Relevance: GS-3 (Agriculture, Food Security, Economy)
Source: PIB; Ministry of Agriculture & Farmers Welfare; Economic Survey

India meets nearly 60% of its edible oil demand through imports, making it one of the most import-dependent food commodities. Global disruptions—Indonesia’s palm oil export bans (2022), the Russia–Ukraine conflict, and climate impacts on Southeast Asian plantations—have repeatedly triggered price spikes, hurting low- and middle-income households. This dependency has also contributed to an import bill of ₹1–1.3 lakh crore annually.
To correct this structural vulnerability, the Government launched the National Mission on Edible Oils (NMEO) to raise domestic production, improve farmer incomes and strengthen supply resilience.

Sector Overview and Key Trends

• India consumes ~25 million tonnes of edible oils annually; domestic production is only 10–11 million tonnes.
  
• Imports are dominated by palm oil (55%), soybean oil and sunflower oil.
  
• Productivity of oilseeds in India remains 20–40% below global averages (FAO).
  
• Fragmented processing, rainfall dependence, pest stress (e.g., mustard aphid) and fluctuating global prices constrain the value chain.
  
• Economic Survey identifies edible oils as a core food inflation driver due to pass-through of global prices.
  

National Mission on Edible Oils: Objectives and Targets

The Mission seeks to:

• Reduce import dependence by boosting domestic oilseed and oil palm production.
  
• Increase productivity through high-yielding varieties, hybrid seeds, soil nutrition support, mechanisation and extension services.
  
• Expand oil palm cultivation in 10 lakh hectares long-term, with emphasis on North-East and Andaman & Nicobar Islands.
  
• Enhance infrastructure for processing, storage, and farmer–industry linkages.
  
• Raise domestic edible oil output by 1–1.5 million tonnes over the next few years.
  

Mission Components

1. Oil Palm (NMEO–Oil Palm)

• Support for nurseries, seed gardens and new plantations.
  
• Guaranteed Viability Price for Fresh Fruit Bunches to stabilise farmer income.
  
• Emphasis on climate resilience and water-efficient practices.
  

2. Oilseeds (Mustard, Groundnut, Soybean, Sesame, Sunflower, Safflower)

• High-yielding seed mini-kits, cluster demonstrations and scientific agronomy.
  
• Improved processing and value-addition under AtmaNirbhar Bharat.
  
• Incentives for intercropping and diversification to reduce risk.
  

Implementation 

• Implemented via National Food Security Mission and State Agriculture Departments.
  
• Strengthens Public–Private Partnerships for processing units in oil palm belts.
  
• Convergence with PM-Kisan, PM-Fasal Bima Yojana, and Soil Health Card Scheme.
  
• Real-time monitoring through digital platforms and district-level committees.
  

Other Related Initiatives

Key Takeaways

• Edible oil dependence exposes India to external shocks, price volatility and forex risk.
  
• NMEO blends agronomy, infrastructure, price assurance and diversification to build long-term resilience.
  
• Success hinges on closing productivity gaps, water management, and creating strong farmer–industry ecosystems.
  

India’s edible oil mission aims to convert a long-standing import vulnerability into a strength through technology, incentives and value-chain reform.

Q. “Evaluate the significance of the National Mission on Edible Oils in reducing India’s import dependence. What structural challenges must be addressed for sustained self-reliance?”