**Executive Summary**
This document outlines the Government of India's response to a starred question in the Lok Sabha concerning the modernization of oil mills, specifically addressing the use of low-technology methods, extraction efficiency, and governmental support for upgrading. The response, given on December 16, 2025, details the National Mission on Edible Oils-Oilseeds (NMEO-OS) and the National Mission on Edible Oils-Oil Palm (NMEO-OP), along with state-wise details of oil mills sanctioned under the NMEO-Oilseeds during 2025-26. Key goal is to double the country's edible oil production by 2030–31.
**Key Points / Main Content**
* **Oilseed Sector Overview:**
* Organized sector comprises approximately 15,000 oil mills (crushing units) with an annual capacity of approximately 36 million tonnes.
* 104 oil manufacturing units are registered in Churu District of Rajasthan.
* **Extraction Efficiency:**
* Efficiency is influenced by intrinsic oil content and technology used.
* Mechanical screw-presses show lower efficiency compared to solvent extraction.
* Table provided showing oil content, Mechanical Expeller Recovery, and Solvent Extraction Recovery of various oilseeds (Mustard/Rapeseed, Groundnut, Soybean, Sunflower, Sesame, Cottonseed, Castor).
* **National Mission on Edible Oils-Oilseeds (NMEO-OS):**
* Approved by the Union Cabinet on October 3rd, 2024.
* Outlay of ₹10,103.38 crore (central share ₹7,481.67 crore).
* Aims to increase oilseed production to 69.7 million tonnes by 2030-31.
* Aims to expand area coverage to 33 million hectares and improve productivity to 2,112 kg/ha by 2030–31.
* **NMEO-OS Implementation:**
* Implemented via cluster-based approach with market linkage.
* Managed by Value Chain Partners such as Farmer Producer Organizations (FPOs).
* Farmers receive high-quality seeds (up to 1 hectare) and training.
* Supports establishment and upgrade of post-harvest infrastructure (oil mills).
* 203 oil mills were sanctioned under NMEO-Oilseeds during 2025-26.
* **National Mission on Edible Oils-Oil Palm (NMEO-OP):**
* Aims to promote oil palm cultivation and enhance the availability of edible oils in the country.
* Focuses on expanding oil palm area and increasing Crude Palm Oil (CPO) production.
* Provides financial assistance to farmers for planting materials, inputs, and infrastructure.
* **Overall Objective:**
* Double the country's edible oil production by 2030–31 through dissemination of improved varieties and modern technologies.
* **Annexure-l:**
* Table showing state-wise oil mill sanctioned under NMEO- Oilseeds during 2025-26.
**Impact Analysis**
**Stakeholder: Oil Mill Operators (Small and Medium Scale)**
* **Impact:** Access to financial and technical support for technology upgradation. Potential for improved oil recovery rates and profitability with modernized equipment.
* **Action Required:** Explore and apply for financial and technical support programs offered under the NMEO-OS and NMEO-OP. Assess current technology and identify areas for improvement.
**Stakeholder: Farmers**
* **Impact:** Increased remuneration due to higher recovery rates and improved market linkages. Access to high-quality seeds and training on agricultural practices.
* **Action Required:** Participate in training programs. Adopt improved varieties and modern technologies to increase oilseed production.
**Stakeholder: Consumers**
* **Impact:** Potential for reduced dependence on edible oil imports and increased availability of domestically produced edible oils.
* **Action Required:** None specified.
**Stakeholder: Government of India**
* **Impact:** Supports the country's mission to become self sufficient in the edible oils sector.
* **Action Required:** Ensure effective implementation of the NMEO-OS and NMEO-OP, monitor progress, and address challenges in achieving the goals of the missions.
Key Entities Referenced
National Mission on Edible Oils-Oilseeds (NMEO-OS): A scheme approved in 2024 to boost domestic oilseed production and strive for self-sufficiency in edible oils.
National Mission on Edible Oils-Oil Palm (NMEO-OP): A mission implemented since 2021 to promote oil palm cultivation and enhance the availability of edible oils by expanding oil palm area.
Ministry of Agriculture and Farmers Welfare: The ministry responsible for answering the Lok Sabha starred question on the modernisation of oil mills.
Lok Sabha: The house of parliament where the question regarding modernisation of oil mills was raised.
NITI Aayog: Referenced for their 2024 report on the organized edible oil sector and strategy for accelerating growth in edible oil.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
STARRED QUESTION NO. 231
TO BE ANSWERED ON 16TH DECEMBER, 2025
MODERNISATION OF OIL MILLS
*231. SHRI RAHUL KASWAN:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी
be pleased to state:
(a) the number of oil mills in the country that continue to rely on low-technology,
mechanical crushing methods with sub-optimal oil recovery, including the
number of such units presently functional in Churu;
(b) whether the Government is aware of mechanical screw presses leaving behind 8-14%
of the expressible oil in the deoiled cake, making a large quantity of edible oil
unavailable for human consumption;
(c) if so, the measures taken by the Government to support modernisation of
extraction technologies;
(d) the financial or technical support extended to small and medium-scale operators for
such upgradation; and
(e) the expected gains in recovery rates, farmer remuneration and reduction of
edible oil imports from technology upgradation?
ANSWER
THE MINISTER OF AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी (SHRI SHIVRAJ SINGH CHOUHAN)
(a) to (e): A statement is laid on the Table of the House.STATEMENT IN RESPECT OF PARTS (a) TO (e) OF THE LOK SABHA STARRED
QUESTION NO. 231 DUE FOR ANSWER ON 16TH DECEMBER, 2025 REGARDING
MODERNISATION OF OIL MILLS:
(a) to (e): As per NITI Aayog’s 2024 report, the organized edible oil sector comprises “Oil
Mills (Crushing Units)” numbering around 15,000 with an annual capacity of approximately
36 million tonnes. (Source: NITI Aayog, Pathways & Strategy for Accelerating Growth in
Edible Oil Towards Goal Of Atmanirbharta). As per data of Udhyam registration, 104 oil
manufacturing units are registered in Churu District of Rajasthan.
As per information received from Directorate of Sugar & Vegetable Oils,
Department of Food and Public Distribution, the efficiency of edible-oil extraction is
influenced both by the intrinsic oil content of the crop and the technology used in
processing.
Oilseed Intrinsic Mechanical Solvent Notes
Oil Content Expeller Extraction
(%) Recovery (%) Recovery (%)
Mustard / 38–42 30–33 38–40 Largest domestic edible-oil
Rapeseed source; widely cultivated in
North India.
Groundnut 42–50 32–35 45–48 Gujarat & South India
produce majority; high oil
content.
Soybean 17–20 12–14 18–20 Key for edible oil & protein
meal; mostly solvent
extracted.
Sunflower 38–45 28–32 40–42 Sensitive to moisture;
solvent yields significantly
higher.
Sesame (Til) 45–55 35–40 48–52 Premium oil; mostly expeller-
processed traditionally.
Cottonseed 15–20 8–10 14–18 Low oil content; almost
always solvent extracted.
Castor (Non- 45–50 42–45 48–50 Used for industrial/chemical
edible) applications.
While mechanical screw-presses show lower efficiency, modern solvent-extraction
improves recovery substantially.
The Union Cabinet approved the National Mission on Edible Oils-Oilseeds (NMEO-
OS) on 3rd October, 2024 with an outlay of Rs. ₹10,103.38 crore (with a central share of
₹7,481.67 crore) to boost domestic oilseed production and to strive toward self-sufficiency
in edible oils. The mission aims to increase primary oilseed production to 69.7 million
tonnes, expand area coverage to 33 million hectares, and improve productivity to 2,112
kg/ha by 2030–31.The Mission is being implemented in a cluster-based approach with market linkage.
Value Chain Clusters are managed by Value Chain Partners such as Farmer Producer
Organizations (FPOs), cooperatives and other agencies. Under these clusters, farmers
are provided free high-quality seeds upto area of 1 hectare each and training on good
agricultural practices. In addition, the Mission also supports the establishment and
upgradation of post-harvest infrastructure (oil mills) to improve recovery from primary and
secondary sources. So far, 203 Oil Mills Sanctioned under NMEO- Oilseeds during 2025-
26, state wise details is enclosed at Annexure-I.
National Mission on Edible Oils-Oil Palm (NMEO-OP) also being implemented
since 2021, aims to promote oil palm cultivation and enhance the availability of edible oils
in the country by expanding oil palm area, increasing Crude Palm Oil (CPO) production,
and reducing the import dependence on edible oils. Under the Mission, financial
assistance is provided to farmers for planting materials, inputs for maintenance and
intercropping during the gestation period of up to four years, establishment of seed
gardens, nurseries, micro-irrigation facilities, borewells, pump-sets, water harvesting
structures, vermicompost units, solar pumps, harvesting tools, custom hiring
centres/harvester groups and for training of farmers and officers, as well as for replanting
of old oil palm gardens. Additionally, assistance is also provided for setting up of oil mills
for processing fresh fruit bunches (FFBs) for North Eastern States.
The objective of both missions (NMEO-OS and NMEO-OP) is to double the
country’s edible oil production by 2030–31 through the widespread dissemination of
improved varieties and modern technologies to farmers.Annexure-I
State wise oil mill sanctioned under NMEO- Oilseeds during 2025-26:
S. No. State Oil mill sanctioned in numbers
1 Andhra Pradesh 10
2 Assam 56
3 Chhattisgarh 10
4 Gujarat 9
5 Jharkhand 4
6 Karnataka 9
7 Maharashtra 22
8 Madhya Pradesh 11
9 Meghalaya 2
10 Nagaland 16
11 Odisha 16
12 Rajasthan 13
13 Sikkim 10
14 Telangana 10
15 Uttar Pradesh 3
16 West Bengal 2
Total 203
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