Dal and Oil: India's Kitchen Imports
Mustard, Soybean and Groundnut Farmers
How India's main oilseed crops are grown, why yields lag global levels, and how prices and weather affect oilseed farmers.
India grows several oilseed crops.
Main crops
- Soybean: mainly in Madhya Pradesh, Maharashtra and Rajasthan; much is crushed for soymeal (animal feed) as well as oil.
- Rapeseed-mustard: in Rajasthan, UP, Haryana and MP; mustard oil is traditional in north and east India.
- Groundnut: in Gujarat, Rajasthan and Andhra Pradesh.
- Sunflower, sesame and castor (castor oil is industrial; India dominates world castor exports).
Low yields
- Indian soybean yields are around 1 tonne per hectare, far below yields of close to 3 tonnes in the US and Brazil.
- Most oilseeds are rain-fed, making yields vulnerable to monsoons.
Why yields lag
- Limited irrigation.
- Older seed varieties.
- Restrictions on GM crops.
- Small farms with fewer inputs.
Soymeal exports
India exports soymeal, especially non-GM meal valued in some markets.
Price support
MSP exists for oilseeds, but procurement is limited compared with rice and wheat.
The soybean gap
A soybean farmer in MP harvests 1 tonne per hectare. A Brazilian farmer with irrigation, GM seeds and larger farms harvests nearly 3.
Thinking Indian oilseed yields match global levels
They lag far behind leading producers.
Key takeaways
- Soybean, mustard and groundnut are India's main oilseeds.
- Most oilseeds are rain-fed.
- Indian soybean yields are about a third of US and Brazil levels.
- Limited MSP procurement weakens incentives.
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