Prospects for Increased Domestic Production of Oilseed Crops

20-May-2026 08:26 PM

Mumbai. The Solvent Extractors' Association of India (SEA)—a leading organization representing the indigenous vegetable oil industry and trade sector—states that prices of edible oils are currently running high in the international market, and the depreciation of the Rupee is making their import increasingly expensive.

This is providing an incentive for crushing and processing units to procure oilseed crops—such as soybean, mustard, and groundnut—from farmers at higher prices. If customs duty rates are increased, the import of edible oils will become even more costly, thereby indirectly encouraging Indian farmers to boost the production of oilseed crops.

The wholesale market prices for the three major oilseed crops—mustard, soybean, and groundnut—have surged past their respective Minimum Support Prices (MSP), ensuring attractive returns for farmers. The sowing of Kharif-season oilseed crops—soybean and groundnut—is scheduled to commence next month. The Central Government has announced a substantial hike in the MSP for both these oilseeds.

The Minimum Support Price for soybean has been raised from ₹5,328 per quintal to ₹5,708 per quintal, while the MSP for groundnut has been fixed at ₹7,517 per quintal, up from ₹7,263 per quintal. Additionally, significant increases have also been announced in the support prices for sunflower, sesame, and niger seed.

The support price for mustard is currently hovering around ₹6,200 per quintal. Consequently, the government has not found it necessary to procure mustard at the MSP. Reports indicate that approximately 1.6 million tonnes of mustard were crushed in April 2026, resulting in substantial financial gains for farmers. The market prices for soybean and groundnut have also risen significantly above their respective MSP levels.