India stands at a critical juncture in its agricultural evolution as more than half of the edible oil consumed is imported, with imports accounting for approximately 57 per cent of total domestic consumption. Similarly, India’s pulses imports in fiscal 2024 surged to 84 per cent (year-on-year) to their highest level in six years with imports accounting for around 16.2 per cent of total domestic consumption. This undeniable reality highlights a persistent paradox—despite being one of the world’s largest producers of oilseeds and pulses, India's domestic output falls short of demand, making external procurement a necessity.
Agriculture has long been the backbone of India’s economy, employing 46.1 per cent of the workforce and feeding a population of 1.45 billion. Yet, its contribution to GDP lags at just 16 per cent, often overshadowed by manufacturing and services. However, recent policy shifts signal a renewed focus on agriculture as a primary growth driver. The Economic Survey 2024-25 and Union Budget 2025-26 reinforce this narrative, with agricultural allocations modestly rising to ₹1,71,437 crores. For decades, self-sufficiency was synonymous with food grain production, with wheat and rice surpluses making India a net food exporter. However, as consumption patterns evolve, the definition of self-sufficiency must expand to include oilseeds and pulses, which are critical for food security and price stability.
While food grain production has surged 1.54 times over the past two decades (2001-02 to 2023-24) (Fig. 1), oilseed production has struggled, growing at a modest CAGR of 1.9 per cent (2011-12 to 2021-22) (Fig. 2). In 2021-22, India produced 37.96 million tonnes of oilseeds, yet domestic edible oil availability stood at just 11.57 million tonnes, covering less than 50 per cent of demand. This shortfall led to imports of 14.19 million tonnes of edible oils (Table 1), pushing India's edible oil import bill, driven by crude palm oil, soybean oil, and sunflower oil. Similarly, despite a commendable rise in pulses production from 163.23 lakh tonnes in 2015-16 to 244.93 lakh tonnes in 2023-24 (Table 1), imports remain substantial. In 2023-24, India imported 47.38 lakh tonnes of pulses despite exporting 7.62 lakh tonnes—highlighting persistent structural inefficiencies (Table 2).
Recognizing these challenges, the government has implemented a series of targeted interventions. To protect domestic farmers, import duties on crude edible oils (soybean, palm, sunflower) were raised from nil to 20 per cent in September 2024, making the effective duty 27.5 per cent. Similarly, refined edible oil duties were raised from 12.5 per cent to 32.5 per cent, resulting in an effective duty of 35.75 per cent. These measures are designed to encourage local production while preventing excessive price volatility. However, with domestic demand growing annually, import restrictions alone cannot bridge the self-sufficiency gap.
To strengthen domestic capacity, the National Mission on Edible Oils–Oil Palm (NMEO-OP) was launched in 2021 with an outlay of ₹11,040 crore. The government aim to increase domestic edible oil production to 25.45 million tonnes, covering 72 per cent of India’s projected demand by 2030-31. Alongside NMEO-OP, the Union Cabinet also approved the National Mission on Edible Oils–Oilseeds (NMEO-Oilseeds) last year. This is a seven-year initiative (2024-25 to 2030-31) with an outlay of ₹10,103 crore. The mission aims to increase oilseed production from 39 million tonnes in 2022-23 to 69.7 million tonnes by 2030-31. The policy emphasizes expanding oilseed cultivation by 40 lakh hectares through better utilization of rice and potato fallow lands, promoting intercropping, and encouraging high-oil-content seed varieties. The mission focuses on rapeseed-mustard, groundnut, soybean, sunflower, and sesame, alongside improving extraction from secondary sources - cottonseed, rice bran, and tree-borne oils (TBOs).
Pulses, beyond their economic and trade value, are a nutritional powerhouse. According to the National Institute of Nutrition, pulses contribute 20-25 per cent of total protein intake in Indian diets. However, per capita pulses consumption remains below the recommended 85 grams per day, contributing to protein-energy malnutrition across the country. Increasing domestic production is, therefore, not just an economic necessity but a critical public health priority. Recognizing this, the government has placed a strong emphasis on boosting pulses production. The ₹1,000 crore Aatmanirbharta in Pulses Mission, announced in the Union Budget 2025-26, aims to enhance the cultivation of key pulses such as Tur, Urad, and Masoor, ensuring both nutritional security and self-sufficiency in the sector. Procurement commitments by the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) and the National Cooperative Consumers’ Federation of India Ltd. (NCCF) for the next four years will ensure price stability and incentivize higher production. The National Mission on High-Yielding Seeds which promotes 100+ climate-resilient, pest-resistant seed varieties to enhance yields and reduce vulnerabilities to climate change was also launched.
However, achieving self-sufficiency requires more than increased production. Strengthening infrastructure and market linkages is also vital to maximizing farmer benefits. The introduction of PM Dhan-Dhaanya Krishi Yojana, targeting 100 underdeveloped agricultural districts, aims to enhance storage, processing, and market access for 1.7 crore farmers. Investments in post-harvest infrastructure and rural logistics will ensure that farmers capture more value rather than losing it to inefficiencies in the supply chain.
India’s ambition of becoming a US$5 trillion economy cannot be realized without a robust and resilient agricultural sector. While policy frameworks like NMEO-Oilseeds and the Aatmanirbharta in Pulses Mission lay the groundwork, their success will hinge on effective implementation, farmer participation, and private-sector collaboration. Addressing inefficiencies in value chains, ensuring fair price realization for farmers, and improving post-harvest infrastructure will be critical. Without a sustained focus on these aspects, India risks continued reliance on global markets for its essential food commodities. The coming years will determine whether these ambitious policies translate into a structurally sound, competitive, and truly self-reliant agricultural economy.
*Om Stutee is a Research Assistant at RIS. Views expressed are personal. Usual disclaimer applies.
Author can be reached out at om.stutee@ris.org.in
References:
- Ministry of Finance, Government of India. (2025). Union Budget 2025-26: Budget Speech, Expenditure Budget and Key Highlights.
- Ministry of Finance, Government of India. (2024). Economic Survey 2024-25.
- Department of Food & Public Distribution (DFPD). (2024). Import & Export. Ministry of Consumer Affairs, Food & Public Distribution, Government of India.
- Press Information Bureau. (2024a, July 30). Production and import of pulses. Government of India.
- Press Information Bureau. (2024b, October 3). Cabinet approves National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds) for 2024-25 to 2030-31. Government of India.