India’s oilseeds production has increased at a compounded annual growth rate (CAGR) of 1.9 percent over the past decade, a Moneycontrol analysis has found. In the financial year 2023-24, oilseed production is expected to be 39.7 million tonnes compared with 32.7 million in FY14.
The government plans to nearly double the production to 69.7 million tonnes within seven years. On October 3, the cabinet cleared a National Mission on Edible Oils (NMEO)-Oil Seeds, allocating Rs 10,103 crore for the 2024-25 and 2030-21 period, to make the county self-reliant in edible oils.
The new mission, focused on oilseeds, follows the NMEO oil palm mission, launched in August 2021.
While India’s oilseed production has remained muted, import dependence has risen. Nearly 70 percent of the country’s edible oil demand is met through imports, This leaving consumers at the mercy of global price fluctuations.
In 2022-23 (November-October), the country imported 16.47 million tonnes of edible oil compared with 11.62 million tonnes in 2013-14.
Edible oils account for 7 percent of spending on food in rural areas and 6 percent in urban areas.
An analysis of inflation data shows that even though prices have been favourable for consumers over the past 19 months, with the category witnessing deflation, oils and fats inflation was above 4 percent for nearly half of the time in the past five years.
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