The Solvent Extractors’ Association of India (SEA) has hailed the Government of India’s new Rs 1-lakh-crore Research, Development and Innovation (RDI) scheme as a landmark intervention that could reposition the country’s edible oil sector for long-term technological competitiveness and supply security.

In his monthly address to SEA members, Sanjeev Asthana, President of SEA, congratulated the government for what he termed a “visionary, future-forward step that finally aligns India’s agri-tech ambitions with patient, low-cost capital.”

“By offering long-term, low-cost financing for high-risk, high-impact research across deep-tech, agri-tech, biotechnology, clean energy and other sunrise sectors, the RDI scheme opens up entirely new frontiers for the edible oil industry,” Asthana said. He emphasised that the initiative could accelerate breakthroughs in improved oilseed varieties, climate-resilient farming systems, precision agriculture, processing optimisation, and digital traceability—critical levers to reduce India’s heavy import dependence and strengthen its domestic edible oil ecosystem.

Export Push: A Unified, Digital Mission

Asthana also welcomed the Union Cabinet’s recent approval of the Rs 25,060-crore Export Promotion Mission (EPM), calling it a long-awaited consolidation of fragmented export schemes into a single, digital, outcome-driven platform. Through its two pillars—‘Niryat Protsahan’ and ‘Niryat Disha’—the EPM aims to streamline access to trade finance, reduce compliance burdens, and enhance global readiness for MSMEs and labour-intensive sectors.

“SEA sees enormous potential to leverage the EPM to expand market opportunities for India’s agricultural commodities and value-added byproducts in both domestic and global markets,” he added.

Call for Crop Data Transparency

Asthana urged the Department of Agriculture to restore weekly sowing update data on crops, including oilseeds, under the ‘All India Crop Situation’ dashboard. The discontinuation of this dataset last year, he said, has hindered timely decision-making for oilmeal manufacturers, vegetable oil importers, and exporters. “Reliable crop data is essential for efficient planning, risk management and market alignment,” he stressed.

Record Oilseed Production — But Imports Remain High

The government’s final crop production estimates for 2024–25 indicate oilseed output at a record 429.89 lakh tonnes, a jump of 32.20 lakh tonnes year-on-year. Soybean production has climbed to 152.68 lt and groundnut to 119.42 lt—both posting strong double-digit growth.

While these numbers are encouraging, Asthana cautioned that edible oil imports remain elevated, showing no proportional decline despite higher domestic output. India continues to import around 160 lakh tonnes of edible oil, but the import bill has surged from Rs 1.31 lakh crore to Rs 1.61 lakh crore ($18.3 billion).

“This widening gap underscores the need for closer government–industry collaboration on crop estimation and market planning,” he said.

Rabi Sowing Trends and Price Signals

As of November 14, rabi oilseed acreage stands at 66.2 lakh hectares, up over 3 lakh hectares year-on-year. Mustard acreage alone has expanded by 3.7 lh, supported by strong price realisation—well above the MSP of Rs 6,200 per quintal. Rajasthan has already sown nearly 30.5 lakh hectares, completing 85 per cent of its normal area. “If weather remains favourable, a bumper crop is likely,” Asthana said.

Import Management and Policy Calibration

Asthana noted that the government’s move in July to widen the duty difference between crude and refined oils—from 8.25 per cent to 19.25 per cent—has effectively curtailed imports of refined palm oil (RBD).

However, a new challenge has emerged under the SAFTA Agreement, with refiners in Nepal exporting 70,000–80,000 tonnes per month of refined soybean and sunflower oils to India at zero duty. SEA has urged Union Commerce Minister Piyush Goyal to channelise such imports strictly through NAFED or designated government agencies to prevent market distortion.

Olive Oil Duty Cut to Benefit Consumers

Asthana also welcomed the Finance Ministry’s decision (Notification dated November 14) to reduce customs duty on crude pomace olive oil from 38.5 per cent to 16.5 per cent, following persistent SEA representations. Given that crude pomace oil is the most widely consumed olive oil variety in India, the reduction is expected to make it more affordable for a broad base of Indian consumers.

Strengthening the Road Ahead

Asthana reiterated that while India’s oilseed production is rising, import dependence remains structurally high. The RDI scheme, the Export Promotion Mission, and improved market data transparency, he said, collectively represent a pivotal moment for India’s edible oil ecosystem.

“With the right incentives, calibrated MSP reforms, and sustained innovation, India can move from chronic import dependence to a more self-reliant, technology-driven edible oil economy,” he concluded.