Current Affairs Topics Archive
International Relations Economics Polity & Governance Environment & Ecology Science & Technology Internal Security Geography Social Issues Art & Culture Modern History

India's edible oil output seen covering just 40% demand in 2025-26: IVPA

February 09, 2026 4 min read Economics Geography GS1 GS3
On This Page ▼

What Happened

  • The Indian Vegetable Oil Producers' Association (IVPA) estimated India's domestic edible oil production at 9.6 million tonnes in the 2025-26 marketing year (October-September), covering merely 40% of domestic requirements.
  • India will need to import approximately 16.7 million tonnes of edible oil to meet demand.
  • Import composition: 8-8.5 million tonnes of palm oil, 5-5.5 million tonnes of soybean oil, 2.8-3 million tonnes of sunflower oil, and ~200,000 tonnes of other oils (including zero-duty imports via Nepal).
  • IVPA noted that palm oil imports have declined from over 10 million tonnes in 2021-22 to approximately 8 million tonnes currently.
  • Key source countries include Argentina and Brazil (soybean oil) and Malaysia and Indonesia (palm oil).

Static Topic Bridges

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

The Union Cabinet approved NMEO-Oilseeds in 2024 as a seven-year mission (2024-25 to 2030-31) with a financial outlay of Rs 10,103 crore. It aims to boost domestic production of primary oilseed crops — rapeseed-mustard, groundnut, soybean, sunflower, and sesamum — as well as improve collection and extraction efficiency from secondary sources like cottonseed, rice bran, and tree-borne oils. The mission targets increasing primary oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31.

  • Approved: 2024 (seven-year mission: 2024-25 to 2030-31)
  • Outlay: Rs 10,103 crore
  • Target: primary oilseed production from 39 MT (2022-23) to 69.7 MT (2030-31)
  • Combined target (NMEO-Oilseeds + NMEO-OP): domestic edible oil production of 25.45 MT by 2030-31 (covering ~72% of projected demand)
  • Focus crops: rapeseed-mustard, groundnut, soybean, sunflower, sesamum
  • Secondary sources: cottonseed, rice bran, tree-borne oils

Connection to this news: The IVPA data showing 40% self-sufficiency underscores the urgency of NMEO-Oilseeds. Even if the mission achieves its 2030-31 target of 25.45 MT domestic production, India will still import 28% of its requirement — highlighting the structural depth of the edible oil deficit.

National Mission on Edible Oils — Oil Palm (NMEO-OP)

The Government of India launched NMEO-OP in 2021 with an outlay of Rs 11,040 crore to expand oil palm cultivation, particularly in northeastern states and Andaman & Nicobar Islands. Oil palm yields 4-5 tonnes of crude palm oil (CPO) per hectare — significantly higher than soybean (0.4 t/ha) or groundnut (0.5 t/ha). Coverage under oil palm has increased from 3.70 lakh hectares (2020-21) to 6.20 lakh hectares (November 2025), with CPO production rising from 1.91 lakh tonnes (2014-15) to 3.80 lakh tonnes (2024-25).

  • Launched: 2021
  • Outlay: Rs 11,040 crore
  • Oil palm area: 3.70 lakh hectares (2020-21) → 6.20 lakh hectares (November 2025)
  • CPO production: 1.91 lakh tonnes (2014-15) → 3.80 lakh tonnes (2024-25)
  • Oil palm yield advantage: 4-5 tonnes CPO/hectare vs soybean 0.4 t/ha
  • Focus regions: Andhra Pradesh, Telangana, northeastern states, Andaman & Nicobar

Connection to this news: Palm oil accounts for 8-8.5 million tonnes of India's 16.7 million tonne import bill. While NMEO-OP has doubled oil palm acreage, the gestation period of 4-5 years before oil palms reach full yield means the import reduction impact will be gradual.

India's Oilseed Geography and Cropping Patterns

India's oilseed production is concentrated in specific agro-climatic zones: groundnut in Gujarat and Rajasthan; soybean in Madhya Pradesh and Maharashtra; rapeseed-mustard in Rajasthan, Madhya Pradesh, and Uttar Pradesh; sunflower in Karnataka and Andhra Pradesh. The oilseed economy is heavily influenced by MSP policy — oilseed MSPs have been increased significantly to incentivise farmers. The Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) provides price support through both MSP procurement and price deficiency payments.

  • Major oilseed producing states: Madhya Pradesh, Rajasthan, Maharashtra, Gujarat, Karnataka
  • India's share of global oilseed production: ~10%
  • Rapeseed-mustard: largest domestically produced edible oil
  • PM-AASHA: provides MSP-based procurement and deficiency payment for oilseeds
  • Import duty on edible oils: currently 20% (reimposed to protect domestic farmers)

Connection to this news: The structural production shortfall — 9.6 MT against ~26 MT demand — reflects both India's limited arable land for oilseeds and competition with other food crops. Geographic expansion through oil palm (NMEO-OP) and yield improvement through better varieties (NMEO-Oilseeds) are the twin policy responses.

Key Facts & Data

  • India's edible oil production (2025-26): 9.6 million tonnes (~40% of demand)
  • Edible oil imports (2025-26): approximately 16.7 million tonnes
  • Import composition: palm oil (8-8.5 MT), soybean oil (5-5.5 MT), sunflower oil (2.8-3 MT)
  • Palm oil sources: Malaysia and Indonesia; soybean oil: Argentina and Brazil
  • NMEO-Oilseeds outlay: Rs 10,103 crore (2024-25 to 2030-31)
  • NMEO-OP outlay: Rs 11,040 crore (launched 2021)
  • Oil palm acreage: 6.20 lakh hectares (November 2025)
  • Import duty on edible oils: 20%