National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds)

Posted 14 Nov 2024

Updated 16 Nov 2024

4 min read

Why in news?

The Union cabinet approved National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds) for seven-year period, from 2024-25 to 2030-31.

About National Mission on Edible Oils – Oilseeds

Targets for 2030-31:
- Increase primary oilseed production to 69.7 million tonnes (from 39 million tonnes in 2022-23).
- Increase domestic edible oil production to 25.45 million tonnes and meet around 72% of our projected domestic requirement together with NMEO-OP (Oil Palm).
- Expand oilseed cultivation by an additional 40 lakh hectares by targeting rice and potato fallow lands, promoting intercropping, and promoting crop diversification.
Focus:
- Increasing the production of key primary oilseed crops such as Rapeseed-Mustard, Groundnut, Soybean, Sunflower, and Sesamum
- Enhancing extraction efficiency from secondary sources like Cottonseed, Rice Bran, and Tree Borne Oils.
Key features of the Scheme
- ‘Seed Authentication, Traceability & Holistic Inventory’ (SATHI) Portal: For an Online 5-year rolling seed plan for timely availability of seeds.
  - It will enable states to establish advance tie-ups with seed-producing agencies, including cooperatives, Farmer Producer Organizations (FPOs), and government or private seed corporations.
- Development of 600 Value Chain Clusters across 347 unique districts, covering more than 10 lakh hectares annually.
  - Farmers in these clusters will have access to high-quality seeds, training on Good Agricultural Practices (GAP), and advisory services on weather and pest management.
- Other features:
  - Adoption of high-yielding high oil content seed varieties.
  - Utilization of advanced technologies like genome editing for the development of high-quality seeds.
  - Setting up of 65 new seed hubs and 50 seed storage units in public sector.
  - Information, Education, and Communication (IEC) campaign for awareness of recommended dietary guidelines for edible oils.
  - Support to FPOs, cooperatives, and industry players to establish or upgrade post-harvest units.

Infographic titled "Intended Benefits of NMEO–Oilseeds" with three sections: Atmanirbhar Bharat in oilseeds, environmental benefits (low water usage, soil health), and other benefits (boosting farmer incomes, improving seed infrastructure).

Need for self-sufficiency in Edible Oil

Importance: Oilseeds are the second-largest crop category in India after food grains, with nine annual oilseed crops cultivated across diverse agro-ecological conditions.
Increasing demand: Urbanization and increasing Average Monthly Per Capita Consumption Expenditure (MPCE) in India is expected to increase the consumption of processed foods high in edible oil content.
Increasing import dependence: India is heavily reliant on imports which account for 57% of its domestic demand for edible oils.

Infographic titled "Data Bank" detailing the edible oil sector in India. Highlights include India's rank as the 4th largest player globally, accounting for a significant share of oilseed area and consumption, and being a top importer.

Challenges in attaining self-sufficiency in Edible Oil in India

Lower yield per hectare: The yield gap is primarily due to other countries using genetically modified (GM) herbicide-tolerant varieties.
Cultivation challenges: 76% of oilseed cultivation is rainfed, making it vulnerable to biotic and abiotic stresses.
Crop-specific concentrations: Production of specific oilseeds is concentrated in certain states, calling for policies to encourage more balanced and resilient cultivation.
- E.g. Gujarat, Rajasthan, Tamil Nadu, Andhra Pradesh, and Karnataka collectively contribute 83.4% of the country's total groundnut production.
Demand-Supply Gap: India is projected to maintain high import growth of vegetable oils to meet growing domestic demand.
Low contribution to global palm and sunflower oil production.

Other Steps taken for self-sufficiency

Key programs:
- National Food Security Mission - Oilseeds & Oil Palm (NFSM-OS&OP): Launched in 2018-19, it focuses on Seed components (breeding, production, distribution), Production inputs (equipment, chemicals, fertilizers) and Technology transfer (demonstrations, training).
- National Mission on Edible Oils - Oil Palm (NMEO-OP): Launched in 2021-22, it aims to increase oil palm cultivation area from 3.70 to 10.00 lakh hectares by 2025-26 and focus on North Eastern States and Andaman & Nicobar Islands.
- Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) ensures that oilseed farmers receive MSP through price support scheme and price deficiency payment scheme.
- Rashtriya Krishi Vikas Yojana - RAFTAAR (RKVY-RAFTAAR): Has provisions for crop production related activities on oilseeds.
Other measures:
- MSP for seven key oilseeds, namely groundnut, sunflower, soybean, sesame, nigerseed, rapeseed & mustard, and safflower.
- Imposition of 20% import duty on edible oils to protect domestic producers from cheap imports and encourage local cultivation.
2024 Budget announcements:
- Strategy for self-sufficiency in oilseeds (mustard, groundnut, sesame, soybean, sunflower)
- Focus on research, modern farming techniques, market linkages, and crop insurance.

Yellow Revolution: It was a movement started in 1986–1987 to boost the production of edible oil, particularly from mustard and sesame seeds.

Conclusion

The NMEO-Oilseeds will help increase domestic oilseed output and support hard-working farmers by developing value chain clusters, providing high-yielding, high-oil content seed varieties, and improving overall infrastructure such as seed hubs, seed storage units etc. Furthermore, expanding oilseed cultivation to fallow regions, investments in research and data-driven approaches, as well as public-private partnerships, can be explored to transform the sector.