Introduction
India is the fourth 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.
India’s oilseed sector plays a significant role in agricultural exports and overall economic growth, supported by rising production and global demand. As per the Department of Food and Public Distribution, exports of vegetable oils, oilseeds and de-oiled meal stood at around 5.22 million tonnes in FY2024-25, valued at Rs. 28,102.75 crore (US$ 3.25 billion), highlighting the sector’s contribution to India’s agricultural exports.
The oilseed sector is an important component of the Indian economy, with nine major oilseeds accounting for about 14.3% of the country’s gross cropped area, contributing 12–13% to dietary energy and accounting for about 8% of agricultural exports. India’s oilseed production reached an estimated record 43.06 million tonnes in FY2025-26. India contributes around 5–6% of global oilseed production and ranks first globally in the production of castor, safflower, sesame and niger, second in groundnut and third in rapeseed-mustard, strengthening its position in global oilseed markets.
India’s oilseeds production trend (million tonnes)
Source: Directorate of Oilseeds Development (DOD), PIB
India’s total oilseeds production is estimated at 43.06 million tonnes in FY26, according to the Third Advance Estimates released by the Ministry of Agriculture & Farmers Welfare. Groundnut production is estimated at a record 13.07 million tonnes, up from 11.94 million tonnes in FY25, while soybean production is estimated at 12.60 million tonnes. Rapeseed and mustard production is estimated at a record 13.77 million tonnes, compared with 12.67 million tonnes in FY25.
Nearly 76% of India’s oilseed cultivation is under rainfed conditions, making production vulnerable to climatic variations and yield instability. The Government is implementing the National Mission on Edible Oils–Oilseeds (NMEO-OS) to enhance domestic oilseed production and achieve self-sufficiency in edible oils. The mission aims to increase primary oilseed production from 39 million tonnes in 2022-23 to 69.7 million tonnes by 2030-31.
The production of oilseeds in India has continued to increase, reaching an estimated record 430.59 lakh tonnes in 2025-26, according to the Third Advance Estimates of the Ministry of Agriculture & Farmers Welfare. Groundnut production is estimated at a record 130.74 lakh tonnes, 11.32 lakh tonnes higher than the previous year’s 119.42 lakh tonnes, while soybean production is estimated at 125.96 lakh tonnes. Rapeseed and mustard production is estimated at a record 137.68 lakh tonnes, an increase of 11.01 lakh tonnes over 126.67 lakh tonnes in the previous year.
The largest oilseed-producing states in India include Rajasthan, Madhya Pradesh, Gujarat, Maharashtra, Haryana, Uttar Pradesh, West Bengal, Karnataka, Tamil Nadu and Telangana. Among these, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra are the major oilseed-producing states, together accounting for more than 77.68% of India’s total oilseed production. Rajasthan has a strong presence in rapeseed and mustard production, while Madhya Pradesh is a major producer of soybean. India’s total oilseed production is estimated at a record 430.59 lakh tonnes in FY26, according to the Third Advance Estimates of the Ministry of Agriculture & Farmers Welfare.
Export Trends
India oilseeds exports (US$ million)
Source: RBI Handbook of Statistics, Press Information Bureau, NIRYAT portal
Note: FY27* - April to July
India’s oilseed exports were valued at US$ 368.08 million during April-July 2026-27. Groundnut accounted for the largest share of oilseed exports at 53.13%, followed by sesame seeds at 37.40% and other oilseeds at 8.76%, while niger seeds accounted for 0.71%. During the same period, oilseed imports were valued at US$ 395.98 million, registering a year-on-year increase of 748.66%. The export basket remained diversified across groundnut, sesame seeds, niger seeds and other oilseeds. From a destination perspective, Indonesia was the leading market for India’s oilseed exports, with exports valued at US$ 45.47 million, followed by Malaysia at US$ 35.77 million and Vietnam at US$ 33.08 million. Other major destinations included China at US$ 26.35 million, Thailand at US$ 24.73 million, and the Philippines at US$ 17.07 million. The United States, South Korea, Bangladesh and Russia also featured among the key export destinations, with exports valued at US$ 14.74 million, US$ 14.64 million, US$ 13.43 million and US$ 13.32 million, respectively. The distribution highlights the strong presence of Asian markets in India’s oilseed export basket, alongside demand from markets such as the US.
Export Market
India’s oilseeds are exported to several global markets, with key destinations including Indonesia, Vietnam, Malaysia, China, the UAE, Thailand, the Philippines, Russia, South Korea, the USA and Bangladesh. During April-July FY27, total oilseed exports stood at US$ 368.08 million, compared with US$ 1.21 billion in FY26. The export performance reflects continued shipments across diverse international markets, with Asian countries remaining important destinations for Indian oilseed products.
India exports groundnuts to several international markets, with Indonesia, Vietnam, Malaysia, China and the Philippines being the major destinations in FY26. India exported 6.64 lakh tonnes of groundnuts valued at US$ 690.93 million during the year. During FY27 (April-June 2026), shelled groundnut exports stood at 1.33 lakh tonnes, valued at Rs. 1,665.7 crore (US$ 175.4 million). Niger seeds continue to be exported primarily to the US, alongside markets such as Canada, the UK, Algeria, Mexico, Indonesia, Iran, Russia, Japan and Belgium. India also exports sesame seeds to a diverse set of markets, including the US, Canada, Australia, UAE, Vietnam, Russia and Indonesia. During FY27 (April-June 2026), sesame seed exports stood at 61,248 tonnes, valued at Rs. 1015.60 crore (US$ 106.94 million).
Government Initiatives
The Government of India has undertaken several initiatives to strengthen the sector and enhance export potential, primarily through the National Mission on Edible Oils–Oil Palm (NMEO-OP) and the National Mission on Edible Oils–Oilseeds (NMEO-Oilseeds). These initiatives focus on increasing domestic production, improving productivity, expanding cultivation areas, and strengthening value chains to reduce import dependence and enhance export competitiveness. Additional policy support through higher Minimum Support Prices (MSP), promotion of high-yielding seed varieties, cluster-based development, and improved market linkages continues to support farmer incomes and sectoral growth.
The National Mission on Edible Oils–Oil Palm (NMEO-OP), approved in 2021-22, has a total financial outlay of Rs. 11,040 crore (US$ 1.48 billion), comprising Rs. 8.78 crore (US$ 1.18 million) as the Government of India share and Rs. 2,195.3 crore (US$ 295 million.) as the State share. The mission was implemented during 2021-22 to 2025-26, during which 2.73 lakh hectares were brought under oil palm cultivation. For 2026-27, Annual Action Plans of Rs. 1,139.6 crore (US$ 120 million). have been approved for implementing states.
Under NSFM – Oilseeds programme, the states and agencies are provided support for the 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.
Atmanirbhar Oil Seeds Abhiyan
National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds) with a financial outlay of Rs. 11,017 crore (US$ 1.16 billion) over seven years, aims to increase domestic oilseed production from 39 million tonnes in FY23 to 69.7 million tonnes by FY31.
Under the Union Budget 2026-27, the Government has set a 459 lakh tonnes oilseed production target for 2026-27, along with coverage of 304 lakh hectares under primary oilseeds and 10 lakh hectares under 600 value-chain clusters. The Government has also targeted 5.48 lakh quintals of free seed distribution to farmers during the year.
The mission is being implemented through a cluster-based approach with market linkages, improved seed systems, demonstrations, post-harvest infrastructure and procurement support. More than 600 Value Chain Clusters have been operationalised, while 13.52 lakh hectares were covered under free seed distribution during 2025-26.
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) is an apex export promotion body established in 1956 (earlier known as IOPEA) to promote and develop India’s exports of oilseeds, vegetable oils and related products. Recognised by the Ministry of Commerce, Government of India, the council acts as a key interface between exporters, government agencies and global buyers, supporting trade facilitation, market access and international promotion activities. It works to enhance the competitiveness of Indian oilseed products by providing market intelligence, organising trade events, ensuring quality standards and strengthening the domestic supply chain by engaging farmers, processors and exporters. Overall, IOPEPC plays a significant role in positioning India as a reliable global supplier of oilseeds and allied agricultural commodities.
FAQs
Groundnut is the leading contributor to India’s oilseeds exports, accounting for 53.13% of total oilseed exports during April-July FY27, followed by sesame seeds at 37.40%. In FY26, India exported 6.64 lakh tonnes of groundnuts valued at US$ 690.93 million.
Groundnut and sesame together accounted for 90.53% of India’s oilseed exports during April-July FY27. During April-June FY27, shelled groundnut exports reached US$ 175.4 million, while sesame seed exports stood at US$ 106.94 million, highlighting their importance in India’s oilseed export market.
Indonesia was the largest destination for India’s oilseed exports during April-July FY27 at US$ 45.47 million, followed by Malaysia at US$ 35.77 million and Vietnam at US$ 33.08 million. China, Thailand, the Philippines, the US, South Korea, Bangladesh and Russia were also key markets.
Value addition through processing, refining and products such as soybean meal, oil meal blends and value-added oils is strengthening India’s export basket. The sector’s processing and supply-chain capabilities, combined with government support for post-harvest infrastructure and value chains, are helping improve the export potential of oilseed products.
The Indian Oilseeds and Produce Export Promotion Council supports oilseeds exports through market intelligence, trade events, quality standards, market access and international promotion. Government initiatives such as NMEO-Oilseeds, improved seed varieties, cluster development and stronger market linkages further support production and export competitiveness.
Gujarat, Rajasthan, Madhya Pradesh, Maharashtra, Andhra Pradesh and Odisha have important oilseed export-oriented ecosystems. Gujarat benefits from refining capacity and port connectivity, Madhya Pradesh from soybean processing, Maharashtra from agricultural export zones, while Andhra Pradesh has coastal port networks and Odisha is developing new markets.
Rising edible-oil consumption and changing production economics are reshaping the oilseed ecosystem. India’s strong position in sesame, castor, safflower and niger, along with diversified demand across Asian and developed markets, creates opportunities for Indian exporters to expand their presence in international oilseed markets.
Oil meals, minor oils, soybean meal and value-added oils among India’s processed and value-added oilseed products. Exports of oil meals, oilseeds and minor oils reached about 5.44 million tonnes, valued at US$ 3.57 billion, in FY24, demonstrating the scale of this export segment.
India’s oilseed exports are spread across a wide international market, with groundnuts reaching more than 85 countries and sesame seeds more than 100 countries. Key destinations include Indonesia, Vietnam, Malaysia, China, South Korea, the US, Russia, UAE and Bangladesh, supporting greater diversification of oilseeds exports.
India’s Oilseeds Industry is being supported by higher production targets, improved seeds, value-chain clusters, post-harvest infrastructure and stronger market linkages. NMEO-Oilseeds aims to raise primary oilseed production from 39 million tonnes in FY23 to 69.7 million tonnes by FY31, strengthening the production base for future oilseeds exports.
RELATED SITES
IOPEPC, 78/79, Bajaj Bhavan,
Nariman Point,
Mumbai - 400021
Maharashtra
India
Tel.:+91-22-22023225
Fax:+91-22-22029236
Email: Email:info@iopepc.org
Website: http://www.iopepc.org
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