Recently, a NITI Aayog Member Ramesh Chand stated that Genetically Modified (GM) crops are essential to reduce India’s dependence on edible oil imports.

What are edible oils?

• Edible oil is a liquid fat, derived from either plant or animal sources, that is suitable for human consumption and is used in cooking and food preparation.

India’s Rising Import Dependency

• Import dependence declined from 63.2% (2015-16) to 54.9% (2021-22) but surged back to 57% in 2022-23 due to rising demand.
• Total imports skyrocketed from 1.47 MT (1986-87) to 16.5 MT (2022-23).
• Breakdown of imports (2022-23):
  • Palm oil (59%) – Mainly from Indonesia & Malaysia.
  • Soybean oil (23%) – Mainly from Argentina, Brazil.
  • Sunflower oil (16%) – Mainly from Ukraine, Russia.

Global Trends in Edible Vegetable Oils

• The global edible oil market is expanding, with production expected to grow by 2% in 2024-25, reaching 228 million tonnes (MT).
• Palm oil (75.5 MT), soybean oil (58.9 MT), rapeseed oil (25.1 MT), and sunflower oil (19.1 MT) dominate production.
• Palm oil remains the most consumed due to its high yield (14.6 t/ha), followed by soybean oil, which benefits from its dual use in food and biodiesel.
• Soybean leads in oilseed cultivation, covering 127.2 million hectares (Mha) globally, contributing 60% of total oilseed output (353 MT).
• 41% of global vegetable oil production is traded, making it one of the most heavily traded agricultural commodities.
• Palm oil dominates exports – Indonesia & Malaysia account for ~60% of global palm oil exports, shipping over 70% of their production.
• India is the world’s largest edible oil importer, followed by China and the USA.

India’s Position in the Global Edible Oil Market

• India is the 4th largest vegetable oil economy (after the USA, China, and Brazil), contributing:
  • 15-20% of global oilseed cultivation area.
  • 6-7% of vegetable oil production.
  • 9-10% of global consumption.
• World leader in rice bran oil (46.8% global share) and castor seed (88.48%).
• 2nd largest in cottonseed oil (28.41%), groundnut seeds (18.69%), and groundnut oil (16.34%).
• 3rd largest in coconut oil (14.2%), sesame seed oil (8.73%), and rapeseed production (13.72%).
• 5th largest in soybean and soybean oil (3.72% and 2.14% share) (behind Brazil, USA, Argentina and China).

Key Oilseed Crops and Their Contribution

• Area under cultivation (2022-23):
  • Soybean (11.74 Mha, 34% of production) – Dominates oilseed cultivation.
  • Rapeseed-mustard (7.08 Mha, 31% of production) – Key for mustard oil.
  • Groundnut (5.12 Mha, 27% of production) – Major source of edible oil.
  • Others (sesame, castor, sunflower, etc.) – Occupy smaller areas but have niche markets.
• Domestic edible oil production share:
  • Mustard oil (45%) – Largest contributor.
  • Groundnut oil (25%) & soybean oil (25%) – Major players.
  • Minor oils (sunflower, sesame, safflower, nigerseed) – 5%.

Regional Dominance in Oilseed Production

• Top oilseed-producing states:
  • Rajasthan (21.42%) & Madhya Pradesh (21.42%) – Lead in mustard and soybean.
  • Gujarat (17.24%) – Major groundnut producer.
  • Maharashtra (15.83%) – Key for soybean and cottonseed oil.
• State-wise specialization:
  • Palm Oil: Andhra Pradesh (87.3%), Telangana (9.8%), Kerala, Karnataka.
  • Coconut: Kerala, Tamil Nadu, Karnataka (84% of total).

Yield Variations Across States

• National average yield: 1.27 t/ha (low compared to global standards).
• High-yielding states: Tamil Nadu (2.5 t/ha), Gujarat (1.91 t/ha), Haryana (1.94 t/ha), Telangana (1.80 t/ha).
• Low-yielding states: Madhya Pradesh (0.99 t/ha), Maharashtra (1.18 t/ha), Karnataka (0.94 t/ha).

Reasons for High Import Dependency

• Surge in Per Capita Consumption: Per capita edible oil consumption in India rose sharply to 19.7 kg/year (2022–23), significantly outpacing domestic production.
  • As per NITI Aayog, the rapid increase in demand — driven by rising incomes, urbanization, and lifestyle changes — is a major reason for the widening demand-supply gap​.
• Stagnant Yield Levels: Yield of key oilseeds like soybean has remained stagnant since the 1970s.
  • Despite having the largest soybean-growing area, India has failed to improve productivity, limiting domestic supply growth​.
• Predominance of Rainfed Cultivation: 76% of India’s oilseed cultivation occurs in rainfed areas, which are highly vulnerable to climatic stress.
  • Rain-dependency affects both stability and yield, contributing to inconsistent supply and limiting scope for meeting growing demand​.
• Low Seed Replacement Rate (SRR): The SRR for oilseeds is significantly below the target of 80–85%, with crops like groundnut having only 25%.
  • Low SRR hinders productivity gains, as the lack of high-quality seeds directly affects yield potential across major oilseed crops​.
• Processing Infrastructure Inefficiencies: India’s vegetable oil processing sector is dominated by small-scale, low-tech mills with only 30% utilization of refining capacity.
  • This underutilization leads to inefficiencies and waste, reducing effective output and increasing dependence on refined oil imports
• Limited Cultivation of High-Yield Oils Like Palm: Palm oil, which has much higher yield (14.6 t/ha) than other oils, is underutilized domestically.
  • Despite identified potential in 284 districts, palm oil cultivation remains limited. 
• Trade Policy Reliance and Global Price Volatility: India’s edible oil import structure is highly exposed to international price and supply fluctuations.
  • With 16.5 MT imported in 2022–23, any disruption in global markets (especially palm oil from Malaysia/Indonesia) severely impacts availability and price stability at home​.

Role of GM Crops in Edible Oil Self-Sufficiency

• Boosting Yield in Stagnant Crops: Despite being the largest soybean cultivator in the area, India’s yields have remained unchanged since the 1970s.
  • GM crops can help break this stagnation by introducing transgenic varieties with higher productivity.
• Reducing Edible Oil Import Dependency: India imports around 57% of its edible oil demand.
  • Advanced GM oilseed varieties can narrow the demand-supply gap by enhancing domestic production.
• Enhancing Drought and Pest Resistance: 76% of oilseed area is rainfed, vulnerable to climate shocks (e.g., soybean in MP/Maharashtra).
  • Drought-tolerant GM groundnut and castor can stabilize yields in dry regions (e.g., Gujarat, Rajasthan).
• Improving Oil Quality for Health & Industry: Traditional mustard contains high erucic acid; soybean oil lacks stability for frying.
  • Low-erucic acid GM mustard and high-oleic GM soybean improve nutritional profile and shelf life.
• Leveraging Farmer Responsiveness: Smallholder Indian farmers show high adaptability to new technologies.
  • Quick adoption of GM varieties by small farmers can drive national-level productivity gains.
• Technology Integration in National Missions: The NMEO mission supports integrating global technologies like genome editing for oil-rich seed development.
  • Forms part of the vertical expansion strategy in the roadmap to self-sufficiency.

Challenges of GM Crops in India’s Edible Oil Self-Sufficiency Strategy

• Increased Chemical Input Dependency: Bt cotton in India initially reduced pesticide use, but over time led to higher insecticide costs.
  • Study, published in the Journal of Agrarian Change, reports 37% higher pesticide spending by 2018 than in pre-Bt cotton era​.

• Regulatory Hurdles & Approval Delays: India’s GM crop approval process is slow and politicized (e.g., GM mustard DMH-11 faced litigation despite clearance).
  • Delays prevent timely adoption, keeping yields stagnant.
• Jevons Paradox Effect: Efficiency led to more planting of GM crops, which ultimately increased input use. 
  • The Jevons Paradox explains why GM crops may worsen resource overuse.
• Farmer & Consumer Resistance: Misinformation about GM safety reduces acceptance (e.g., “terminator gene” myths).
  • Low adoption even for approved crops (e.g., Bt cotton succeeded, but GM food crops face backlash).
• Seed Cost & Corporate Dependence: GM seeds are patented, raising costs and creating reliance on MNCs (e.g., Monsanto’s Bt cotton pricing disputes).
  • Smallholders (80% of oilseed farmers) may struggle to afford GM seeds annually.
• Biodiversity & Pest Resistance Risks: Monoculture of GM crops (e.g., HT soybean) may reduce agro-biodiversity and increase herbicide-resistant weeds.
  • Long-term sustainability threats (e.g., pink bollworm resistance to Bt cotton).
• Trade Barriers & Export Restrictions: GM crops face export bans (e.g., EU rejects GM-contaminated shipments).
  • Limits market access for Indian oilseeds (e.g., non-GM soybean fetches premium prices).
• Lack of Homegrown GM Alternatives: Reliance on foreign GM tech (e.g., DMH-11 uses Bayer’s barnase/barstar genes).
  • Royalty payments drain farmer incomes and limit R&D autonomy.

Key Government Schemes to Reduce Import Dependency in Edible Oils

• National Mission on Edible Oils – Oilseeds
  • Flagship scheme running from 2024–25 to 2030–31.
  • Objective: Raise oilseed production from 39 MT to 69.7 MT, and oil production from 12.7 MT to 20.2 MT.
• National Mission on Edible Oils – Oil Palm
  • Launched in August 2021 as a centrally sponsored scheme.
  • Objective: To increase oil palm cultivation and Crude Palm Oil (CPO) production to 11.20 lakh tonnes by 2025-26.
• Rashtriya Krishi Vikas Yojana – RAFTAAR (RKVY-RAFTAAR)
  • It was launched in 2007 as the Rashtriya Krishi Vikas Yojana (RKVY) and was renamed to RKVY-RAFTAAR in 2017.
  • Supports state-level oilseed promotion through funding approvals from State Level Sanctioning Committee.

Way Forward to Achieve Self-Sufficiency in Edible Oils

• Prioritize High-Yielding & Oil-Rich Seed Varieties: Accelerate development and distribution of genome-edited and GM seeds.
  • High-quality seeds can contribute up to 45% yield improvement when supported by good agronomic practices.
• Leverage Rice Fallow and Wasteland Areas: Expand oilseed cultivation into rice fallows (post-Kharif season) and degraded lands.
  • Using just one-third of fallow land in 10 states can add 3.12 MT to oilseed output.
• Modernize Processing and Supply Chain Infrastructure: Upgrade existing mills, improve logistics, and increase processing capacity utilization (currently just 30%).
  • Reduces post-harvest losses and improves overall oil yield.
• Strengthen R&D and Public-Private Partnerships: Boost investment in biotech research, precision farming, and oilseed-specific innovation hubs.
  • Sustained R&D is key to closing India’s yield gap with global leaders.
• Create Dynamic, Balanced Trade and Price Policy: Maintain a flexible import duty regime while ensuring profitable MSPs and procurement for oilseeds.
  • Ensures farmer interest, consumer price stability, and resilience against global shocks.
• Cluster-Based Seed Villages: Inadequate access to quality seeds and low SRR.
  • Implement the “One Block-One Seed Village” model via FPOs/FPCs (Farmer Producer Organization/Farmer Producer Company).
• Scaling Up Newly Bred ICAR Varieties: Newly bred varieties match global genetic potential (e.g., 3–3.5 t/ha for mustard).
  • Expand production and availability through focused scaling.
• Promote Rice Bran Oil for Blending: Rice bran can add nearly 1 MT/year oil.
  • Standardize blending regulations in collaboration with rice-producing countries.

Conclusion

India’s edible oil self-sufficiency hinges on adopting high-yielding GM crops, expanding palm oil cultivation, and modernizing processing infrastructure. Strategic interventions like leveraging rice fallows, enhancing seed replacement rates, and state-specific quadrant strategies can significantly reduce the 57% import dependency.