Oilseeds

IBEF

Last updated: May, 2022

Introduction

India is the 4th largest oilseeds producer in the world. India has 20.8% of the total area under cultivation globally and accounts for 10% of global production. The country produces groundnut, soybean, sunflower, sesamum, nigerseed, rapeseed and mustard and safflower oilseeds.

The production of oilseeds in India has been growing for the last five years. In 2020-21, the production of the country was 365.65 lakh tonnes which was a 10% increase from that of the previous year. From the years 2015-16 to 2020-21, the compound annual growth rate (CAGR) of production was 7.7%.

The largest oilseed producing states in India include Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal. Out of these states, Rajasthan, Gujarat, Madhya Pradesh and Maharashtra are the top producers with a share of about 20%, 20%, 19% and 16% of the total production respectively

Export Trend

India is one of the largest oilseeds products exporters. For February 2022, the oilseed export of the country stood at US$ 96.76 million, a 5% increase from the previous month. In FY 2020-21, the total oilseed export of India was US$ 1.24 billion.

Export Market

India exports oilseeds to the US, UAE, Netherlands, China, Singapore, Australia, Belgium, Germany, Indonesia, Hong Kong, Nepal, Saudi Arabia and Italy.

Government Initiatives

In the Budget 2022-23, the government of India allocated a total of Rs. 1,500 crore (US$ 197 million) towards the development of the oilseed industry. Out of this, Rs. 900 crore (US$ 118 million) have been allocated towards the edible oil palm programme and the rest Rs. 600 crore (US$ 79 million) have been allocated to the oilseed programme.

Government Body

Indian Oilseeds and Produce Export Promotion Council (IOPEPC)

The Indian Oilseeds and Produce Export Promotion Council (IOPEPC) was formed in 1956. Its primary aim is to promote and protect India’s export trade in commodities like oilseeds, vegetable oil and oilcake. Besides exports, the council also focuses on strengthening the domestic supply chain by encouraging farmers, sellers, processors, surveyors and exporters to enhance the quality of oilseeds in India.

The functions of IOEPC are the development of oilseed and produce, the procedure for export, promotion of mulching and addressing pesticide-related issues.