India’s oilseeds industry plays a crucial role in the country’s agricultural economy, contributing significantly to food security, rural livelihoods, and export earnings. With rising domestic demand for edible oils and increasing global trade opportunities, the sector has witnessed consistent growth in recent years.
Overview of Oilseeds Industry in India
India is the fourth-largest producer of oilseeds globally, accounting for about 10% of global production and nearly 20.8% of the total cultivated area under oilseeds.
The country produces a wide variety of oilseeds, including:
- Groundnut
- Soybean
- Mustard
- Sunflower
- Sesame
- Safflower
- Niger seed
Despite its large cultivation area, productivity remains a challenge due to the fact that nearly 72% of oilseed farming is rain-fed and managed by small farmers.
Oilseed Production Trends
India’s oilseed production has shown steady growth over the past few years, supported by improved agricultural practices and government initiatives.
- Total oilseed production reached 426.09 million tonnes (LMT) in 2024–25, up from 396.69 LMT in the previous year.
- Soybean production stood at 151.80 LMT, while groundnut production reached 118.96 LMT.
Major Oilseed Producing States
Key oilseed-producing states in India include:
- Rajasthan
- Madhya Pradesh
- Gujarat
- Maharashtra
- Haryana
- Uttar Pradesh
- Karnataka
- Tamil Nadu
Among these, Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra contribute the largest share of total production.
Export Performance of Oilseeds
India is a major exporter of oilseeds and related products. The country exports commodities such as groundnuts, sesame seeds, mustard seeds, soybean, and castor seeds.
- Oilseed exports reached approximately US$ 1.34 billion in FY25.
- In FY26 (April–June), exports stood at US$ 306 million.
Key Export Highlights
- Groundnut exports are primarily sourced from Gujarat and Rajasthan.
- India is one of the top exporters of sesame seeds globally.
- Niger seeds are mainly exported to the USA and other developed markets.
Major Export Destinations
Indian oilseeds are exported to several countries, including:
- Indonesia
- Vietnam
- Philippines
- Malaysia
- United States
- UAE
- Russia
These markets account for a significant share of India’s oilseed export basket.
Government Initiatives Driving Growth
The Government of India has launched multiple schemes to boost domestic production and reduce dependency on edible oil imports.
1. National Mission on Edible Oils – Oil Palm (NMEO-OP)
- Budget allocation of Rs. 11,040 crore in 2025–26.
- Focus on increasing oil palm cultivation and improving yields.
2. National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds)
- Aims to increase production from 39 million tonnes (FY23) to 69.7 million tonnes by FY31.
3. Other Key Programs
- National Food Security Mission (NFSM) – Oilseeds
- Targeted Rice Fallow Area (TRFA) initiative
- Cluster demonstrations and improved seed distribution
These initiatives focus on enhancing productivity, promoting modern farming techniques, and ensuring better input availability.
Role of Key Institutions
Indian Oilseeds and Produce Export Promotion Council (IOPEPC)
Established in 1956, IOPEPC plays a vital role in:
- Promoting oilseed exports
- Enhancing product quality
- Supporting farmers and exporters
- Developing international markets
It also works closely with stakeholders to strengthen the supply chain and improve competitiveness.
Challenges in the Oilseeds Sector
Despite its growth, the industry faces several challenges:
- Low productivity due to rain-fed farming
- High dependence on edible oil imports
- Limited adoption of advanced technologies
- Price volatility in global markets
Addressing these issues is critical to achieving self-sufficiency.
Future Outlook
India’s oilseeds industry is poised for significant growth, driven by:
- Rising domestic demand for edible oils
- Government push for Atmanirbhar Bharat (self-reliance)
- Expansion of oil palm cultivation
- Improved agricultural technologies
With continued policy support and investment, India has the potential to strengthen its position as a global leader in oilseed production and exports.
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