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.
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 has 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. During FY24, the total oilseeds production in the country was recorded at 396.69 lakh tonnes The production of oilseeds during FY24 was higher by 20.38 lakh tonnes than the average oilseeds production of 376.30 lakh tonnes over the past five years. From the year FY16 to FY24, the Compound Annual Growth Rate (CAGR) of oilseed production was 5.8%. This was achieved due to the implementation of various programs like special programmes on mustard & rapeseed during Rabi and cluster demonstrations of improved technology by the Government of India.
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 during FY24 with a share of about 23%, 21%, 18% and 14% of the total production, respectively.
Export Trends
India is one of the largest oilseed product exporters. The country exports soybeans, mustard seeds, groundnuts, sesame seeds, niger seeds, cotton seeds, castor seeds and sunflower & safflower seeds. In FY25 (April-December), India exported mustard seeds worth US$ 15.01 million. The total quantity exported during the same period was about 17,780.62 thousand units. India is among the top exporter of mustard oilseeds, meals, and flour and in 2022, it was the third-largest mustard seed exporting country. In FY23 India exported Rs. 10,900 crore (US$ 1.33 billion) worth of Oilseeds. In FY24, the oilseed exports rose by over 7.52% to Rs. 9,787 crore (US$ 1.43 billion). During FY25 (April-January), the oilseed exports amounted to US$ 1.13 billion.
India’s groundnut exports during FY25 (April-December) stood at US$ 597 million. The quantity exported during the same period was 668,885.40 MT. India’s groundnut exports are majorly sourced from Gujarat and Rajasthan. The government has taken several steps to boost exports from West Bengal. During FY24, the exports of sesame seeds from India were US$ 525 million and in FY25 (April-December) it stood at US$ 370 million. The export of Niger seeds during FY25 (April-December) stood at US$ 4 million.
Export Market
India’s oilseeds are exported to many parts of the world. India exports oilseeds to Indonesia, Vietnam, Philippines, Malaysia, Russia, the USA, Thailand, UAE, Korea, Iraq, Algeria, etc.
During FY25 (April-December), India exported groundnut to more than 80 countries. India’s major export destinations for groundnuts are Indonesia, Vietnam, Philippines, Malaysia, Thailand, UAE, Russia, Algeria, Bangladesh, Nepal, etc. In FY25 (April-December), its top 5 importers were Indonesia, Vietnam, Philippines, Malaysia and Thailand with a share of about 34.84%, 15.74%, 9.21%, 6.87%, and 6.20% 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 97% of India’s total exports.
India exports sesame seeds to more than 125 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
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.
During the last couple of years FY20 and FY21, the Government of India undertook several initiatives like Targeted Rice Fallow Area (TRFA) oilseeds, National Food Security Mission (NFSM) oilseeds, cluster demonstrations of improved technology, Mustard programme during Rabi, and Special programme on rapeseed; to increase the oilseed production. The above initiatives resulted in the highest oilseed production in the country during these years.
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) 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 IOPEPC are the development of oilseed and produce, the procedure for export, the promotion of mulching and addressing pesticide-related issues. The functions of IOPEPC are concentrated towards the productivity and export of oilseeds and vegetable oils.
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
Partners
