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

Syllabus: GS3/ Economy

Context

• The Union Cabinet approved the National Mission on Edible Oils-Oilseeds (NMEO-Oilseeds) to increase domestic oilseed production and achieve self-sufficiency in edible oils. 

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

• The initiative will span from 2024-25 to 2030-31 and will focus on enhancing the production of key primary oilseed crops such as Rapeseed-Mustard, Groundnut, Soybean, Sunflower, and Sesamum.
  • It will also focus on increasing collection and extraction efficiency from secondary sources like Cottonseed, Rice Bran, and Tree Borne Oils. 
• Aim: To increase primary oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31, meeting around 72% of our projected domestic requirement. 
• Implementation: By promoting adoption of high-yielding high oil content seed varieties, extending cultivation into rice fallow areas, and promoting intercropping.
  • The Mission will harness ongoing development of high-quality seeds by using cutting-edge global technologies such as genome editing.
  • 65 new seed hubs and 50 seed storage units will be set up in public sector to improve the seed production infrastructure.
  • Support will be extended to FPOs, cooperatives, and industry players to establish or upgrade post-harvest units, enhancing recovery from sources such as cottonseed, rice bran, corn oil, and Tree-Borne Oils (TBOs).
• Value Chain Clusters: Over 600 Value Chain Clusters will be developed across 347 unique districts, covering more than 10 lakh hectares annually.
  • These clusters will be managed by value chain partners such as FPOs, cooperatives, and public or private entities. 
  • 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.
• Crop Diversification: The Mission also seeks to expand oilseed cultivation by an additional 40 lakh hectares by targeting rice and potato fallow lands, promoting intercropping, and promoting crop diversification.
• Dietary Awareness: The Mission will promote awareness of recommended dietary guidelines for edible oils through an Information, Education, and Communication (IEC) campaign.

Oil Seed Production in India

• India is the fourth largest oilseeds producer in the world, behind the USA, China, and Brazil.
  • It has 20.8% of the total area under cultivation globally, accounting for 10% of global production. 
• The largest oilseed-producing states in India include Rajasthan, Madhya Pradesh, Gujarat, Maharashtra, Haryana, Uttar Pradesh, West Bengal, Karnataka, Tamil Nadu, and Telangana.
• Demand: Over the past decades, per capita consumption of edible oil in the country has seen rise.
  • This surge in demand has significantly outpaced domestic production, leading to a heavy reliance on imports to meet both domestic and industrial needs. 
• Import: In 2022-23, India imported 16.5 million tonnes (MT) of edible oils, with domestic production fulfilling only 40-45% of the country’s requirements.
  • This situation presents a substantial challenge to the country’s goal of achieving self-sufficiency in edible oils.

Way Ahead

• To address this dependency and promote self-sufficiency, the Government of India has undertaken a series of measures to enhance domestic production of edible oils, including the launch of National Mission on Edible Oils – Oil Palm (NMEO-OP).
• In addition, the Minimum Support Price (MSP) for mandated edible oilseeds has been significantly increased to ensure remunerative prices to the oilseed farmers. 
• The continuation of the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) ensures that oilseed farmers receive MSP through price support scheme and price deficiency payment scheme. 
• 20% import duty on edible oils has been imposed to protect domestic producers from cheap imports and encourage local cultivation.

Source: PIB