INTRODUCTION
India is the 4th largest oilseeds producer in the world. It has 20.8% of the total area under cultivation globally, accounting for 10% of global production. The country produces groundnut, soybean, sunflower, sesamum, niger seed, mustard and safflower oilseeds.
Nearly 72% of the oilseeds area is restricted to rainfed farming done by small farmers which led to poor productivity. However, a breakthrough was realized in oilseed production through introducing latest crop production technologies. Consequently, the oilseed production grew to 365.65 tonnes in 2020-21 from 108.3 lakh tonnes in 1985-86.
The production of oilseeds in India has been growing for the last five years. In 2020-21, the production of the country was 365.65 lakh tonne which was a 10% increase from that of the previous year. From the years 2015-16 to 2020-21, the compound annual growth rate (CAGR) of production was 7.7%. This was achieved due to implementation of various programs like special programmes on mustard & rapeseed during Rabi and cluster demonstrations of improved technology by the Government of India.
The largest oilseed-producing states in India include Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh, West Bengal. Out of these states, Rajasthan, Gujarat, Madhya Pradesh and Maharashtra are the top producers with a share of about 20%, 20%, 19% and 16% of the total production, respectively.
EXPORT TRENDS
India is one of the largest oilseed product exporters. The country exports soybeans, mustard seeds, groundnuts, sesame seeds, niger seeds, cotton seeds, castor seeds and sunflower & safflower seeds. In 2019, India exported mustard seeds worth US$ 19 million. The total quantity exported during the same period was about 31.5 million kg. India is among the top exporter of mustard oilseeds, meals and flour and in 2019, it was the fourth largest mustard seed exporting country. In FY 2021-22 India exported Rs. 8,310 crore (US$ 1,003.99 million) worth of Oilseeds. In September 2022, India exported US$ 59.11 million worth of Oilseeds, an increase of 17.47% YoY.
India’s groundnut exports during FY23 (April-August 2022) stood at US$ 223.52 million. The quantity exported during the same period was 177,938.21 MT. India’s groundnut exports are majorly sourced from Gujarat and Rajasthan. The government has taken several steps to boost the exports from West Bengal. During 2019-20, the exports of sesame seeds from India was US$ 526 million. The export of niger seeds during 2019-20 was US$ 15 million which increased to US$ 22 million in 2020-21.
EXPORT MARKET
India’s oilseeds are exported to many parts of the world. India exports oilseeds to USA, UAE, Netherlands, China, Singapore, Australia, Belgium, Germany, Indonesia, Hong Kong, Nepal, Saudi Arabia and Italy.
During 2021-22, India exported groundnut to more than 80 countries. India’s major export destinations for groundnuts are Indonesia, Vietnam, Philippines, Malaysia, Thailand, Bangladesh, Nepal, Singapore, Iran, etc. In FY23 (April-August 2022), its top 5 importers were Indonesia, Vietnam, Philippines, Malaysia and Thailand with total quantity imports of 74,506.54 MT, 30,209.76 MT, 19,600.50 MT, 19,088.59 MT 12,236.00 MT, respectively. In FY23 (April-August 2022), India exported US$ 93.52 million groundnuts to Indonesia.
The niger seeds exports from India are majorly to USA. Other countries such as the UK, Belgium, Canada, Netherlands, Spain, Mexico, Algeria, Brazil and Italy are among India's top niger seeds destinations. The above mentioned countries and USA account for about 98% of India’s total exports.
India exports sesame seeds to more than 125 countries. Some of the top sesame importing countries are Vietnam, South Korea, USA, Netherlands, Iran, Taiwan, Russia, Greece, Germany and Indonesia.
GOVERNMENT INITIATIVES
In the Budget 2022-23, the Government of India allocated a total of Rs. 1,500 crore (US$ 197 million) towards developing the oilseed industry. Out of this, Rs. 900 crore (US$ 118 million) have been allocated towards the edible oil palm programme and the rest Rs. 600 crore (US$ 79 million) have been allocated to the oilseed programme.
During the last couple of years 2019-20 and 2020-21, the Government of India undertook several initiatives like Targeted Rice Fallow Area (TRFA) oilseeds, National Food Security Mission (NFSM) oilseeds, cluster demonstrations of improved technology, Mustard programme during Rabi, and Special programme on rapeseed; to increase the oilseed production. The above initiatives resulted in highest oilseed production in the country during these years.
Under NSFM – Oilseeds programme, the states and agencies are provided support for purchase of breeder seeds, distribution of certified seeds, creation of seed hubs, plant protection equipment, sprinkler sets, seed storage bins, and seed treating drums etc.
Directorate of Oilseeds Development (DOD)
The Directorate of Oilseeds Development (DOD) was formed in the year 1942 and is responsible for supervising the Oilseed Development Programmes and Oil Palm Development Programmes across the country and in the designated states of Andhra Pradesh, Kerala, Tamil Nadu, and Karnataka.
GOVERNMENT BODY
Indian Oilseeds and Produce Export Promotion Council (IOPEPC)
The Indian Oilseeds and Produce Export Promotion Council (IOPEPC) was formed in 1956. Its primary aim is to promote and protect India’s export trade in commodities like oilseeds, vegetable oil and oilcake. Besides exports, the council also focuses on strengthening the domestic supply chain by encouraging farmers, sellers, processors, surveyors and exporters to enhance the quality of oilseeds in India.
The functions of IOEPC are the development of oilseed and produce, the procedure for export, promotion of mulching and addressing pesticide-related issues.
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Source: India Brand Equity Foundation
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