed-mustard, and
sunflower in select agro-ecological regions offers farmers increased profitability
addressing ground water depletion and soil health degradation issues. 120Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
iv. Prioritizing Wasteland Utilization for Oil Palm Horizontal Expansion: Prioritizing a
strategic approach to horizontal expansion of oil palm cultivation, leveraging highly
suitable underutilized wastelands is recommended. This strategy can be fostered
through inclusive partnerships involving FPOs, FPCs, SHGs, etc., engaged in long-
term contracts. Specifically, utilizing two-thirds of the total highly suitable areas
of wastelands located in ICAR-IIOPR identified districts (i.e., 6.18 Mha) presents a
significant opportunity for large-scale expansion. This approach has the potential to
increase total edible oil production by an estimated 24.7 MT, making a significant
stride towards closing the existing demand-supply gap and reducing dependence
on imports.
6.2 Seed Traceability and Quality Assurance
i. Cluster-Based Seed Village: Establishment of cluster-based seed hubs at block
levels “One Block-One Seed Village” to supply high quality seeds for oilseeds
aiming to enhance seed replacement rate (SRR) and varietal replacement rate
(VRR). Setting up a resilient system for these hubs will guarantee farmers access
to high-quality oilseeds through Farmers’ Producer Organizations (FPOs) in a timely
manner.
ii. Promotion of bio fortified oilseed varieties:
• Biofortification must be part of the national oil missions to address
micronutrient malnutrition by enhancing oleic acid in groundnut and soybean,
linoleic acid in linseed, and reducing anti-nutritional factors like erucic acid and
glucosinolates in mustard, and trypsin inhibitor and lipoxygenase in soybean.
• ICAR has released 14 biofortified oilseed varieties (mustard: 6, soybean: 5,
linseed: 1, groundnut: 2). Research institutions should produce more breeder
seeds and provide them to state governments, aiming for a 10-12% annual
adoption rate of bio fortified varieties by farmers.
iii. State-Level Seed Rolling Plans and Harmonizing Seed Quality Standards: State
governments are crucial in initiating breeder seed production through indent
requests. To ensure access to improved varieties, states should develop five-year
seed rolling plans. These plans prioritize replacing outdated oilseed varieties with
high-yielding, bio-fortified, and disease-resistant alternatives. Harmonizing Indian
Minimum Seed Certification Standards (IMSCS) with the Economic Co-operation
and Development (OECD) and the International Seed Testing Association (ISTA)
standards ensures Indian oilseeds meet global quality requirements, facilitating
international trade opportunities.
iv. Enhancing Yield through Improved Varieties: Genetic Potential: Existing
technologies offer substantial opportunities to boost oilseed yields. Newly developed
Indian varieties, detailed in Table 6.1, demonstrate genetic potential on par with
top-performing countries globally. Scaling up production of these high-potential
varieties and ensuring widespread distribution of their progeny are crucial steps
forward. New breeding techniques such as fast-track breeding, genomic selection,
genome editing, and gene introgression must be adopted to improve both yield
and quality of oil. 121Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table 6.1: Comparison of Genetic Potential of Newly Bred Indian Oilseed
Varieties with the Country with Highest Yield (t/ha) Globally
Crop
States with highest
yield
Country
with highest yield
Genetic potential of
newly bred Indian
varieties
Groundnut2.2 (Gujarat) 3.84 (China)3.5-4
Rapeseed-Mustard 1.58 (Rajasthan) 2.17 (Canada)3-3.5
Soybean1.26 (Maharashtra) 3.20 (Brazil)2.2-2.8
Sunflower1.27 (Odisha) 2.25 (Ukraine)2-2.5
Safflower0.82 (Karnataka) 0.71 (Kazakhsthan) 1-1.2
Linseed0.67 (Madhya Pradesh) 0.86 (Russia)1.2-1.6
Sesame0.82 (West Bengal) 0.28 (Sudan)1-1.5
Source: Yield computation (2017-2022) from MoAF&W Genetic potential of varieties: NAAS, 2022
6.3 Adoption of Improved and Advanced Production Technologies
Bridging the yield gap, which ranges from 12% in castor to 96% in sunflower, technology
improvements can raise national oilseed production by an estimated 46%, resulting in
approximately a 26% decrease in import reliance.
Crop improvement strategies should prioritize maximizing genetic potential by integrating
conventional breeding techniques with modern biotechnological tools. Specifically, a focused
approach on heterosis breeding to exploit hybrid vigour is essential for crops like sunflower,
castor, rapeseed-mustard, safflower, and sesame.
6.4 Value Addition through Processing and Refining
i. Harnessing Rice Bran Oil for Domestic Blending: The rice bran industry offers
substantial potential for domestic edible oil production, capable of yielding nearly
a million tons of oil suitable for blending with popular cooking oils. Collaboration
with other major rice-producing countries is essential to standardize regulations for
rice bran oil under the Codex Committee on Fats and Oils of the Joint WHO-FAO
Food Standards Programme, facilitating its large-scale utilization.
ii. Enhancing Efficiency in the Solvent Extraction Industry: The solvent extraction
industry, despite rapid expansion, faces challenges due to low capacity utilization
(around 30%) requires addressing geographical imbalances in plant distribution
and promoting modernization. Optimizing oil extraction through enhanced mill
management practices is essential, aiming to achieve at least 60% annual capacity
utilization for increased efficiency in domestic edible oil production.
6.5 Effective Marketing and Robust Market Linkages
i. Optimizing Storage Strategies and Price Incentives: Balancing off-season storage
profitability with consumer affordability is key. Implementing fair pricing structures
ensures adequate margins for storage costs, interest, and stakeholder returns,
promoting market stability while incentivizing off-season sales. 122Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
ii. Enhancing Marketing Infrastructure: To improve the realizable income of oilseed
farmers, ensuring procurement at the Minimum Support Price (MSP) through
NAFED (National Agricultural Cooperative Marketing Federation of India) and state-
owned oilseeds federations is essential. Furthermore, facilitating direct marketing
of output with NAFED/state-owned oilseed federations can act as a catalyst for
promoting oilseed cultivation in non-traditional areas of the country.
iii. Setting Up Testing Laboratories in the Mandis: Indian oilseed markets lack a
scientific approach, with traders relying solely on visual inspection. This subjectivity
leads to inconsistencies in pricing and disadvantages producers of higher-quality
oilseeds. Establishing standardized quality parameters and implementing mandatory
testing procedures at mandis (agricultural markets) is vital to address this gap.
Testing laboratories may setup in PPP mode utilizing expertise of agricultural
universities and ICAR institution.
iv. Enhancing Oil Palm Sector Efficiency: Promoting large-scale “captive plantations”
and dedicated oil palm “seed gardens” is crucial to boost domestic edible oil
production. Declaring oil palm as a plantation crop would streamline regulations and
facilitate land allocation. Additionally, enforcing zero-waste policies in processing
units ensures byproducts are utilized, potentially converting palm oil mill effluent
(POME) into methane for electricity generation and supporting value-added
enterprises.
6.6 Encouraging Public-Private Partnerships
i. Strategic Partnerships for Sustainable Edible Oil production: Leveraging public-
private partnerships is crucial for accelerating edible oil production, utilizing private
sector expertise in technology, marketing, seed production, and area promotion
across all oilseed crops, including oil palm, with buy-back arrangements. Achieving
sustainable oil palm production requires collaboration among government agencies,
grower cooperatives, local NGOs, and the private sector, utilizing initiatives like the
Roundtable on Sustainable Palm Oil (RSPO) to prioritize biodiversity conservation.
6.7 A Dynamic Trade Policy for Balanced Growth
A flexible tariff structure, responsive to global market prices, domestic supply and demand
trends, and the Minimum Support Price (MSP) for oilseeds, offers a strategic approach.
Implementing a higher import duty regime can safeguard domestic production, while
a substantial duty gap between crude and refined oil will benefit processing industries.
Aligning support prices with the import duty structure will support farmers, processors,
and consumers alike.
6.8 Broadening the Scope of the National Mission on Edible Oils
To achieve self-sufficiency in edible oils and reduce import dependence, expanding the
National Mission on Edible Oils is recommended. This broadened initiative should encompass
key oilseeds like mustard, soybean, groundnut, sunflower and sesame. Additionally, exploring
the potential of secondary and tree-based oilseed varieties can further diversify domestic 123Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
production and enhance overall edible oil security. Export avenues for sesame, groundnut
and castor oil should be created by addressing quality concerns.
6.9 Strategies for Consumer Preference and Industry
i. Public Education on Dietary Guidelines: To foster consumer acceptance of
domestically produced edible oils, strategies include culinary workshops targeting
chefs, homemakers, influencers leveraging cooking shows to highlight versatility,
and public education emphasizing the Recommended Dietary Allowance (RDA)
of fats and oils, as established by the World Health Organization (WHO) and
the National Institute of Nutrition (NIN), are crucial. These initiatives support SDG
3 (Good Health and Well-Being), along with importance of understanding the
financial implications of health expenditures which aims to reduce catastrophic
health spending and ensure affordable access to health needs, including nutrition.
ii. Incentivizing Domestic Oilseed Consumption in the Food Industry: Encouraging
greater use of domestically produced edible oils in the food industry is crucial for
strengthening the domestic edible oil sector. Introducing incentive schemes that
reward food manufacturers for integrating locally sourced and processed oils into
their products has the potential to generate substantial economic benefits.
6.10 Data-Driven Transformation and Research Investment
Addressing disparities in oilseed yields requires a data-driven approach and robust systems
to bridge regional gaps. Investing in research and development is crucial for transforming
the edible oil sector, offering higher returns than input subsidies. 125Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
ANNEXURES
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
ANNEXURES
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
ANNEXURES
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
ANNEXURES
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
ANNEXURES 127Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Trends of MSP in oilseeds
Trends of MSP
in oilseeds
ANNEXURE-1
Table A1.1 Trends of MSP in oilseeds (` per quintal)
Crops
2014-
15
2015-
16
2016-
17
2017-
18
2018-
19
2019-
20
2020-21
2021-
22
2022-
23
2023-
24
2024-
25
Absolute
Change
(`)
Relative
Change
(%)
Groundnut40004030422044504890509052755550585063776783278369.6
Sunflower
Seed
37503800395041005388565058856015640067607280353094.1
Soyabean25602600277530503399371038803950430046004892233291.1
Sesamum460047005000530062496485685573077830863592674667101.5
Nigerseed360036503825405058775940669569307287773487175117142.1
Rapeseed/
Mustard
31003350370040004200442546505050545056505650255082.3
Safflower30503300370041004945521553275441565058005800275090.2
Source: Ministry of Agriculture and Farmer’s Welfare 128Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table A2.1: Projected Population - All India (2021-2047)
YearTotal
Population (‘000)
Rural population
(‘000)
Urban population
(‘000)
Urban (%)
2021 1407564 90938549817935.39
20221417173 908805 50836835.87
20231428628 909122 51950636.36
20241441720 910201 53151936.86
2025 1454607 910831 54377637.38
20261467231 910989 55624237.91
20271479579 910651 56892838.45
20281491671 909860581811 39.04
20291503471 908592 59487839.56
20301514994 90684560814940.14
2031 1526209 904615 62159440.72
20321537108 901914 63519541.32
20331547690 898728 64896241.93
20341557920 895072 66284842.54
20351567802 890951 67685243.17
20361577303 886381 69092243.80
20371586439 881409 70502944.44
20381595246 87607771916945.08
20391603665 870405 73326045.72
20401611676 86435874731846.36
20411619318 858012 76130647.01
20421626585 851355 77523147.66
20431633431 84436978906148.30
20441639838 837055 80278348.95
20451645863 82946681639849.60
20461651514 821612 82990250.25
20471656777 813494 84328350.89
Source: https://databank.worldbank.org/source/population-estimates-and-projections#
Projected Population -
All India (2021-2047)
ANNEXURE-2 129Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Key Hotspot Areas
Requiring Urgent
Technological Integration
To guide targeted technology dissemination efforts, key hotspot areas requiring immediate
interventions have been identified and presented in Table A3.1.
Table A3.1: Key Areas Requiring Urgent Techwnological Integration
CropState District / Region
Groundnut
Andhra PradeshAnantapuram, Chittoor, Kadapa, Kurnool
Gujarat: Kharif
Amreli, Bhavnagar, Jamnagar, Junagadh,
Rajkot, Sabarkantha, Kutch, Porbandar
Gujarat: RabiBhavnagar, Junagadh, Vadodara, Kutch
MaharashtraDhule, Nashik, Kolhapur, Nasik, Sangli, Satara
KarnatakaChitradurga, Tumkur, Bellary, Belgaum
RajasthanBikaner, Churu, Jaipur, Jodhpur, Sikar
Madhya Pradesh:Chhindwara, Shivpuri, Tikamgarh
Tamil Nadu:
Erode, Namakkal, Pudukottai, Vellore,
Villupuram, Salem, Thiruvannamalai
Telangana
Mahabubnagar, Karimnagar, Nalgonda,
Rangareddy, Warangal
Soybean
M.P.Malwa and Vindhya Plateau
Maharashtra
Ahmednagar, Akola, Amravati, Beed,
Buldhana, Chandpur, Hingoli, Latur, Nagpur,
Nanded, Parbhani, Wardha, Washim, Yavatmal
Rajasthan: Baran, Bundi, Kota
Chhattisgarh
Chhattisgarh: Bemetra, Kabirdham,
Rajnandgaon
TelanganaAdilabad
Sesame
GujaratRajkot, Amreli, Kutch
Rajasthan
Pali, Jodhpur, Jalore, Sawai Madhopur, Sirohi,
Bhilwara, Tonk, Nagaur, Ajmer
Tamil NaduCauvery Delta Zone
Uttar PradeshCentral Plain region
Madhya PradeshSheopur, Singrauli
West BengalHooghly, Burdwan
ANNEXURE-3 130Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
CropState District / Region
Rapeseed-
Mustard
Rajasthan
Bundi, Pali, Jaisalmer, Jalore, Jodhpur, Nagaur,
Sawai Madhopur, Tonk
Assam
Barpeta, Darrang, Dhemaji, Karbi Anglong,
Sonitpur
Madhya PradeshBhind, Gwalior, Morena, Shivpuri
Uttar Pradesh
Budaun, Barabanki, Kanpur Dehat, Kheri,
Mathura, Sitapur
HaryanaBhiwani, Mahendragarh
GujaratBanaskantha, Mehsana, Patan
Sunflower
Karnataka
Northern Karnataka
Andhra PradeshKadapa, Kurnool
MaharashtraMarathwada region
Safflower
MaharashtraMarathwada region
Karnataka
Bidar, Yadgir, Raichur, Koppal, Bellary, and
Gulbarga
Linseed
Madhya Pradesh
Balaghat, Chhatarpur, Damoh, Rewa, Satna,
Seoni, Sidhi
Uttar Pradesh
Chandrapur (MH); Hamirpur,Mahoba, Mirzapur,
Sonbhadra
Nigerseed
Madhya PradeshAnnupur, Betul, Chhindwara, Dindori
KarnatakaBidar, Mysore, Tumkur
ChhattisgarhBalrampur, Bastar, Jashpur, Surguja
MaharashtraNasik
OdishaKoraput, Kendujhar, Kandhamal, Rayagada
Source: IIOR, Hyderabad 131Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Analysing oilseed production in India, both at the state and all-India levels, is critical for
understanding the intricacies of the agricultural sector. This comprehensive examination
provides insights into regional strengths, challenges, and opportunities, aiding in formulating
targeted policies and strategies. The state-wise analysis delves into specific regional dynamics.
At the same time, the all-India perspective offers a holistic view of the oilseed sector, guiding
efforts toward achieving self-sufficiency, ensuring food security, and enhancing economic
growth. This primary examination serves as a foundation for informed decision-making and
sustainable development in the vital domain of oilseed cultivation. This section includes
a detailed analysis of 7 oilseed-growing states from a primary survey conducted by NITI
Aayog.
1. Sampling Framework of Selected Farmers
The survey of oilseed production in 7 states was conducted to assess the current
status of oilseed production in the country. Sampling framework showing selected
districts of the sample states is shown in Figure A4.1. The sample size for the survey
was 1261 farmers from different states, having different socio-economic profiles,
cropping patterns, and land holdings relating to oilseed production (Table A4.1 and
Table A4.2).

Rajasthan AlwarBharatpur
Madhya Pradesh Narmadapuram Sheopur Raisen
Haryana HisarSirsa
Andhra Pradesh Kurnool Anantapuram
Karnataka Belagavi Belgaum
Maharashtra Washim Buldhana
Uttar PradeshJhansi
Figure A4.1: Sampling framework showing selected districts of the sample states
Insights into Oilseed
Cultivation: A Survey of
Indian Farmers
ANNEXURE- 4 132Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
The survey also found a significant variation in oilseed production across different
states. This variation is due to several factors, including climate, soil type, and irrigation
practices. This decline is due to several factors, including the increasing use of fertilizers
and pesticides and the adoption of new agricultural technologies. The survey findings
suggest a need to improve oilseed production in the country. This can be done by several
measures, including developing new oilseed varieties, promoting sustainable agricultural
practices, and providing better access to credit and inputs for oilseed farmers.
Table A4.1: Sampling framework for the selected farmers along with crops
Oilseed cropSelected stateNo. of the sample farmers
Soybean
Madhya Pradesh22
Maharashtra142
Rajasthan12
Karnataka11
SunflowerKarnataka30
Andhra Pradesh22
Maharashtra75
Niger seedMadhya Pradesh22
Maharashtra41
Rapeseed &
Mustard
Rajasthan100
Madhya Pradesh21
Haryana194
SafflowerMaharashtra52
Karnataka26
CastorRajasthan5
Andhra Pradesh15
LinseedMadhya Pradesh25
Uttar Pradesh40
GroundnutAndhra Pradesh75
Rajasthan8
Karnataka13
SesameRajasthan5
Madhya Pradesh21
Uttar Pradesh51 133Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table A4.2: Sampling framework with land holdings
State
No. of
farmers
Marginal
farmers
(< 1 ha)
Small farmers
(1 to 2 ha)
Semi Medium
farmers
(2 to 4 ha)
Large farmers
(> 4 ha)
Rajasthan214 9.50% 12.60% 38.60% 9%
Maharashtra 310 44% 28% 27.60% 0.40%
Madhya Pradesh 111 25.80% 19.50% 38.70% 15.80%
Uttar Pradesh 91 28% 34.60% 31.10% 6%
Haryana194 65.20% 14.47% 17.55% 2.83%
Andhra Pradesh 112 6% 24.60% 60.60% 7.30%
Karnataka80 22.50 34.30% 20.60% 4%
2. Farmers’ socio-economic profile:
The socio-economic factors furnish a base for further planning and development of
the agriculture sector. The standard of living of people depends upon their socio-
economic status. The socioeconomic status of farmers can be assessed or quantified
through various parameters like age-wise distribution of farmers, their educational
status, their size of land holdings, their farming experience etc. Table A4.3 presents
a brief overview of the demographic profile of the respondents. It can be clearly
seen from the statistics that there are wide variations in the socio-economic profile
of the households across the sample states. At the aggregate, 1028 farmers were
chosen from the selected seven states in India.
Table A4.3: Demographic profile of the respondents (% of households) – participants
States
Rajasthan
Maharashtra
Madhya
Pradesh
Uttar Pradesh
Haryana
Andhra
Pradesh
Karnataka
AggregateCharacteristics
No of sample (Households) 130 310 111 91 194 112 80 1028
Household size (numbers) 5.57 5.32 6.23 5.53 4.91 4.72 6.01 5.47
Average number of earners
in the HH
2.68 2.3 3.02 2.52 2.28 1.98 5.69 2.92
Farming experience of the
respondents (years)
25.622.45 29.58 26.01 25.8 21.3 26.8725.37
Age group
<16 0 0 0 0 0 0 0 0.00
16-60 88.391.8489.98 86.5690.56 89.56 86.5689.05
>60 11.78.16 10.02 13.219.44 10.44 13.4410.92
Education
status (Above
only)
Illiterate4.1 10.56 5.39 2.00 20.60 22.56 10.6310.83
Up to
primary
17.4542.44 38.5624.00 14.56 18.2326.0725.90
up to
secondary
55.8529.00 45.23 56.3236.5646.54 44.9244.92
up to
graduate
1.112.50 3.29 15.1226.56 12.32 11.8511.82
above
graduate
21.55.50 7.53 2.56 1.72 0.35 6.53 6.53 134Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
States
Rajasthan
Maharashtra
Madhya
Pradesh
Uttar Pradesh
Haryana
Andhra
Pradesh
Karnataka
AggregateCharacteristics
Main
occupation
Farming 95.6 100 98.2599.56 96.85 98.23 97.3697.98
Self-
business
4.12 0 1.2 0 2.56 1.2 2.64 1.67
Salaried/
pensioners
0.2 0 0.23 0.43 0.23 0 0 0.16
wage
earners
0 0 0.32 0.01 0.36 0 0 0.10
Others 0.08 0 0 0 0 0 0 0.01
The average household size was around five members, with an average number
of three earning members. The household size was smallest in Andhra Pradesh,
4.91, while it was highest, 6.23, in Madhya Pradesh. The average farming experience
of the sampled farmer respondents was around 25 years, with the highest at 29
years in Madhya Pradesh and the lowest at 22 years in Maharashtra. Looking at the
education status among the selected households, the proportion of illiterate was
around 10 %. Those who were educated up to primary level were found to be 26
%. The proportion of farmers educated up to secondary level was the highest at 45
% while graduates and above graduates were respectively, 12 % and 6 %. Around
89 % of the selected farmers were the working age of sixteen to sixty years, while
only 10 % had senior citizen status above 60 years.
Glancing at the main occupation of the farmer respondents, it is evident that
farming alone was the main occupation among the respondents for around 98 %
of all states on aggregate. Salaried and pensioners contributed around 0.16 % of all
the respondents, and respondents with self-business accounted for just 2 %.
3. Holding Size:
The details of the respondents’ average size of land holdings are given in Table
A4.4. It is discernible from the table that the average owned area of the sampled
respondents of selected states was 8.6 acres. Maharashtra, Haryana and Karnataka
had comparatively higher owned areas than other states. On aggregate, the net
operated area was slightly higher (8.8 acres) than the owned area, indicating net
lease-in exceeding the net lease-out area by the selected households.
The operated area was less than the owned area in Karnataka, Maharashtra
and Uttar Pradesh, indicating either some owned areas not under the operation
or the leased-out area being more than the leased-in area in these three states.
The operated area was higher in Haryana, Madhya Pradesh, Rajasthan, and Andhra
Pradesh. 135Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Table A4.4: Average size of land holdings of the respondents (in acres)
States Owned area
Net operated
area
Gross
cropped area
Cropping
intensity (%)
Area irrigated
(%)
Rajasthan 6.1 6.3 12.8 135.9 65.2
Maharashtra 10.6 7.6 10.4 136.8 77.9
Madhya Pradesh 7.1 7.3 9.7 131.3 81.7
Uttar Pradesh 6.9 6.4 8.1 130.2 93.1
Haryana11.9 12.3 21.0 154.2 94.2
Andhra Pradesh 6.4 12.4 13.5 119.2 81.2
Karnataka11.2 9.3 16.2 135.3 71.6
Aggregate 8.6 8.8 13.1 134.7 80.7
4. Seed Purchase Details:
Seed purchase is an essential part of agriculture. Farmers need to purchase high-
quality seeds to produce a good crop. The seed market is a complex one, with many
different factors to consider when making a purchase. One of the most important
factors to consider is the type of seed. Many different types of seeds are available,
each with its advantages and disadvantages. Some farmers prefer to purchase
certified seed, which is a seed that has been tested and certified to meet specific
standards. Other farmers prefer to purchase hybrid seed, a cross between two
different varieties of plants. Hybrid seed often produces higher yields than certified
seed but is also more expensive. The quality of the seed is important because it
can affect the germination rate, the vigour of the seedlings, and the overall yield
of the crop. Farmers should purchase seed from a reputable supplier and inspect
the seed for signs of damage or disease before planting (Figure A4.2). Seed prices
can vary widely, depending on the type of seed, the quality of the seed, and the
supplier. Farmers should compare prices from different suppliers to get the best
deal. Some types of seeds are more readily available than others. Farmers should
make sure that they can purchase the type of seed they need in the quantity they
need before planting season begins.
Figure A4.2: Source of Seeds (%) 136Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Madhya Pradesh has the highest purchases under full subsidy, which is 30%, followed by
Uttar Pradesh. Andhra Pradesh has the highest purchases under partial subsidy, which
is 68%, followed by Karnataka (Table A4.5).
Table A4.5: Seed purchase details
State
Public
Private OwnedOn Full
Subsidy
On Partial
Subsidy
Rajasthan 6.4 23.451.1 19.1
Maharashtra0.96.437.655.1
Madhya Pradesh30.1 28.8 35.65.5
Uttar Pradesh23.7 12.4 26.837.1
Haryana2.213.3 75.68.9
Andhra Pradesh0.0 69.06.924.1
Karnataka9.0 48.3 38.93.8
5. Knowledge of MSP to the Farmers
The survey on oilseed cultivation in various states provided valuable insights into
farmers’ awareness and engagement with Minimum Support Price (MSP) policies.
Among the 1028 surveyed farmers, a substantial 81.2% were found to be aware of
the MSP provided by the government. This data underscores a notable gap in either
the dissemination of information or the accessibility of such information among the
farming community in the region.
6. Constraints faced by farmers in growing oilseeds
The opinion and suggestions of farmers regarding farmers regarding the cultivation
of oilseeds in each state is presented in the Table 6 and are summarized below.
(i) 52.4% of the farmers agree that there is a lack of irrigation facilities in states
like Rajasthan, Madhya Pradesh, Karnataka etc.
(ii) 50.1% of farmers from states like Maharashtra, Haryana etc. faced the problem
of timely availability of seed.
(iii) 58% of the farmers, on average, disagree with the fact that there is an irregular
& poor-quality supply of inputs.
(iv) 40.8% of the farmers agree that there are high mandi charges.
(v) Lack of awareness of improved oilseed technologies is a problem 61.1% of the
farmers face.
(vi) 75.7% of the farmers agree that there is a lack of processing facilities in the
states. 137Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
(vii). 82.2% of the farmers disagree with the fact that there is poor road infrastructure
in the states.
Table A4.6: Constraints faced by farmers in growing oilseeds (%)
S.
No.
Problems
faced by
the farmers
Rajasthan
Maharashtra
Madhya
Pradesh
Uttar Pradesh
Haryana
Andhra
Pradesh
Karnataka
Aggregate
Production Constraints
1.
Non-
availability
of suitable
varieties
Agree 11.028.0 15.0 16.030.0 50.0 12.0 23.1
Disagree 4.0 15.0 35.0 32.0 6.7 31.0 32.0 22.2
Don’t
Know
85.0 57.0 50.0 52.0 63.3 19.0 56.0 54.6
2.
Poor crop
germination
Agree 8.2 15.0 12.0 25.3 21.141.0 15.0 19.6
Disagree 51.248.3 23.5 34.3 17.838.0 40.0 36.1
Don’t
Know
40.6 36.7 64.5 40.4 61.1 21.045.0 44.1
3.
Lack of
irrigation
facilities
Agree 85.2 75.2 65.3 32.6 19.2 29.3 60.2 52.4
Disagree 12.3 14.3 12.6 16.3 45.2 13.2 22.8 19.5
Don’t
Know
2.5 10.5 22.1 51.135.6 57.5 17.0 28.0
4.
Poor quality
of soils
Agree 15.349.5 29.5 35.4 52.6 27.168.6 39.7
Disagree 3.1 5.3 14.3 16.3 11.3 13.8 16.2 11.4
Don’t
Know
81.6 45.2 56.2 48.3 36.1 59.1 15.248.8
5.
High input
costs (die-
sel, fertilizer,
agrochemi-
cals etc.)
Agree 63.2 56.2 40.6 67.2 68.8 71.583.9 64.4
Disagree 20.3 16.3 14.3 16.8 21.5 24.1 10.1 17.6
Don’t
Know
16.5 27.5 45.1 16.0 9.7 4.4 6.0 17.8
6.
Problem
of timely
availability
of seed
Agree 56.1 26.8 46.3 46.2 72.3 46.9 56.3 50.1
Disagree 5.1 16.5 16.3 16.9 21.3 12.6 11.3 14.2
Don’t
Know
38.8 56.7 37.4 36.9 6.4 40.5 32.4 35.5
7.
Irregular &
poor-quality
supply of
inputs
Agree 5.1 6.3 16.2 21.3 13.3 29.3 11.314.6
Disagree 56.2 60.3 67.2 52.9 70.5 43.6 55.9 58.0
Don’t
Know
38.7 33.4 16.6 25.8 16.2 27.1 32.8 27.2
Marketing Constraints
8.
High mandi
charges
Agree 53.2 16.2 26.3 31.746.9 56.8 55.0 40.8
Disagree 16.3 19.4 21.5 16.7 11.325.3 31.520.2
Don’t
Know
30.5 64.4 52.2 51.6 41.8 17.9 13.5 38.8 138Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
S.
No.
Problems
faced by
the farmers
Rajasthan
Maharashtra
Madhya
Pradesh
Uttar Pradesh
Haryana
Andhra
Pradesh
Karnataka
Aggregate
9.
Exploitation
by market
intermedi-
aries
Agree 9.2 16.3 70.3 55.3 56.4 59.160.4 46.7
Disagree 16.3 35.3 16.3 42.6 17.5 13.2 9.5 21.5
Don’t
Know
74.5 48.4 13.4 2.3 26.1 27.7 30.1 31.7
10.
Low and
fluctuating
prices at
the time of
harvesting
Agree 70.6 75.3 80.2 77.6 63.5 71.2 85.2 74.8
Disagree 5.6 6.0 8.1 12.3 11.9 19.4 12.3 10.8
Don’t
Know
23.8 18.7 11.7 10.124.6 9.4 2.5 14.4
Information access
11.
Lack of
awareness
of improved
oilseed
technologies
Agree 70.2 68.3 52.1 56.3 62.3 67.1 51.7 61.1
Disagree 10.6 15.2 22.3 21.7 11.3 19.7 12.3 16.1
Don’t
Know
19.2 16.5 25.6 22.0 26.4 13.236.0 22.7
12.
Poor
extension
services
Agree 23.6 39.1 32.6 15.2 22.1 16.7 25.2 24.9
Disagree 51.3 53.2 16.5 46.3 41.3 61.2 59.7 47.0
Don’t
Know
25.1 7.7 50.9 38.5 36.6 22.1 15.1 28
13.
Lack of
information
about prices
and markets
Agree 42.143.0 47.3 63.1 18.9 25.0 19.3 36.9
Disagree 16.3 19.0 42.3 33.1 13.5 35.3 45.0 29.2
Don’t
Know
41.6 38.0 10.4 3.8 67.6 39.7 35.8 33.8
Infrastructural and Institutional constraints
14.
Lack of
institutional
credits
Agree 23.1 31.3 52.3 54.6 41.6 61.4 44.3 44.0
Disagree 46.2 52.3 41.3 16.5 31.6 36.2 41.2 37.9
Don’t
Know
30.7 16.4 6.4 28.9 26.8 2.4 14.5 18.0
15.
Irregular
supply of
power
Agree 46.2 62.1 43.2 51.2 41.3 51.3 32.146.7
Disagree 16.3 24.3 16.4 41.3 46.8 37.3 23.6 29.4
Don’t
Know
37.5 13.640.4 7.5 11.9 11.444.3 23.8
16.
Poor
marketing
system and
access to
markets
Agree 2.0 42.1 0.0 0.0 11.168.2 66.4 27.1
Disagree 1.0 57.3 0.0 0.0 1.1 31.8 34.2 17.9
Don’t
Know
96.9 0.6 100.0100.087.8 0.0 0.0 55.0 139Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
S.
No.
Problems
faced by
the farmers
Rajasthan
Maharashtra
Madhya
Pradesh
Uttar Pradesh
Haryana
Andhra
Pradesh
Karnataka
Aggregate
17.
Lack of
processing
facilities in
the area
Agree 71.2 73.5 85.2 69.1 73.6 76.1 81.3 75.7
Disagree 13.2 19.5 12.3 12.3 14.2 9.3 11.2 13.1
Don’t
Know
15.6 7.0 2.5 18.6 12.2 14.6 7.5 11.1
18.
Lack of
appropriate
transport
means
Agree 15.3 23.2 31.3 41.2 14.3 45.3 22.7 27.6
Disagree 42.6 51.334.9 45.3 54.2 54.3 42.9 46.5
Don’t
Know
42.1 25.5 33.8 13.5 31.5 0.4 34.4 25.8
19.
Inadequate
storage
facilities
Agree 60.2 71.6 81.3 84.3 76.2 81.3 79.3 76.3
Disagree 12.3 14.9 16.2 14.0 21.0 17.3 11.0 15.2
Don’t
Know
27.5 13.5 2.5 1.7 2.8 1.4 9.7 8.4
20.
Poor road
infrastruc-
ture
Agree 4.1 12.6 12.9 15.3 13.2 11.9 6.1 10.8
Disagree 91.2 83.6 73.6 81.3 85.3 79.9 81.182.2
Don’t
Know
4.7 3.8 13.5 3.4 1.5 8.2 12.8 6.8
21.
High trans-
portation
costs
Agree 36.4 46.1 52.3 19.3 64.1 51.4 36.4 43.7
Disagree 16.2 21.3 22.2 34.6 19.4 25.1 26.7 23.6
Don’t
Know
47.4 32.6 25.5 46.1 16.5 23.5 36.9 32.6
Natural constraints
22.
Extreme
variation in
temperature
Agree 23.5 35.6 41.3 47.6 26.0 28.9 38.3 34.4
Disagree 26.7 56.1 23.146.6 71.3 16.4 13.6 36.2
Don’t
Know
49.8 8.3 35.6 5.8 2.7 54.7 48.1 29.2
23.
Excessive
rains
Agree 16.3 26.1 6.7 31.2 12.3 19.1 16.4 18.3
Disagree 19.4 16.2 24.3 36.1 42.6 41.2 16.4 28.0
Don’t
Know
64.3 57.7 69.0 32.7 45.1 39.7 67.2 53.6
State wise gist of survey is given below.
a) Rajasthan:
1. Rajasthan farmers stress the importance of improved irrigation due to low and
unpredictable rainfall. They suggest promotion of better irrigation systems, such as
drip irrigation, to optimize water usage for oilseed cultivation.
2. Rajasthan farmers are troubled by crop damage caused by wildlife, especially blue
bulls. They propose financial aid or community-led wildlife management projects to
reduce losses and encourage oilseed farming. 140Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
3. To cope with short rainfall periods, Rajasthan farmers suggest early sowing and
drought-resistant oilseed varieties to increase yield potential.
4. Farmers were worried about unpredictable weather and yield variability. They propose
expanding crop insurance schemes to manage risks in oilseed farming, thereby
promoting investment in the sector.
5. For mustard cultivation, farmers suggest stabilizing prices through awareness of
future trading and strengthening crop insurance by calculating indemnity losses at
the village level.
6. Farmers suggest that strengthening extension services is crucial for disseminating new
technologies, best practices, and crop management techniques to fellow farmers. By
improving the reach and effectiveness of extension services, farmers can stay updated
on the latest advancements in agriculture, enabling them to enhance productivity
and profitability.
7. Most of the farmers, i.e. 85.2%, agreed that there is lakhs of irrigation facilities in
Rajasthan.
b) Maharashtra:
1. Farmers in Maharashtra report that weather-related factors, particularly drought,
significantly affect soybean yield in the state. Over the past five years, approximately
91% of farmers have been impacted by drought. The frequent occurrence of drought
reduces oilseed yield, resulting in lower output and diminished profits for farmers.
2. Farmers suggest establishing and strengthening early warning systems for pest and
disease outbreaks. Prompt actions based on early warnings can help minimize the
need for costly pesticide applications and mitigate environmental impacts associated
with pest and disease control measures.
3. There is the problem of low and fluctuating prices at the time of harvesting in
Maharashtra, to which 75.3% of the farmers agreed.
c) Madhya Pradesh:
1. Farmers emphasize the need for machinery designed explicitly for soybean cultivation,
such as seed cum fertilizer drills, ridge and furrow implements, harvesters, and
combiners. Existing machinery tailored for wheat isn’t optimal for soybean farming.
2. Farmers demand regular electricity supply, proper storage facilities at the village level,
strengthening of extension and market intelligence services, and the establishment
of more regulated market/purchase centers.
3. Farmers suggest promoting the development and adoption of oilseed varieties
resistant to waterlogging and diseases associated with excessive rainfall.
4. In Madhya Pradesh, 70.3% of farmers agreed that there is exploitation in the market
by intermediaries.
d) Uttar Pradesh:
1. More than half of linseed farmers delay their sowing due to late harvesting of previous
Kharif crops, particularly paddy. 141Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
2. Farmers opinion that about 50% of them experience lower yields in linseed compared
to other crops. Moreover, the growth pattern of these crops in Uttar Pradesh has
been riskier because of the rainfall pattern and limited water resources.
3. 84.3% of farmers in Uttar Pradesh agreed that there are no proper storage facilities
in the state at local level.
e) Haryana:
1. The rice-wheat cropping system, covering 58% of the cultivated area in Haryana,
is now recognized as a significant cause of soil health deterioration. To promote
diversification in these areas, research on crops such as maize, soybean, castor,
sunflower, groundnut, rapeseed-mustard, autumn sugarcane, gram, arhar, and moong
bean must be strengthened. Haryana has a high potential for oilseed production,
which needs to be harnessed.
2. Farmers suggest providing targeted subsidies on diesel, fertilizers, and agrochemicals
to ease their financial burden. Additionally, they recommend facilitating easy and
affordable access to credit for farmers to purchase inputs.
3. In Haryana, 73.6% of farmers face a lack of processing facilities.
f) Andhra Pradesh:
1. Most surveyed farmers suggested that the government should supply suitable, good-
quality seeds, fertilizers, and pesticides at subsidized prices.
2. Farmers also emphasized the importance of a regular power supply, at least 10 hours
daily, for better oilseed production.
3. Farmers suggested expanding irrigation facilities through subsidized bore wells.
4. Farmers suggested the establishment of processing facilities in nearby areas to
generate employment in rural areas and reduce the influence of intermediaries and
village traders.
5. Some farmers emphasized the need for soil testing laboratories at the mandal level
to promote soil test-based fertilizer recommendations.
6. Farmers suggest the enhancement of Minimum Support Prices (MSP) annually
according to input market prices.
7. Farmers suggest extending government agencies to purchase oilseeds at the village
level to control traders and intermediaries.
8. Farmers propose to introduce weather-based insurance policies and expanding
regular markets while establishing processing units nearby.
9. Farmers express the need for farm-level testing laboratories for soil, seeds, land types,
and insecticides/pesticides.
10. Farmers emphasize the need to ensure a remunerative price by procuring groundnut
from them if prices fall below the minimum support price. They also advocate for
promoting soil test-based fertilizer recommendations and the application of gypsum
in irrigated groundnut crops to meet calcium and sulphur requirements. 142Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
11. For sunflower cultivation, farmers emphasize the need to supply quality seeds of
improved varieties and hybrids to enhance productivity. They suggest that the
government provide Boron Nutrition at subsidized prices to farmers during the floret
opening stage to increase seed set and yield.
12. Farmers suggest that the central government impose duties on imported palm oil
to support local cultivators.
13. 68.2% of farmers in Andhra Pradesh agreed to the fact that there is a problem of
poor marketing systems and access to markets.
g) Karnataka:
1. Farmers suggest that developing entrepreneurial activities is essential to safeguard
oilseed growers.
2. Many small and marginal farmers lack access to oilseed markets and often sell
their produce at lower rates. These farmers are typically illiterate and economically
disadvantaged, making them hesitant to retain oilseeds for long periods. By developing
entrepreneurial skills among these growers, they can secure remunerative prices for
their crops, thereby increasing oilseed production and productivity in the years to
come.
3. High input costs (diesel, fertilizer, agrochemicals, etc.) have bothered about 83.9%
of farmers in Karnataka. 143Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
State-wise Quadrant
Strategy for Primary and
Secondary Edible Oil Crops
Soybean
Soybean
Yield (National Average: 1.03 t/ha)
HighLow
Area
(National
Average: 0. 55
Mha)
HighMaharashtraMadhya Pradesh, Rajasthan
Low
Karnataka, Telangana, Gujarat,
Nagaland, Uttarakhand, Arunachal
Pradesh, Meghalaya, Andhra
Pradesh, Mizoram, Himachal
Pradesh
West Bengal, Tripura, Sikkim,
Jharkhand, Manipur, Bihar,
Chhattisgarh, Uttar Pradesh
Safflower
Safflower
Yield (National Average: 0.70 t/ha)
HighLow
Area
(National Average:
0. 005 Mha)
HighKarnatakaMaharashtra
Low
Telangana, Madhya Pradesh, Arunachal
Pradesh, West Bengal, Bihar
Jharkhand, Andhra Pradesh,
Odisha, Chhattisgarh
Mustard
Mustard
Yield (National Average: 1.45 t/ha)
HighLow
Area
(National Average:
0.24 Mha)
High
Rajasthan, Madhya Pradesh.,
Haryana
Uttar Pradesh., West Bengal,
Jharkhand, Assam
Low Gujarat, Punjab, Telangana
Bihar, Jammu Kashmir.,
Chhattisgarh, Manipur,
Arunachal Pradesh,
Nagaland, Uttarakhand.,
Maharashtra, Meghalaya,
Odisha, Himachal Pradesh,
Tripura, Delhi, Sikkim,
Andhra Pradesh, Karnataka,
Mizoram, Tamil Nadu
ANNEXURE- 5 144Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
State-wise Quadrant Strategy for Primary and Secondary Edible Oil Crops
Groundnut
Groundnut
Yield (National Average: 1.77 t/ha)
HighLow
Area
(National Average: 0.20 Mha)
High Gujarat, Rajasthan, Tamil Nadu
Andhra Pradesh, Karnataka,
Madhya Pradesh, Maharashtra
Low
Telangana, west Bengal,
Punjab, Goa, Puducherry
Uttar Pradesh, Odisha,
Chhattisgarh, Jharkhand,
Haryana, Tripura, Manipur,
Uttarakhand, Nagaland,
Arunachal Pradesh, Bihar,
Kerala, Himachal Pradesh
Sesamum
Sesamum
Yield (National Average: 0.52 t/ha
HighLow
Area
(National Average:
0.05 Mha)
HighWest Bengal, Gujarat
Madhya Pradesh, Uttar Pradesh,
Rajasthan
Low
Tamil Nadu, Karnataka,
Telangana, Assam, Tripura,
Nagaland, Meghalaya,
Arunachal Pradesh, Haryana,
Bihar, Mizoram, Puducherry
Andhra Pradesh, Maharashtra,
Chhattisgarh, Odisha,
Jharkhand, Jammu & Kashmir,
Punjab, Uttarakhand, Himachal
Pradesh, Kerala, Dadra and
Nagar Haveli
Sunflower
Sunflower
Yield (National Average: 0.88 t/ha)
HighLow
Area (National
Average :
0. 014 Mha)
HighOdishaKarnataka, Maharashtra
Low
Haryana, Telangana, Bihar, West
Bengal, Punjab, Uttar Pradesh.,
Gujarat, Madhya Pradesh.
Rajasthan
Andhra Pradesh, Tamil Nadu.,
Nagaland, Arunachal Pradesh,
Jharkhand, Chhattisgarh 145Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
State-wise Quadrant Strategy for Primary and Secondary Edible Oil Crops
Nigerseed
Nigerseed
Yield (National Average: 0.31 t/ha)
HighLow
Area (National
Average: 0.012
Mha)
High Odisha, Madhya PradeshChhattisgarh
Low
Assam, Andhra Pradesh,
Jharkhand, Gujarat, West Bengal
Maharashtra, Karnataka
Linseed
Linseed
Yield (National Avg.: 0.60 t/ha)
HighLow
Area
(National Average:
0.012 Mha)
High
Madhya Pradesh, Uttar
Pradesh
Jharkhand, Chhattisgarh
Low
Bihar, Rajasthan, Nagaland,
Assam, Jammu and Kashmir,
Arunachal Pradesh
Odisha, Maharashtra, West
Bengal, Karnataka, Himachal
Pradesh., Meghalaya, Tripura
Rice
Rice
Yield (National Avg.: 2.69 t/ha)
HighLow
Area
(National Average: 2.55 Mha)
High
Punjab, Andhra Pradesh, Tamil
Nadu, Telangana, Haryana,
West Bengal
Uttar Pradesh, Bihar, Madhya
Pradesh, Assam, Jharkhand,
Odisha, Maharashtra,
Chhattisgarh
Low
Chandigarh, Karnataka,
Tripura, Puducherry, Delhi,
Kerala
Meghalaya, Andaman and
Nicobar Islands, Rajasthan,
Manipur, Gujarat, Dadra and
Nagar haveli, Jammu and
Kashmir, Himachal Pradesh,
Sikkim, Arunachal Pradesh,
Mizoram, Daman and Diu,
Nagaland 146Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
State-wise Quadrant Strategy for Primary and Secondary Edible Oil Crops
Coconut
Coconut
Yield (National Average: 9665 nuts/ha)
HighLow
Area (National Average: 0. 28
Mha)
HighTamil NaduKerala, Karnataka
Low West Bengal, Andhra Pradesh
Tripura, Bihar, Chhattisgarh,
Nagaland, Assam, Gujarat,
Maharashtra, Odisha
Cotton
Cotton
Yield (National Average: 0.43 t/ha)
HighLow
Area
(National Avg.:
1.12 M ha)
High Gujarat, Rajasthan, Andhra Pradesh
Maharashtra, Telangana,
Haryana, Karnataka,
Madhya Pradesh
Low
Punjab, Kerala, Jammu and
Kashmir, Odisha
West Bengal, Tamil Nadu,
Meghalaya, Chhattisgarh,
Puducherry, Uttar Pradesh,
Nagaland, Tripura,
Mizoram, Assam
Castor
Castor
Yield (National Average: 1.81 t/ha)
HighLow
Area
(National Avg.:
0. 05 M ha)
HighGujaratRajasthan
LowNil
Andhra Pradesh, Telangana,
Maharashtra, Odisha, Tamil
Nadu, Madhya Pradesh,
Karnataka, Haryana, Assam,
Nagaland, Arunachal
Pradesh, Bihar, Jharkhand
Meghalaya, West Bengal 147Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Targeted Crop Strategies
with Institutional Support
and Technologies
ANNEXURE- 6
i) Soybean
Intervention ImpactPre-requisite
Broad Bed and
Furrow (BBF)
method of sowing
Enables increasing the income through farm-
level productivity gains of at least 20-25 %.
Provision of BBF equipment
on custom hiring basis;
Awareness by State
Department / ATMA
Provision of quality
seed
Ensures increasing the income by 15-20
% due to higher seed replacement with
the latest varieties suiting the given agro-
ecological conditions.
Seed rolling plan through
institutional arrangements
(region / state based seed
hubs/seed villages)
Optimum Seed
rate
The seed rate on the farmers’ fields is high
and hovers around 75-85 kg/ha as against
the recommended seed rate at 65 kg/ha.
Farm level costs can be reduced by 10-15%.
Demonstrations; Awareness
by State Department /
ATMA
Seed inoculation
and seed
treatment
Seed inoculation with 500 g per 65 kg
seed. Bradyrhizobium japonicum culture +
PSB @ 500 g per 65 kg seed ensures cost
reduction by increased N fixation and P
availability.
Seed treatment with Trichoderma ensures
protection against soil-borne diseases and
ensures a 10 % increase in income.
Ensure availability through
Bio control labs; method
demonstrations
Intercropping
Intercropping with pigeon peas enables
higher income and also mitigates the risk of
crop failure.
Demonstrations; Awareness
by State Department /
ATMA
Weed Management
Weed management through herbicides
increases the income by 20-25
%.
Method demonstrations;
Awareness by State
Department / ATMA
Need-based plant
protection
Need-based plant protection applications
can ensure a 25 % increase in income
after factoring out the cost towards plant
protection
.
Cluster-based
Demonstrations 148Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Targeted Crop Strategies with Institutional Support and Technologies
Intervention ImpactPre-requisite
Lifesaving
irrigation
Lifesaving irrigations at the flowering
and pod formation stage can increase
the income by 15 %.
Micro irrigation (sprinklers)
Other intervention
Creating value chains on a cluster
basis in the Malwa region through skill/
entrepreneurship development for protein-
based food products and fortification can
provide additional income and increased
employment generation.
ii) Groundnut
Intervention ImpactPre-requisite
Broad Based
Furrow (BBF)
method of
sowing
Enables increasing the income through
farm-level productivity gains of at least
20%, especially in drought-prone areas of
the country. The BBF technology facilitates
drainage facilities during periods of excess rains
and acts as a soil moisture measure during dry
spells.
Provision of BBF equipment
on a custom hiring basis
Provision of
quality seed
Ensures increasing the income by 20-
25 % due to higher seed replacement
with the latest varieties suiting the given
agroecological conditions.
Seed rolling plan through
institutional arrangements
(region /state-based seed
hubs). Early maturing
Spanish varieties seed
varieties are to be given
emphasis, especially in
drought-prone areas of
Andhra Pradesh, to combat
the changing trends in the
LGP.
Reduce seed
rate
Farm-level grading of the small and high-
quality kernels for sowing purposes can
reduce the cost by 10-15%.
Awareness by State
Department / ATMA.
Seed
inoculation
and seed
treatment
Seed inoculation with Rhizobium can
stimulate N fixation and reduce the Inorganic
fertilizer requirement in the long run.
Seed treatment with Captan, Thiram (3 g/
kg of the kernel) and Trichoderma (10 g/
kg of the kernel), deep ploughing and soil
application of neem /castor cake (500 kg/
ha) is recommended to control stem rot.
Ensure availability of
quality bioagents/inoculants
through Bio control labs.
Inter cropping
Inter cropping with castor / redgram in
the districts of Anantapuram and Kurnool
(A.P); Chitradurga, Tumkur, and Bellary (KA)
can result to increased income by 15-20 %
considering the shifts in the LGP evidenced
in the above districts during the last decade.
Large scale demonstrations/
Awareness by State
Department / ATMA. 149Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Intervention ImpactPre-requisite
Inorganic
fertilisers
Replace DAP with SSP. It ensures cost
reduction at the farm level.
Apply Gypsum @ 500 kg / ha once in two
years. Enables for better pod formation
coupled higher oil content thereby resulting
to higher output price.
The cumulative effect on the income could
be 15-20 % due to the above interventions
Soil testing facility and
recommendation/ ensuring
supply of inputs
Secondary
and Micro
nutrients
Application of Zinc Sulphate: Soil application
in furrows @ 10-20 kg/ha in Andhra Pradesh,
Bihar, Haryana, Karnataka, Madhya Pradesh
and Uttar Pradesh
Borax: Soil application in furrows @ 5-10
kg/ha Andhra Pradesh, Gujarat, Karnataka,
Maharashtra, Madhya Pradesh and Tamil
Nadu.
Iron: Foliar application of 0.15% ferrous
sulphate + 0.15% citric acid in Gujarat,
Karnataka, Tamil Nadu and Maharashtra
The secondary and micro nutrients can
enhance the net income by 10-15%.
Soil testing facility and
recommendation/ ensuring
supply of inputs
Irrigation
Irrigations at critical stages (2-3) can enhance
the yield and income by 25-35 %.
Infrastructure for Micro
irrigation/ sprinkler
Need-
based plant
protection
Spraying of neem seed extract @ 5% or crude neem oil in teepol @2%
against foliar fungal diseases and sucking insect pests and Spodoptera.
Seed treatment with Trichoderma harzianum @ 4g/kg seed against soil-
borne pathogens or soil application of Trichoderma sp. as per local
recommendation (or 25 kg/ha).
Soil application of phorate granules 10 G @ 25 kg/ha or carbofuran 3 G @
10 kg/ha against white grub and termites.
Use of pheromone traps @ 10 /ha and Spray of Spodoptera NPV @ 250
LE/ha or Bacillus thuringiensis @ 1.5 kg/ha.
Digging of drenches around the fields to avoid the dispersal of larvae
of red hairy caterpillars. Spraying of crude neem oil in tempol @ 2% or
chlorpyrifos EC 0.05% or dimethoate EC 0.03% for controlling leaf miner.
Spray of Helicoverpa NPV @ 250 LE/ha or Bacillus thuringiensis @ 1.5 kg/
ha for controlling Helicoverpa
Ensure the availability of biopesticides through Bio control labs.
Targeted Crop Strategies with Institutional Support and Technologies 150Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Intervention ImpactPre-requisite
Other
intervention
Gujarat: Emphasis on HPS Groundnut for
exports/cluster approach in the districts of
Kutch, Jamnagar, Bhavnagar, Junagadh and
Vadodara. The income enhancement envisaged
is 30-40%.
Telangana: Cluster-based seed production
hubs in Mahbubnagar, Karimnagar, Nalgonda,
Rangareddy, and Warangal can ensure an
enhanced income of 25 %. It also stimulates
local employment opportunities.
Andhra Pradesh: Bold-seeded varieties for table
purposes in YSR Kadapa, Chittoor district, can
enhance the farm income by 25%.
Rajasthan: Focus on Bold seeded varieties for
export/table purposes. The income increase at
the farm level could be 25-30 %.
Processing of edible oils on cluster approach
can enhance income by 25-30%. Explore the
creation of CIG / FPOs/SHG/ for the promotion
of pressed oils.
iii) Rapeseed-Mustard
Intervention ImpactPre-requisite
Furrow Irrigated
Raised Bed
Enables increasing the income through
farm level productivity gains of 10% and
saves 30% water requirement.
Provision of equipment on a
custom hiring basis
Tillage operations
Minimal tillage operations (3-4) as
against the conventional (6-8) ensure
improving soil health with no economic
loss. Cost towards labour is reduced by
10%.
Awareness through
Developmental agencies /
ATMA
Provision of quality
seed
Ensures increasing the income by 15-
20 % due to higher seed replacement
with suitable varieties suiting the given
agroecological conditions.
A special seed production programme
is to be developed for UP to increase
coverage under the recommended
varieties.
Explore massive seed production for
varieties with low erucic acid to ensure
a higher premium price (10-15 %) over
the traditional varieties.
Seed rolling plan through
institutional arrangements
Targeted Crop Strategies with Institutional Support and Technologies 151Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Intervention ImpactPre-requisite
Higher seed rate
Adopt higher seed rate and spacing
(45x15) in limited rainfall/moisture
regions. The income increase would be
approximately 10-15%.
Awareness through
Developmental agencies /
ATMA
Seed inoculation
and seed treatment
Seed dressing with Azotobacter
enhances seed yield by 15-20% besides
saving 25 kg N/ha, adding to net
income by 10-15%.
Seed treatment with PSB increases
the income by 25% through increased
productivity of 30%.
Seed treatment with Trichoderma @5g/
kg of seed enables control of Sclerotinia
and Alternaria, providing 10% additional
net income at the farm level.
Ensure availability through
Bio control labs; Awareness
through Developmental
agencies / ATMA; Use
of ICT for technology
dissemination
Need-based plant
protection.
Seed treatment with Carbendazim @ 2.0
gm/kg seed in Sclerotinia-affected areas
and with Apron 35 SD @ 6g/kg in the
white rust-affected areas enhance the
net income by 10-15%.
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Inorganic fertilisers
Replace DAP with SSP. It ensures cost
reduction at the farm level.
Apply Gypsum @ 500 kg/ha once in
two years. Enables for better seed set
coupled with higher oil content, thereby
resulting in higher output price.
The cumulative effect on the income
could be 15-20 % due to the above
interventions.
Soil testing facility
and recommendation
/ Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Intercropping
Intercropping with chickpea (1:4), lentil
(1:5), and wheat (1:9) for increased
income of 10-15%.
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Irrigation
Irrigation through sprinkler/drip
enhances the net income by 20-
25 % and reduces irrigation water
requirement by 50%, besides lowering
the requirement of nitrogen fertilizer by
25%.
Infrastructure for drip/
sprinkler systems;
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Targeted Crop Strategies with Institutional Support and Technologies 152Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Intervention ImpactPre-requisite
Secondary and
micronutrients
Basal application of 40 kg S/ha through gypsum or elemental sulphur
to the mustard crop increases the net income by 15-20 % through
increased oil content ( 2% ) and productivity by 20- 25%.
Basal application of 5 kg Zn/ha to mustard crops improves the yield
and income by 10-12 %.
Application of Boron as a basal dose of 1 kg/ha or 2 foliar sprays of
0.25% boric acid at 40 and 60 days after sowing increases mustard
seed yield by 20% with net economic gains of 15%.
Soil testing facility and recommendation / Awareness through
Developmental agencies / ATMA; Use of ICT for technology
dissemination
Rapeseed-Mustard
Explore possibilities of creation/
involvement of FPOs in Rajasthan, Madhya
Pradesh, and Maharashtra for value
addition. This can enhance the income by
25%.
iv) Sesame
Intervention ImpactPre-requisite
Method of sowing
Line sowing; sowing through seed drill
with attachment for line sowing can enable
enhanced productivity through optimum
plant population besides facilitating
intercultural operations. The income can
be enhanced by 15-20%.
Provision of equipment on
a custom hiring basis; seed
pelleting
Tillage operations
Ensuring fine tilth with weed-free /
levelled conditions for better plant stand
can enhance income by 15 %.
Awareness through
Developmental agencies /
ATMA/ Custom hiring facility
for rotavator
Provision of quality
seed
Ensures increasing the income by 20-
25 % due to higher seed replacement
with suitable varieties suiting the given
agroecological conditions.
A special seed production programme
is to be developed for Bundelkhand
to increase coverage under the
recommended varieties for realizing a
higher income of 15-25%.
Seed rolling plan through
institutional arrangements
(region /state-based
seed hubs/seed village/
demonstrations)
Intercultural
Two weeding at 15-20 days and at 35-40
days enhances income by 20%.
Awareness through ATMA;
Use of ICT for technology
dissemination
Gypsum application
The application of gypsum enhances the
net income by 15 %.
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Targeted Crop Strategies with Institutional Support and Technologies 153Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Intervention ImpactPre-requisite
Seed inoculation and
seed treatment
Seed dressing with Azotobacter enhances
seed yield by 15-20% besides saving 25 kg
N/ha, adding to net income by 10-15%.
Seed treatment with PSB increases
the income by 25% through increased
productivity of 30%.
Seed treatment with Trichoderma @5g/
kg of seed enables control of seed-borne
diseases, providing 10% additional net
income at the farm level.
Seed treatment with Thiram/ captan @3g
/kg of seed.
An income increase of 15-20 % is
attainable through the seed inoculation/
treatment
Ensure availability through
Bio control labs; Awareness
through Developmental
agencies / ATMA; Use of ICT
for technology dissemination.
Intercropping
Proven intercropping technology with
groundnut, soybean, green gram, black
gram, and pigeon pea has been evidenced
to enhance the net returns by 20-25%.
This needs large-scale replication in
Rajasthan, Uttar Pradesh, Madhya Pradesh,
Gujarat, and West Bengal.
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Need-based plant
protection.
Need-based plant protection to control
leaf roller and capsule borer, gall fly,
blight, stem and root rot; leaf spots can
result in an additional net income of 20-
25%.
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Other intervention
Emphasis on bold-seeded sesame in select
agro-eco regions of Gujarat, Madhya
Pradesh, Rajasthan, Telangana, and
Karnataka for export purposes.
Identify niche areas for Organic sesame in
niche areas of the country (NEH)
Promotion of processing of sesame
oil as a level industry through SHG/
entrepreneurship/FPOs.
v) Sunflower
Intervention ImpactPre-requisite
Optimum spacing
and thinning
Sowing with spacing of 60cm x 30 cm
can increase income of 15%.
Demonstrations /
Awareness through
Developmental agencies /
ATMA
Targeted Crop Strategies with Institutional Support and Technologies 154Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Intervention ImpactPre-requisite
Provision of quality
seed
Saturating the area with the most
promising hybrids can ensure increased
income due to the cumulative effect of
increased yield and higher oil content.
Seed rolling plan through
institutional arrangements
Seed Hardening
Reduced seed rate, ensures better
germination for optimum plant stand
resulting to 20% increase in farm
level income through productivity
enhancement.
Demonstrations /
Awareness through
Developmental agencies /
ATMA
Seed inoculation
and seed treatment
Seed dressing with Azatobacter +
Azospirillum increases yield by 15-20%
besides saving of 25 kg N/ha adding to
net income by 10-15%.
Seed treatment with PSB increases
the income by 25% through increased
productivity of 30%.
Seed treatment with Trichoderma @5g/
kg of seed enables control of seed
borne diseases providing 10% additional
net income at the farm level.
Ensure availability through
Bio control labs; Awareness
through Developmental
agencies / ATMA; Use
of ICT for technology
dissemination.
Application of
Borax
Foliar application of boron (Borax 0.2%)
at the ray floret opening stage fosters
higher seed set and results in increasing
the net income by 10-15%.
Demonstrations ; Awareness
through Developmental
agencies / ATMA; Use
of ICT for technology
dissemination
Intercropping
Inter cropping for the recommended
agro ecological situations can lead to
income increase by 15-20%. (Sunflower
+ Groundnut; Sunflower + Pigeon pea;
Sunflower + Sorghum)
Demonstrations ; Awareness
through Developmental
agencies / ATMA; Use
of ICT for technology
dissemination
Soil-based INM
Improves seed yield and oil content and
enhances the income by 20-25%.
Ensures cost reduction in the long run
with respect to fertiliser usage
Ensure availability of
Soil testing facility, SSP,
Sulphur, Boron, and Zinc;
Large scale cluster-oriented
demonstrations; Awareness
through Developmental
agencies / ATMA; Use
of ICT for technology
dissemination.
Need-based plant
protection.
Seed treatment with Metalyxyl @ 6g/
kg against downy mildew; Imidacloprid
@ 6g/kg against sucking pests for
SND; Prophylactic spray of bavistin for
Alternaria, wettable sulphur for Powdery
mildew, can add to the net income by
15-20%.
Demonstrations; Awareness
through Developmental
agencies / ATMA; Use
of ICT for technology
dissemination
Targeted Crop Strategies with Institutional Support and Technologies 155Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Intervention ImpactPre-requisite
Need-based
irrigation
Need-based irrigations (2-4) enables an increase in yield and thereby
on income by 25-30%
Demonstrations: Micro irrigation facility and support for sprinkler and
drip; Awareness through Developmental agencies / ATMA; Use of ICT
for technology dissemination.
Other intervention
The finely chopped thalamus, rich in
fibre and crude protein, when used
as a feed ration for the milch animals,
enhances the fat content, thereby
adding to the higher price realization of
milk.
Apiary (2-3 units) per ha enables
additional income by 15-20%.
vi) Safflower
Intervention ImpactPre-requisite
Optimum spacing
Sowing with the geometry of 45cm
x 30cm and thinning to maintain the
spacing can lead to increasing the
income by 20%.
Demonstrations; Awareness
through Developmental
agencies / ATMA
Provision of quality
seed
The improved varieties should be
multiplied on a massive scale to ensure
them finding a place in the farmers’
fields. The increase in net income could
be as high as 20-25 % by the spread of
the recommended genotypes.
Seed rolling plan through
institutional arrangements
(region /state based seed
hubs, seed village )
Seed inoculation
and seed treatment
Seed treatment with Trichoderma @8-
10g/kg of seed and with Thiram /
Carbendazim @3g/kg seed enables
control of seed borne diseases providing
15-20% additional net income at the
farm level.
Application of Azotobacter/ Azospirillum
25g/kg seed enhances the nutrient
availability.
Seed treatment with PSB increases
the income by 25% through increased
productivity of 15%.
Ensure availability through
Bio control labs; Large
scale Demonstrations
on cluster approach;
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Provision of quality
seed
Promote recommended cultivars
matching LGP and the eco system under
which it is grown.
Seed rolling plan through
institutional arrangements
Targeted Crop Strategies with Institutional Support and Technologies 156Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Intervention ImpactPre-requisite
Seed inoculation
and seed treatment
Seed treatment with Azatobactor,
Trichoderma and PSB enhances the
income by 20%.
Seed soaking before sowing enables
better germination and
plant stand ultimately resulting to 15%
income enhancement.
Ensure availability through
Bio control labs; Large
scale demonstrations;
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Inter cropping
Intercropping with the region
recommended crops can result to 15-
20% additional net income.
Large scale demonstrations;
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Integrated Nutrient
Management
Balanced nutrient management enables
to increase the income by 20% besides
reducing the cost in the long run.
Soil testing facility and
recommendations; Large
scale demonstrations;
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Need based plant
protection
Integrated pest management for control
of wilt, blight, powdery mildew, rust and
bud fly can increase the yield by 20%.
Large scale demonstrations;
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Machinery for
harvesting and
Threshing
Facilitating harvesting and threshing with
combine harvesters reduces the cost
of drudgery of labour and the income
enhancement could be 15-20%.
Provision of combine
harvesting on custom
hiring basis; Large scale
Demonstrations on cluster
approach; Awareness
through Developmental
agencies / ATMA; Use
of ICT for technology
dissemination.
Other intervention
Explore possibilities of creation of FPO’s in Maharashtra, Karnataka,
Telangana for value addition through filtered oils which have high
nutritious value due to the presence of Vitamin E and alpha tocopherols,
phenols. This can enhance the income by 25-35%.
The deoiled seed has high vintage value for the Vitamin E, fibre, protein,
alpha tocopherols that have a positive effect on the small ruminants and
cattle.
Safflower petals: Explore for value addition of petals in select agro
ecological regions.
Targeted Crop Strategies with Institutional Support and Technologies 157Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
vii) Linseed
InterventionImpactPre-requisite
Provision of quality seed
Promote recommended cultivars
matching LGP and the eco
system under which it is grown
Seed rolling plan through
institutional arrangements
Seed inoculation and
seed treatment
Seed treatment with
Azatobactor, Trichoderma and
PSB enhances the income by
20%.
Seed soaking before sowing
enables better germination and
plant stand ultimately resulting
to 15% income enhancement.
Ensure availability through
Bio control labs; Large scale
demonstrations; Awareness
through Developmental
agencies / ATMA; Use of ICT
for technology dissemination.
Inter cropping
Intercropping with the region
recommended crops can result
to 15-20% additional net income.
Large scale demonstrations;
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination.
Integrated Nutrient
Management
Balanced nutrient management
enables to increase the income
by 20% besides reducing the
cost in the long run.
Soil testing facility and
recommendations; Large scale
demonstrations; Awareness
through Developmental
agencies / ATMA; Use of ICT
for technology dissemination
Need based plant
protection
Integrated pest management for
control of wilt, blight, powdery
mildew, rust and bud fly can
increase the yield by 20%.
Large scale demonstrations;
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Other intervention
Value addition for retting and
scotching of linseed fibre through
creation of FPO’s can help in
augmenting the income by 20%.
Creation of small-scale women
driven entrepreneurs / SHG’s for
utilizing the omega 3 rich seed /
oil This can enable for increased
income of 20-25%.
viii) Nigerseed
InterventionImpactPre-requisite
Provision of quality seed
Promote recommended cultivars
matching the LGP and the eco
system under which it is grown
Seed rolling plan through
institutional arrangements
(region /state based seed
hubs)
Targeted Crop Strategies with Institutional Support and Technologies 158Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
InterventionImpactPre-requisite
Seed inoculation and
seed treatment
Seed treatment with 10 g/
kg Azatobactor, 8 g/kg
Trichoderma and 10 g/kg PSB
enhances the income by 20%.
Ensure availability through
Bio control labs; Awareness
through Developmental
agencies / ATMA; Use of ICT
for technology dissemination.
Inter cropping
Intercropping with the region
recommended crops can result
to 15-20% additional net income.
Awareness through
Developmental agencies
/ ATMA; Use of ICT for
technology dissemination
Mixed cropping
Ensuring Seed treatment with
10 g/kg Azatobactor, 8 g/kg
Trichoderma and 10 g/kg PSB
for the pulses and millets in
Eastern Ghat Highland Zone
alongwith niger enhances
improved system productivity
thereby resulting to income
increase by 30%.
Need based plant
protection
Integrated pest management for
control of caterpillar, cutworm,
aphids, semilooper, capsule fly.
Leaf spots, stem/ root rot can
increase the yield and income
by 25%.
Weed management
Cuscuta is a menace in niger farming and controlling through
cultural (Seiving before sowing, brine solution steeping before
sowing, removal of cuscuta infested seedlings of niger) and
chemical methods (Presowing soil application of Fluchloralin, Pre
emergences application of Pendimethalin) can lead to increase
income of 20 % through increased productivity.
Source: IIOR, Hyderabad
Targeted Crop Strategies with Institutional Support and Technologies 159Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Oilseed Self-Sufficiency:
Lessons from the Past
Strategies
ANNEXURE- 7
The Indian agricultural sector has historically centred on oilseeds, which hold the second-
highest importance after food grains. India is one of the largest importers of edible oil,
despite having the title of the world’s fourth largest producer of oilseeds. This trend is
attributed to the rising demand for edible oils in the private and industrial sectors. The
government has implemented various policy changes throughout the post-independence
period to address this persistent demand-supply gap. The agricultural climate in India allows
the cultivation of 9 oilseeds, i.e., rapeseed, groundnut, niger, castor, sunflower, mustard,
sesame, safflower, and soybean, and secondary sources of edible oil include palm oil, rice
bran oil, coconut oil, cottonseed oil, tree-based oilseeds, oilseeds etc. To review past policy
attempts cautiously in the edible oils sector and devise methods to achieve self-reliance
efficiently, it is imperative to review past policy attempts cautiously. These strategies provide
us with a structural foundation on which future decisions can be made judiciously. The
most prominent government interventions in the oilseeds sector (timeline of past strategies
presented below as Figure A7.1), their unique objectives alongside the achievements and
limitations are discussed in the chapter. 160Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Source: Author’s own compilation
Figure A7.1: Past Strategies Timeline
i. Centrally Sponsored Scheme (CSS, 1966-67)
This scheme was one of the first significant endeavours for attaining self-sufficiency
in oilseed crops. Launched by the government during 1966-67, it reflected the aim
of maximizing the production of groundnut. It initially targeted the states of Andhra
Pradesh, Karnataka and Uttar Pradesh and later spread to upcoming groundnut 161Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
growing states such as Gujarat, Maharashtra, Madhya Pradesh, Odisha, Punjab,
Rajasthan and Tamil Nadu in the years 1967-68 and 1968-69.
The scheme continued during the 4th Five Year Plan (1969-74), aligning with the
goals of stable growth and achieving total self-reliance in the agricultural sector of
the economy. Following this initiative, efforts were made in the areas of rapeseed-
mustard (R&M), soybean, sunflower, Niger and castor.
Under the CSS, the states were subjected to strategic changes in the areas of
oilseed crop yield, cultivation and technological prowess. Financial amenities were
centrally provided to the farmers to motivate the use of High Yielding Varieties (HYVs)
of crops and modified production techniques. The scheme encouraged the use of
modern technology in the areas of irrigation and pest control, as well optimization of
resources. It gave farmers the support to explore the upcoming innovations made in
agriculture without the fear of suffering colossal losses. This provided an environment
ideal for farmers to try different methods to maximize the cultivation of oilseed crops.
Although this scheme envisioned ambitious changes in the cultivation of
oilseed crops and subsequent increases in edible oil production, the CSS faced
many drawbacks. This was primarily due to challenges in the implementation of
these strategies in states of varying climatic as well as regional differences. The
demographic of beneficiaries was in line with those of the green revolution, i.e., the
small-scale farmers had limited access while the already affluent farmers adopted
modern methods swiftly. This added to the already worsened regional inequality.
However, the drawbacks were not solely due to execution obstacles, they can
also be linked to unfavourable market conditions caused by recession due to the
wars with China and Pakistan, and the devaluation of currency in 1966. The severe
drought caused the total food production to fall by 20 % in the year 1965-66. This
policy was launched at a time when the agricultural economy of our nation was
already suffering. Thus, the impact could not be as transformative.
The CSS cannot be reviewed as a grand success in the field of edible oil policies
but it is still considered instrumental in recognizing the importance of formulating
public policy to encourage and attain self-sufficiency, which at the time of the 4th
plan was in desperate need of. The successes and loopholes of the CSS provide us
with a foundational background to analyse the further policies made and to form
future ones.
ii. Intensive Oilseeds Development Programme (IODP, 1974-79)
The Intensive Oilseeds Development Programme (IODP) was launched in the year
1974-75 which covered Groundnut, Rapeseed and Mustard, Sesame, Safflower, Linseed
and Castor. It was implemented in the major oilseeds growing states like Andhra
Pradesh, Karnataka, Maharashtra, Tamil Nadu, Gujarat, Madhya Pradesh, Orissa, etc.
The IODP was launched during the 5th Five Year Plan (1974-79) and continued
through the 6th Five Year Plan (1984-89), during which it extended a special project
on Groundnut and Soybean. The 5th year plan focused primarily on employment
generation which tied in with the idea of oilseed production expansion as encouraged 162Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
by the IODP. This aimed at creating rural employment. The 6th year plan’s main
objective was poverty alleviation and improved quality of life. These goals were also
closely linked to self-sufficiency in the agricultural sector, considering India’s agro-
based economic structure.
Like any other initiative, the IODP also faced certain difficulties in its effective
implementation. One recurring problem was t uneven impact of the programme.
The regions with well-developed infrastructure (irrigation facilities, storage, and
transportation) and where farmers had equitable access to resources saw more
substantial improvements in production, while other areas with constraints saw limited
growth. This uneven distribution reduced the overall impact of IODP on domestic
production and imports.
iii. National Oilseeds Development Project (NOPD, 1984-85)
Under acute foreign exchange shortage and rising imports of edible oils, the National
Oilseeds Development Project (NODP) was initiated in the year 1984-85, as an import-
substitution strategy. It combined all the CSS across the country. The objectives of this
project were integrated with the other CSS and hence consisted of the expansion of
the area under oilseed cultivation, adoption of HYV oilseeds, financial support along
with technology modernization.
NOPD was launched during the 6th Five Year Plan period (1984-85) and continued
during the 7th Five Year Plan (1985-86). The 7th Five Year Plan had the main goal
of increasing economic growth through agricultural production and employment
generation. The project covered major oilseeds producing states of India and aimed
at accelerating regional production.
This government initiative had benefits similar to the previously discussed
Centrally Sponsored Scheme. These were in the form of increased rural participation
and employment opportunities, knowledge dissemination and growth in domestic
production of edible oilseed crops and oil. With each government policy initiative,
the results in these areas of success kept improving. Hence, although the results of
domestic oilseed production weren’t tremendous, they were still better than that
pre-NODP.
The NODP effectively only had a year to stimulate a desirable growth rate in
oilseeds production. Thus, execution challenges did not get enough time to correct
themselves, together with other loopholes in the policy. Despite such flaws in the
project, it contributed to the successive policies formed thereafter.
iv. Technology Mission on Oilseeds (TMO, 1986)
The Technology Mission on Oilseeds (TMO) was launched in 1986 to increase the
production of oilseeds, pulses, and maize. This was another attempt at reaching self-
reliance in edible oil and reducing import dependency. The mission aimed at doing
so by dissemination of modern technology and better farm practices, easing the
availability of various types of oilseed crops and HYV seeds, strategizing post-harvest
techniques to minimize losses and increase shelf life, and encouraging research and
development in oilseeds, pulses and maize. Schemes for price support, storage,
processing and marketing were initiated as well. 163Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
TMO was launched alongside the continuation of the NODP on a 50:50 sharing
basis between the Central and State Governments. A special project entitled Oilseeds
Production Thrust Project (OPTP) was also established, with 100% assistance from the
Central Government. The OPTP was initiated to accelerate the growth of four major
oilseeds crops, i.e. groundnut, mustard, soybean and sunflower, which constituted 85%
of the total oilseeds production. A sum of 246 districts in 17 States, including 151 NODP
districts was included in this programme. These programmes continued under the
nomenclature of TMOP till 2003-04 with 100% assistance under OPTP up to 1990-91
and, thereafter, as a single oilseed production programme on a 75:25 sharing basis.
There were various schemes initiated under the TMO, such as (i) Oil Palm
Development Program, (ii) Oilseeds Production Program, (iii) National Pulses
Development Project, (iv) Post-Harvest Technology, (v) Accelerated Maize Development
Program, and (vi) National Oilseeds and Vegetable Oil Development Board.
This mission was started during the 7th Five Year Plan (1985-1990), which
highlighted the importance of upgrading technology in improving the productivity
of the economy. TMO aligned with this objective and focused thoroughly on the
adoption of modern technology in agriculture. It aimed at reducing the heavy imports
of edible oils by the end of the 7th Five Year Plan and consequently achieving self-
reliance by the end of the 8th Five Year Plan.
The Department of Agriculture & Cooperation (DAC) was leading the role of
providing input and service support to farmers. By 1995, DAC started a Rs. 170-crore
National Oilseeds Development Project, in 180 districts located in 17 States. This
was done to establish a diverse range of services to farmers, unique to their agro-
climatic conditions, local practices, level of infrastructure, and availability of resources.
These services encompassed the distribution of seeds, fertilizers and bio-fertilizers,
pesticides, implements and credit. Later on, projects were established by ICAR like
Operation Research Project, National Demonstrations and Krishi Vigyan Kendras, to
spread improved technology.
The NODP and OPTP were subsequently merged into the Oilseed Production
Programme (OPP).
The success of TMO was seen in the development of around 40 new varieties of
oilseed crops. The yield potential of these crops was four times the national average
under research farm conditions and at least twice the national average under normal
farm conditions. The first three years of the mission saw a 193% spurt in the production
of breeder seeds. The Council of Scientific and Industrial Research (CSIR) introduced
batch-type processes for rice bran stabilization and sunflower decortication, and
improved expellers, in the year 1988-89. Edible oil consumption volumes experienced
a growth of 4% in the period from 1998-99 to 2001-02 under the TMO.
However, the achievements made under the Integrated Policy on Oilseeds (IPO)
are of paramount importance. The IPO was followed by the Market Intervention
Operation (MIO), which is another pioneering initiative in the edible oils industry.
The IPO was a recommendation made by the TMO to the government in 1988
and was formally adopted by the government in January 1989. It was set to tackle 164Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
the lack of integration between different Ministries and Departments. Thus, the IPO
gave an integrated approach to the oil economy. The aim was to integrate oilseed
production, import, distribution and pricing. The IPO had 5 core elements : (i) Farmers
were to be provided with government support in the purchase of inputs, technology,
etc. (ii) Fixation of a price band, (iii) An Empowered Committee was established,
headed by the Cabinet Secretary, to monitor the implementation of the Integrated
Policy, (iv) NDDB was appointed as the Market Intervention Agency (MIA), and (v)
Evaluation of the Public Distribution System such that they do not detriment interests
of farmers, and issue prices to vanaspati industry. Imported prices would not be
supplied at prices lower than domestic costs of production.
The Technology Mission on Oilseeds was a policy breakthrough in the industry of
edible oils. It provided an integrated approach to an industry that lacked coordination.
The advancements made during the TMO paved the way for the success of many
current government missions. However, the impact of the TMO was constrained in
many areas by the recurring issues of inadequate infrastructure, lack of essential
facilities like cold storage, unavailability of advanced technologies, and financial
limitations of small and marginal farmers. The increasingly favourable returns in wheat
and rice led to a decline in oilseed acreage, which lowered oilseed production. This
limited the extent of the regional success of the TMO.
v. Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM, 2004-05)
The Technology Mission on Oilseeds was restructured as the Integrated Scheme of
Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) in the year 2004-05. As a new CSS,
ISOPOM now included oil palm and continued during 2013-14 on a 75:25 sharing
basis between the Central government and the State governments. ISOPOM was
implemented in 14 potential states for oilseeds and pulses, 15 states for maize and 12
states for oil palm. The ISOPOM oil palm states include Andhra Pradesh, Karnataka,
Tamil Nadu, Gujarat, Goa, Orissa, Kerala, and Mizoram.
The Department of Agriculture & Cooperation implemented four Centrally
Sponsored Schemes under TMOP&M: (i) Oilseeds Production Programme (OPP), (ii)
National Pulses Development Project (NPDP), (iii) Accelerated Maize Development
Programme (AMDP), and (iv) Oil Palm Development Programme (OPDP). During
the 10th Five Year Plan, these four schemes were modified and combined into one
Centrally Sponsored Scheme of Pulses, Oil Palm, Oilseeds, and Maize, i.e. ISOPOM.
The goals of the 10th Five-Year Plan followed the lines of consistent GDP growth,
poverty alleviation and employment generation. India being an agriculture-based
economy with more than half of the population residing in rural areas, tapping into
areas such as oilseed crops and edible oil production, provided the immense potential
for employment opportunities and increasing GDP by growing domestic production.
The Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize had some core
unique features. Firstly, it allows state governments to utilize the funds for the crop/
area of their choice, by regional requirements. This was essential to curtail the regional
disparities caused by the unequal distribution of HYV seeds, technology and other 165Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
agricultural amenities. The State governments had the liberty of formulating an annual
action plan which would be approved by the Central government. Thus, this gave
states flexibility to introduce innovative techniques/schemes to the extent of 10% of
financial allocation.
Under ISOPOM, private sector participation was also actively incentivized by
State Governments following a financial cap of 15%. This was done post-liberalization
to increase involvement and contribution, which the public sector lacked.
The trend of the area was targeted and achieved from 2004 onwards during
ISOPOM under the Oil Palm Development Programme, which saw a gap of no more
than 3000 hectares. The total area under Oil Palm cultivation in India grew from 8321
hectares (2004-05) to 17925 hectares (2010-11).
The area of cereals and oilseeds increased during the period while the area of
Pulses decreased. The total production of cereals, pulses and oilseeds also witnessed
an increase during the period. ISOPOM had visible impacts on the increase of edible
oil production and oilseed crop production. However, it is hard to attribute these
successes solely to ISOPOM. The National Food Security Mission was launched in the
year 2007 and had objectives overlapping with those under ISOPOM.
Similar to the setbacks faced by the preceding missions and schemes, ISOPOM
also suffered implementation challenges. These were however less detrimental as the
policy established integration and close coordination between the Central and State
governments, and the various Ministries and Departments involved.
Another loophole in its execution was regarding insufficient support to processing
units. Fresh fruit branches (FFBs) of oil palm must be processed within 24 hours of
harvesting. Such lack of oil palm mills dissuaded farmers from expanding the area of
oil palm plantations, this was particularly an issue in Mizoram. In many states where
plantations started bearing FFBs, cultivators took to destroying their yield in the
absence of adequate provisions for processing them.
The Indian economy as a whole also saw an increase in the GDP growth rate
during the early years of the 2000s. This provided producers with a relatively stable
market dynamic as compared to market and economic conditions during the launch
of previous strategies in the oilseeds sector.
vi. Oil Palm Area Expansion (OPAE, 2011-12)
The Oil Palm Area Expansion (OPAE) was launched with the aim of bringing 6000
hectares of land under oil palm cultivation during the year 2011-12. It was sought
to do so through farmer incentives in the form of planting material, compensation
for losses during the gestation period, pump set, drip irrigation system, support for
intercropping, vermicompost pit, bore wells/water harvesting tanks/fertigation tanks,
PP chemicals/INM/IPM/fertigation/tree guards, etc.
This scheme was very ambitious in its endeavour to rapidly grow the area under
oil palm production. Oil palm plantations have a gestation period of 4 years, during
which the government would provide necessary support to the growers. The farmers
were also encouraged by the government to grow intercrops during the gestation 166Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
period (until the oil palm started bearing fresh fruit branches). Funds amounting to
Rs 151.50 crore were allocated for the 3 years, 2012 onwards.
The problem of expanding the area under oil palm cultivation had surfaced during
the Oil Palm Development Programme under ISOPOM. After cultivators requested
the Government of India to provide appropriate amenities, the government, through
OPAE, decided to grant subsidies for setting up oil palm mills through the State
Department of Agriculture. A subsidy of 50% of the cost of plant and equipment,
limited to Rs. 250 lakh per unit of 5 MT/hour FFBs capacity through the State
Department of Agriculture, was allocated. This was proposed to maintain farmer’s
confidence and further encourage potential but hesitant cultivators of oil palm.
Moreover, OPAE undertook many research and development initiatives through
the State Department of Agriculture / Horticulture. This was done in an attempt to
devise methods to promote area expansion and confidence building among oil palm
growers.
This discrepancy can be attributed to factors such as execution limitations, the
negative ecological effects of oil palm cultivation (deforestation, soil pollution, erosion,
etc.), farmer scepticism due to the long gestation period, insufficient means to correct
soil damage and processing/storage issues of FFBs.
vii. National Mission on Oilseeds and Oil Palm (NMOOP, 2014-15)
ISOPOM was restructured into the National Mission on Oilseeds and Oil Palm (NMOOP)
in the year 2014-15. The target set by the mission was to achieve the target production
of 9.51 MT of vegetable oils (TBOs, Oil Palm, and Oilseeds) from 7.06 MT.
It was launched to increase the productivity of oilseed crops and oil palm
along with their production. It sought to bring fallow areas under oilseed crops and
diversification of area from low-yielding cereals, for the same. Funding of research
and development, together with technological intervention, was given paramount
importance. The funding scheme for NMOOP follows a 75:25 ratio of sharing between
the State and Central Governments.
The results of ISOPOM exposed the need for strong research backing for a
successful mission. Provisions were specifically made to correct the issues of region-
specific disparity and to extend technological dissemination to the grassroots level.
This mission was strictly in line with the goals of the 12th Five-Year Plan.
• NMOOP had three micro missions:
• Micro-mission 1 was based primarily on oilseed crop expansion in a total of 19
states. It targeted an increase in oilseeds production to 35.51 MT in the 12th Plan.
• Micro-mission 2 was focused on Oil Palm cultivation and productivity maximization,
initiated in 19 states. The goal was to bring 1.25 Lha area under oil palm cultivation
through the conversion of wasteland into palm plantations. FFBs productivity was
also aimed to rise to 15000 kg per hectare. It also promoted inter-cropping in
oilseeds plantations with cereals(pulses) and sugarcane. 167Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
• Micro-mission 3 was for TBOs. This was a fairly new venture in the edible oil sector
and initiated in 28 states, which aimed at growing seed collection of TBOs to 14
lakh tonnes. Inter-cropping was encouraged by this mission as well.
The mission aimed to increase edible oil production by bringing a target of 75,000
hectares of area under palm cultivation, with special emphasis on Northern-Eastern
states. Farmers were to be assured assistance through financial amenities during the
production process, the Market Intervention Scheme (offering good FFBs prices in lieu
of the international trends in Crude Palm Oil prices), and other agricultural services.
The production of the 9 oilseeds has not seen continuous growth over the
duration of the mission. The fluctuations can be attributed to state-specific issues.
These were recorded by the National Food Security Mission (NFSM) in the form of
state-wise progress reports.
In many states, the Oil Palm Development Programme did not reach satisfactory
levels. The gap between the target fixed and achievements can be attributed to
irregular progress reports, unforeseen halts of the mission in some states and
insufficient and delayed efforts (expenditure, proposals, projects, etc.) from State
governments and Departments. Although opulent states such as Andhra Pradesh,
Gujarat, Haryana and Karnataka saw substantial growth in oilseeds production and
oil palm area expansion, the aggregate production figures were pulled down by the
improper implementation.
NMOOP provided satisfactory growth in oilseeds and oil palm production
in several states and gave states that struggled with accelerating production an
opportunity to employ new technologies and agricultural methods, with support from
the government. NMOOP propelled the growth of the production and area expansion
under oilseeds crops and has been the foundation of the current agricultural policies
made in the oilseeds sector. Its emphasis on oil palm and state-specific application has
been a pioneering force in the growth of oilseeds cultivation and edible oil production.
viii. National Mission on Edible Oils and Oil Palm (NMEO-OP, 2018-19)
During 2018-19, the vegetable oil imports had increased by more than 3%. This
revealed the immediate need to bridge the growing gap between India’s demand
for edible oils and the domestic supply. To minimize such dependency on imports,
the government of India launched a new mission.
The NMOOP was merged with the National Food Security Mission as NFSM-
OS&OP, which has been subsumed by the National Mission on Edible Oils and Oil Palm
(NMEO-OP). This is the current mission being implemented in the oilseeds sector.
The NMEO-OP has targeted an increase of oil palm area to 10 Lha from 3.5 lakh
ha during 2019-20 by 2025-26). 3.22 lakh ha is targeted for the states in general and
3.28 lakh ha in North Eastern states with targeted FFBs production of 66.00 lakh
tonnes. An Increase in consumer awareness to maintain a consumption level of 19.00
kg/person/annum till 2025-26, is another vision of NMEO-OP. 168Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Special aid is to be provided to farmers under this mission. Those opting for oil
palm cultivation will get price assurance from the government. This is to encourage
domestic growth and reduce edible oil dependency on imports. The edible oils market
has the potential to flourish in India and it is an excellent opportunity for farmers to
capitalize. The scheme also directs particular stress on the North-Eastern states along
with Andaman and Nicobar Islands, which have a conducive agricultural environment
for oilseed crops but lack infrastructure and institutional backing.
The mission plans on reaching its seedling production targets through seed
gardens and oil palm nurseries. It aims to increase FFBs productivity, drip irrigation
facilities and encourage diversification of area from yielding cereals cross to oil palm
and intercropping during gestation periods, in order to guarantee income amidst
zero production. The aforementioned stakeholders are the centre of this mission’s
successful execution.
As of now, there is insufficient data and too early on in the mission’s endeavour
to be able to judge its impact. However, it being the culmination of decades of
government efforts and experience in the edible oils sector promises the success of
NMEO-OP.
Past policy initiatives in the oilseeds sector serve as a valuable foundation
for shaping future strategies. These initiatives have demonstrably contributed to
sectoral growth, reduced import dependence, and enhanced food security. However,
their implementation has also revealed sustainability concerns that need careful
consideration. Through a critical analysis of past policies, including their achievements
and shortcomings, we can gain valuable insights to address future challenges and
opportunities in agricultural development. By understanding the successes and
limitations of previous approaches, we can propose more effective strategies that
promote sustainable productivity, consistent research and development, and ultimately,
achieve self-reliance in edible oils. 169Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Acknowledged Sources
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Acknowledged Sources
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Acknowledged Sources
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Acknowledged Sources
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
ACKNOWLEDGED
SOURCES 171Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
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Edible Oil towards Goal of Atmanirbharta Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Glimpse of Primary survey conducted by NITI Aayog in 7 states
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Glimpse of Primary survey conducted by NITI Aayog in 7 states
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Glimpse of Primary survey conducted by NITI Aayog in 7 states
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Glimpse of Primary survey conducted by NITI Aayog in 7 states
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
GLIMPSE OF PRIMARY SURVEY
CONDUCTED BY NITI AAYOG IN
7 STATES 179Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Glimpse of Primary Survey Conducted by NITI Aayog in 7 States
Glimpse of Primary Survey
Conducted by NITI Aayog
in 7 States
Field visit to Bharatpur and Alwar, Rajasthan
Field visit to Raisen and Narmadapuram, MP
Field visit to Sheopur, Madhya Pradesh 180Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Field and KVK visit to Jhansi, Uttar Pradesh
Field visit to Karnataka
Field visit to Srikakulam, Andhra Pradesh
Field Visit to Sirsa, Haryana 181Pathways and Strategy for Accelerating Growth in
Edible Oil towards Goal of Atmanirbharta
Field visit to Washim and Buldana, Maharashtra
Stakeholders’ consultations held in NITI Aayog Designed by:

Pathways & Strategy for Accelerating Growth in Edible oil towards Goal of Atmanirbharta