- Prime Minister Modi urged Indians to reduce vegetable oil consumption amid import concerns
- India imports around 16 million tonnes of edible oil, spending $18.3 billion annually
- Farmers avoid oilseeds due to risks, low support, and preference for rice and wheat
Prime Minister Narendra Modi's "austerity" speech caught national attention for several reasons -- his appeal to save fuel, avoid buying gold for at least a year, work remotely, and more. While this surprised the public (and markets), many were particularly struck by his request to reduce the use of vegetable oil.
Used daily in Indian kitchens, vegetable oil is (or feels like) a staple. But many Indians do not realise that most of the edible oil
sold at kirana stores -- even in the remotest corners of the country -- is imported. This realisation has raised a crucial question: why is India, an agriculture-dominated economy, unable to produce enough edible oil for its own people?
In fact, India is now one of the world's largest importers of edible oils. Reports suggest the country spends about Rs 1.61 lakh crore every year -- nearly $18.3 billion -- to import around 16 million tonnes of edible oil. This single item drains massive foreign exchange. The contrast is stark: India has vast arable land and millions of farmers, yet oilseed crops occupy a small share of farmland compared to rice and wheat.
Dr Himanshu Pathak, Director General of the International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) and former Director General of the Indian Council of Agricultural Research (ICAR), says this paradox is rooted in both science and policy.
Dr Himanshu Pathak, Director General of the International Crops Research Institute for the Semi-Arid Tropics
According to him, India imports 15-16 million tonnes of edible oil annually because farmers see oilseeds as risky crops. Erratic rainfall, pests, diseases, and unstable prices make oilseeds less attractive than rice and wheat.
Why Farmers Avoid Oilseeds
"Rice and wheat are very stable crops," Dr Pathak says. "They are backed by assured procurement and strong policy support. Oilseeds do not enjoy the same confidence among farmers." He, however, adds that India must aim to be "Atmanirbhar" in oilseeds.
Another challenge is geography. Pulses and oilseeds are often pushed to marginal lands with poor soil fertility, limited irrigation, and low inputs. The result is low productivity. As Dr Pathak puts it: grow a crop on marginal land and you will get marginal yield.
This has shaped farmer behaviour. In Punjab and Haryana, rice-wheat rotation continues because procurement and price assurance support these crops. Even if oilseeds offer better value per litre of oil, the risks outweigh the rewards.
"From an economic point of view, if you calculate the real cost of rice production, including water and electricity, oilseeds are more profitable," Dr Pathak says. "But policy support, insurance, free electricity, and procurement still favour rice and wheat."
Science & Policy Can Correct Course
Dr Pathak says oilseed research has caught up after years of neglect. New varieties that tolerate pests, diseases, and climate stress are available. "Earlier, one disease outbreak could wipe out the entire oilseed crop. Now we have varieties that can tolerate multiple stresses and give sustainable yields," he says.
Seed quality is another key factor. Good seeds alone can raise yields by 15-20 per cent. Ensuring that high-quality seeds reach farmers without dilution is critical if oilseeds are to become dependable.
Recognising the strategic importance of edible oils, the government has launched the National Mission on Edible Oilseeds. The mission aims to bridge the gap between domestic production and consumption by improving seed systems, expanding oilseed cultivation to fallow lands, promoting intercropping, and raising productivity through technology.
In the sunflower fields of ICRISAT, the promise of becoming self-reliant in oilseeds becomes visible.
The mission also attempts to correct past policy imbalances. Higher MSPs, better procurement, and insurance coverage aim to restore farmer confidence. Dr Pathak believes the goal is achievable with policy consistency. "We have fixed a clear target under the oilseed mission. With the research and policy framework now in place, I am confident India can become self-sufficient in edible oils." He adds that ICRISAT is working to boost oilseed production and help the country become self-reliant.
Notably, the National Mission on Edible Oilseeds will run from 2024-25 to 2030-31 with an outlay of Rs 10,103 crore. It targets key oilseed crops such as rapeseed-mustard, groundnut, soybean, sunflower, and sesamum, along with better extraction from secondary sources like cottonseed, rice bran, and tree-borne oils. The aim is to raise primary oilseed production from 39 million tonnes in 2022-23 to 69.7 million tonnes by 2030-31.
Cutting edible oil imports would save foreign exchange, boost farmer incomes, and reduce vulnerability to global price shocks. As India debates food, energy, and climate security, edible oil remains an overlooked vulnerability -- one that Indian farmers can potentially fix.
