NMEO-Oilseeds : Cabinet Approves National Mission on Edible Oils

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds), a landmark initiative aimed at boosting domestic oilseed production and achieving self-reliance (Atmanirbhar Bharat) in edible oils. The Mission will be implemented over a seven-year period, from 2024-25 to 2030-31, with a financial outlay of Rs 10,103 crore.

The newly approved NMEO-Oilseeds will focus on enhancing the production of key primary oilseed crops such as Rapeseed-Mustard, Groundnut, Soybean, Sunflower, and Sesamum, as well as increasing collection and extraction efficiency from secondary sources like Cottonseed, Rice Bran, and Tree Borne Oils. The mission aims to increase primary oilseed production from 39 million tonnes (2022-23) to 69.7 million tonnes by 2030-31. Together with NMEO-OP (Oil Palm), the Mission targets to increase domestic edible oil production to 25.45 million tonnes by 2030-31 meeting around 72% of our projected domestic requirement. This will be achieved 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.

To ensure the timely availability of quality seeds, the Mission will introduce an Online 5-year rolling seed plan through the ‘Seed Authentication, Traceability & Holistic Inventory (SATHI)’ Portal, enabling states to establish advance tie-ups with seed-producing agencies, including cooperatives, Farmer Producer Organizations (FPOs), and government or private seed corporations. 65 new seed hubs and 50 seed storage units will be set up in public sector to improve the seed production infrastructure.

Additionally, 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.

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.

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).

Furthermore, the Mission will promote awareness of recommended dietary guidelines for edible oils through an Information, Education, and Communication (IEC) campaign.

The Mission aims to significantly enhance domestic oilseed production, advancing the goal of Atmanirbharta (self-reliance) in edible oils, thereby reducing import dependency and conserving valuable foreign exchange while boosting farmers’ incomes. This mission will also accrue significant environmental benefits in the form of low water usage and improved soil health and making productive use of crop fallow areas.

Background:

The country is heavily reliant on imports which account for 57% of its domestic demand for edible oils. 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) with an outlay of Rs 11,040 crore to boost oil palm cultivation in the country in 2021.

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. Besides,  20% import duty on edible oils has been imposed to protect domestic producers from cheap imports and encourage local cultivation.

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