Oilseed output rises to 43.06 million tonnes in 2025-26 as government expands seed distribution, processing infrastructure and oil palm cultivation

Key Highlights

• National Mission on Edible Oils–Oilseeds targets 69.7 million tonnes of primary oilseed production by 2030–31.
• Oilseed production rose from 39.67 million tonnes in 2023–24 to 43.06 million tonnes in 2025–26.
• More than 600 Value Chain Clusters are being developed across the country.
• Free seeds covered 13.52 lakh hectares during 2025–26, exceeding the annual target of 10 lakh hectares.
• India imported 160.72 lakh tonnes of edible oils in 2024–25, including 75.17 lakh tonnes of palm oil.
• Oil palm cultivation expanded to 6.40 lakh hectares by March 2026.
• India produced 20.10 lakh tonnes of crude palm oil from 2021–22 to 2025–26.

India is stepping up efforts to reduce its dependence on imported edible oils, with the government targeting a substantial increase in domestic oilseed production and expanding oil palm cultivation across the country.

Under the National Mission on Edible Oils–Oilseeds (NMEO-OS), approved in October 2024, the government aims to increase primary oilseed production from 39 million tonnes in 2022–23 to 69.7 million tonnes by 2030–31.

The initiative comes as India continues to rely significantly on imports to meet its edible-oil demand.

The information was provided by Minister of State for Agriculture and Farmers Welfare Ramnath Thakur in a written reply in the Lok Sabha.

Oilseed production reaches 43.06 million tonnes

India’s oilseed production has increased from 39.67 million tonnes in 2023–24 to 43.06 million tonnes in 2025–26, according to the third advance estimates of the Department of Agriculture and Farmers Welfare.

The NMEO-OS is being implemented through a cluster-based value-chain approach, with more than 600 Value Chain Clusters identified across the country.

These clusters are managed by Farmer Producer Organisations (FPOs), cooperatives and other Value Chain Partners.

Farmers receive access to high-quality seeds of newer high-yielding varieties, along with training on improved agricultural practices.

Free seed distribution exceeds annual target

During 2025–26, free seed distribution under the mission covered 13.52 lakh hectares, exceeding the annual target of 10 lakh hectares.

The government is also strengthening the seed ecosystem through:

• 100% support for the purchase of breeder seeds;
• new seed hubs;
• specialised seed-storage facilities;
• Frontline Demonstrations;
• Cluster Frontline Demonstrations; and
• Block-Level Demonstrations.

A total of 60 Seed Hubs and 50 specialised seed-storage units have been sanctioned for production and storage of breeder seeds of recently released varieties.

The mission is also supporting post-harvest infrastructure, including the establishment and upgrading of oil mills, with the objective of improving oil recovery from primary and secondary sources.

India remains heavily dependent on edible-oil imports

Despite rising domestic production, imports remain an important part of India’s edible-oil supply.

According to the Directorate of Sugar & Vegetable Oils under the Department of Food and Public Distribution, India imported 160.72 lakh tonnes of edible oils during 2024–25.

Of this, 75.17 lakh tonnes were palm oil, accounting for 46.77% of total edible-oil imports.

The figures underline the importance of the government’s efforts to expand domestic oilseed production and develop alternative domestic sources of edible oils.

Oil palm cultivation expands across 15 States

Alongside the oilseed mission, the government launched the National Mission on Edible Oils–Oil Palm (NMEO-OP) in August 2021.

The mission is being implemented across 15 States, with a particular focus on the North-Eastern region.

It provides support to farmers for high-quality planting material, intercropping inputs and maintenance during the four-year gestation period of oil palm.

Assistance is also available for replanting old and unproductive plantations, farm machinery, irrigation, seed gardens, nurseries and Custom Hiring Centres.

The North-Eastern States receive additional financial assistance for establishing oil palm processing mills.

Oil palm area reaches 6.40 lakh hectares

Between 2021–22 and 2025–26, around 2.73 lakh hectares were brought under oil palm cultivation.

This took India’s cumulative oil palm area to 6.40 lakh hectares as of March 31, 2026.

During the same period, farmers harvested 114.66 lakh tonnes of Fresh Fruit Bunches (FFBs), resulting in production of 20.10 lakh tonnes of crude palm oil (CPO).

India currently has 27 operational oil palm processing mills.

The government is also providing Viability Gap Payment (VGP) to support oil palm growers. So far, ₹18.90 crore has been disbursed to 9,244 oil palm farmers across Goa, Tamil Nadu, Gujarat, Karnataka, Odisha, Arunachal Pradesh, Assam and Mizoram.

What it means for hotels, restaurants and food businesses

The edible-oil supply chain has a direct connection with the hospitality and foodservice industry.

Edible oils are a high-volume input for commercial kitchens, restaurants, hotels, caterers, bakeries, snack manufacturers and food-processing businesses. Any sustained improvement in domestic production could therefore have implications for the long-term resilience of food supply chains.

Greater domestic availability could potentially:

• reduce exposure to international edible-oil price fluctuations;
• strengthen domestic sourcing options for food businesses;
• improve resilience in restaurant and hotel procurement;
• support Indian oilseed value chains and processors; and
• create opportunities for food businesses to highlight locally sourced ingredients.

However, increased domestic production does not automatically translate into lower prices for hotels or restaurants. International commodity prices, import requirements, domestic demand, processing costs and logistics will continue to influence edible-oil prices.

Implications for food and tourism

For the broader food and tourism ecosystem, a stronger domestic edible-oil sector could support India’s regional food economy.

Different regions have distinct cooking oils, oilseed crops and culinary traditions. Expanding domestic oilseed production could complement efforts to promote regional cuisines, local sourcing and farm-to-table food experiences.

Oil palm development in the North-East could also contribute to the region’s agricultural value chains, although its impact on tourism will depend on how effectively agricultural production, processing and local food businesses develop alongside one another.

Building a more self-reliant edible-oil supply chain

The government’s twin strategy—expanding traditional oilseed production through NMEO-OS and increasing oil palm cultivation through NMEO-OP—is aimed at addressing one of India’s major agricultural import dependencies.

With oilseed production already reaching 43.06 million tonnes in 2025–26, the next challenge will be scaling productivity, processing capacity and farmer participation to move towards the 69.7-million-tonne target by 2030–31.

For India’s food and hospitality sector, the outcome could be a more diversified and resilient domestic supply chain for one of the most essential ingredients used across commercial kitchens and food manufacturing.