The Indian Vegetable Oil Producers Association (IVPA) has requested the government to enhance the overall budgetary allocation for the National Mission on Oilseeds from ₹21,000 crore to ₹30,000 crore in the forthcoming Budget.
In a pre-Budget memorandum to the government, Sudhakar Desai, IVPA President, said the upward revision is essential to address structural constraints in domestic oilseed production and to meet the objective of achieving edible oil self-sufficiency of approximately 45 per cent by 2030-32.
The enhanced allocation may be strategically deployed across the priority areas: high-yielding and climate-resilient seeds, technology upgradation and advancement in refining capabilities, modern irrigation systems, expansion into ‘rice fallow lands’, processing and post-harvest infrastructure, and price assurance and market linkages, he said.
Extension of outlay
While the government has rightly accorded high priority to the National Mission on Edible Oils – Oilseeds (NMEO-OS) with a total financial outlay of ₹10,103 crore, and the National Mission on Edible Oils – Oil Palm (NMEO-OP) with a total outlay of ₹11,040 crore, the scale of current demand-supply gaps, rising import dependence, and evolving agronomic challenges necessitate a recalibration of financial support, he said.
“We also expect the budgetary outlay for the NMEO-OP be extended from its 2025-26 deadline to 2030-31. This three-year extension would be helpful to mitigate delays in the projects caused by sapling shortages and infrastructural challenges, ensuring the longer-term success of the mission and the targets set under the scheme,” he said.
To achieve self-sufficiency and ensure the success of the National Mission on Oilseeds and Oil Palm, the budget must address the severe liquidity constraints currently faced by processors, small refiners, and oilseed crushers. These financial limitations restrict procurement capacity and seasonal operations, thereby undermining the effectiveness of the National Mission. To remedy this, the IVPA recommends the introduction of sector-specific, low-cost credit facilities with interest rates of 7 per cent or below, he said.
Commodity exchange
He urged the government to undertake a regulatory review and accord approval for establishing domestic commodity exchanges for edible oils, with a view to enabling transparent price discovery, providing robust risk-hedging mechanisms, and strengthening overall sector resilience, thereby safeguarding farmers and other stakeholders from excessive market volatility.
PLI for edible oil
Seeking production-linked incentive scheme to edible oils, he said it will promote new and diverse products in different segments of the packaged oil industry, if brought into the edible oil sector. This shall also allow companies to foray into different markets.
IVPA President said the association expects the restriction on inverted duty refunds, specifically to the edible oil industry, to be withdrawn with retrospective effect. The burden of ITC (input tax credit) accumulation on all edible oil manufacturers will result in several players going out of business. With an increase in the GST rate on coal from 5 per cent to 18 per cent in GST 2.0, the accumulation for the edible oil sector is expected to increase substantially, he said.
Published on January 30, 2026