Introduction
India is the fourth largest oilseeds producer in the world. It has 20.8% of the total area under cultivation globally, accounting for 10% of global production. The country produces Groundnut, Soybean, Sunflower, Sesamum, Niger seed, Mustard, And Safflower oilseeds.
India’s oilseed sector plays a significant role in agricultural exports and overall economic growth, supported by rising production and global demand. As per the department of agriculture and farmers welfare, exports of oil meals, oilseeds and minor oils stood at around 5.44 million tonnes in FY 2023-24, valued at Rs. 29,587 crore (US$ 3.57 billion), highlighting the sector’s strong contribution to export earnings.
The oilseed sector is an important component of the Indian economy, accounting for about 8% of total agricultural exports and contributing 12–13% to dietary energy, while covering 14.3% of the country’s gross cropped area. India is also a leading global producer of several oilseeds such as castor, sesame and groundnut, strengthening its export competitiveness.
As per the Second Advance Estimates (2025–26), oilseed production in India is estimated at 41.0 million tonnes. The sector continues to witness steady growth, supporting farmer incomes, strengthening domestic edible oil availability, and contributing to overall agricultural economic development.
India’s oilseeds production trend (million tonnes)
Source: Directorate of Oilseeds Development (DOD), PIB
Nearly 72% of the oilseed area is restricted to rainfed farming done by small farmers which leads to poor productivity. However, a breakthrough was realized in oilseed production by introducing the latest crop production technologies. The government had set a target of 447 lakh tonnes of oilseed production target for the crop year 2024-25.
The production of oilseeds in India has been growing for the last five years. According to the Third Advanced Estimates for 2024-25, total production of oilseeds was estimated at 426.09 LMT which is higher by 29.40 LMT from last year’s production of 396.69 LMT. The production of Soybean was estimated at 151.80 LMT and the production of Groundnut was estimated at 118.96 LMT, which is higher by 21.18 LMT and 17.16 LMT, respectively than last year’s production.
The largest oilseed-producing states in India include Rajasthan, Madhya Pradesh, Gujarat, Maharashtra, Haryana, Uttar Pradesh, West Bengal, Karnataka, Tamil Nadu, and Telangana. Out of these states, Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra were the top producers with a share of about 24%, 22%, 18% and 14% of the total production, respectively.
Export Trends
India oilseeds exports (US$ million)
Source: RBI Handbook of Statistics, Press Information Bureau, NIRYAT portal
India’s oilseed exports have remained steady, with total exports valued at US$ 1.14 billion during FY26 (April–February 2026). The export basket continues to be driven by key commodities such as groundnuts, sesame seeds, and other oilseeds, reflecting consistent global demand. Groundnut exports accounted for the largest share, contributing US$ 0.66 billion, followed by sesame seeds at US$ 0.39 billion and other oilseeds at US$ 0.09 billion, while niger seeds contributed a relatively smaller portion. The overall export performance indicates stable trade volumes supported by diversified product offerings and strong supply capabilities. From a destination perspective, Indonesia was the leading importer, accounting for US$ 1.80 billion (15.8%), followed by Vietnam at US$ 1.29 billion (11.3%) and Malaysia at US$ 0.91 billion (7.9%). Other major markets included China at US$ 0.75 billion (6.5%), UAE at US$ 0.58 billion (5.1%), and Thailand at US$ 0.49 billion (4.2%).
Additional contributors such as the Philippines, Russia, South Korea, and the USA further highlight the diversified geographic spread of India’s oilseed exports, with a strong concentration in Asian markets alongside presence in developed economies.
Export Market
India’s oilseeds are exported to several global markets, with key destinations including Indonesia, Vietnam, Malaysia, China, the UAE, Thailand, the Philippines, Russia, South Korea, the USA and Bangladesh. During FY26, total oilseed exports stood at US$ 1.21 billion. Groundnut exports were primarily driven by Indonesia (US$ 172.00 million), Vietnam (US$ 105.09 million) and Malaysia (US$ 86.47 million), which together accounted for a significant share of total shipments.
Niger seeds exports remained relatively concentrated, with the USA emerging as the largest importer (US$ 5.81 million), followed by smaller volumes across select markets. Other oilseeds witnessed notable demand from the USA, Russia, Vietnam and the UAE, indicating diversified usage across regions. Sesame seeds exports continued to remain strong, with Vietnam (US$ 23.33 million), South Korea (US$ 35.85 million), Indonesia (US$ 17.14 million) and the USA (US$ 24.84 million) among the leading importers, highlighting sustained global demand across both Asian and developed markets.
During FY25, India exported groundnut to more than 85 countries. India’s major export destinations for groundnuts are Indonesia, Vietnam, Philippines, Malaysia, Thailand, UAE, Russia, Algeria, Bangladesh, Nepal, etc. In FY26, its top 5 importers were Indonesia, Vietnam, Malaysia, china and Philippines. with a share of about 24.90%, 8.63%, 7.10%, 3.77%, and 3.64% of total export, respectively.
The niger seeds are majorly exported from India to the USA. Other countries such as, Canada, UK, Algeria, Mexico, Indonesia, Iran, Russia, Japan, and Belgium are among India's top niger seeds destinations. The above-mentioned countries and the USA account for about 81.75% of India’s total exports.
India exports sesame seeds to more than 100 countries. Some of the top sesame-importing countries are South Korea, the USA, Russia, Vietnam, Israel, Saudi Arabia, Iraq, Indonesia, Canada and Greece.
Government Initiatives
India’s oilseed sector plays a significant role in agricultural exports, with exports of oil meals, oilseeds and minor oils reaching about 5.44 million tonnes valued at Rs. 29,587 crore (US$ 3.57 billion) in FY24, contributing to the country’s agri-export growth. The Government of India has undertaken several initiatives to strengthen the sector and enhance export potential, primarily through the National Mission on Edible Oils–Oil Palm (NMEO-OP) and the National Mission on Edible Oils–Oilseeds (NMEO-Oilseeds). These initiatives focus on increasing domestic production, improving productivity, expanding cultivation areas, and strengthening value chains to reduce import dependence and enhance export competitiveness. Additional policy support through higher Minimum Support Prices (MSP), promotion of high-yielding seed varieties, cluster-based development, and improved market linkages continues to support farmer incomes and sectoral growth.
In the Union Budget 2025-26, the Government of India has significantly increased its allocation towards developing the oilseed industry. A total of Rs. 11,040 crore (US$ 1.27 billion) has been allocated for the National Mission on Edible Oils – Oil Palm (NMEO-OP), out of which Rs. 8,844 crore (US$ 1.02 billion) is the share of the Government of India and Rs. 2,196 crore (US$ 252.76 million) is the state share.
Under NSFM – Oilseeds programme, the states and agencies are provided support for the purchase of breeder seeds, distribution of certified seeds, creation of seed hubs, plant protection equipment, sprinkler sets, seed storage bins, and seed treating drums etc.
Atmanirbhar Oil Seeds Abhiyan
National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds) with a financial outlay of Rs. 10,103 crore (US$ 1.16 billion) over seven years, aims to increase domestic oilseed production from 39 million tonnes in FY23 to 69.7 million tonnes by FY31.
In the Interim Budget 2024-25, Union Minister for Finance and Corporate Affairs, Ms. Nirmala Sitharaman outlined plans to devise a strategy aimed at attaining self-reliance (Atmanirbharta) in oilseeds like mustard, groundnut, sesame, soybean, and sunflower.
According to Union Agriculture Minister, Mr. Arjun Munda, government has launched a mission worth US$ 1.3 billion (Rs. 11,000 crore) aimed at reducing the dependency on imported edible oils and achieving self-sufficiency in oilseed production.
Directorate of Oilseeds Development (DOD)
The Directorate of Oilseeds Development (DOD) was formed in the year 1942 and is responsible for supervising the Oilseed Development Programmes and Oil Palm Development Programmes across the country and in the designated states of Andhra Pradesh, Kerala, Tamil Nadu, and Karnataka.
Government Body
Indian Oilseeds and Produce Export Promotion Council (IOPEPC)
The Indian Oilseeds and Produce Export Promotion Council (IOPEPC) is an apex export promotion body established in 1956 (earlier known as IOPEA) to promote and develop India’s exports of oilseeds, vegetable oils and related products. Recognised by the Ministry of Commerce, Government of India, the council acts as a key interface between exporters, government agencies and global buyers, supporting trade facilitation, market access and international promotion activities. It works to enhance the competitiveness of Indian oilseed products by providing market intelligence, organising trade events, ensuring quality standards and strengthening the domestic supply chain by engaging farmers, processors and exporters. Overall, IOPEPC plays a significant role in positioning India as a reliable global supplier of oilseeds and allied agricultural commodities.
RELATED SITES
IOPEPC, 78/79, Bajaj Bhavan,
Nariman Point,
Mumbai - 400021
Maharashtra
India
Tel.:+91-22-22023225
Fax:+91-22-22029236
Email: Email:info@iopepc.org
Website: http://www.iopepc.org
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