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India's oilseeds acreage rises 3% on good rains, may attain Centre's coverage target

India's Kharif oilseeds acreage rose nearly 3% to 180.20 lakh hectares, recovering from a two-month shortfall, according to The Hindu BusinessLine. Groundnut, soyabean and sesamum sowings increased while castorseed area fell 23%, with Gujarat down 44%. Officials said acreage may reach the normal ~200 lh if August monsoon rains remain favourable.

iG
iGEN Editorial
August 7, 2026
India's oilseeds acreage rises 3% on good rains, may attain Centre's coverage target

India's Kharif oilseeds acreage has risen nearly 3 per cent to 180.20 lakh hectares (lh), recovering an initial shortfall that persisted for almost two months after sowing began, according to The Hindu BusinessLine. Officials expect the area to reach the normal level of about 200 lh if August monsoon rains remain favourable, which would let the season close with higher coverage than initially feared.

Oilseeds Mission enters fourth season

The acreage recovery comes in the fourth season since the launch of the Oilseeds Mission in Rabi 2024. According to a senior official quoted by The Hindu BusinessLine, the first two seasons of the Mission witnessed lower acreage, and only in the last Rabi season did the oilseeds area increase, thanks to robust mustard prices in mandis. The official said it was feared the area might decline again, but a good monsoon in July not only covered the initial shortfall but pushed current acreage higher, and the trend is expected to continue till the end of this month.

After the launch of the Oilseeds Mission in Rabi 2024, this is the fourth season. While the first two seasons witnessed lower acreage, only in the last Rabi season the oilseeds area increased thanks to robust mustard price in mandis. Earlier, it was feared that there might be again a decline, but thanks to a good monsoon in July, not only the initial shortfall covered, but now it is higher. Hopefully, this trend will continue till end of this month.

— A senior official, as reported by The Hindu BusinessLine.

Crop-wise sowing trends

Groundnut, soyabean and sesamum have all posted gains, while castorseed remains the outlier with a sharp contraction. According to official sources cited by The Hindu BusinessLine, the area as of Friday under groundnut was 46.82 lh, up 8.6 per cent; soyabean stood at 119.92 lh, up 0.2 per cent; and sesamum at 9.96 lh, up 16.9 per cent. Castorseed area, however, is 23 per cent lower at 2.27 lh, with Gujarat — the largest grower of castor seeds — reporting a 44 per cent fall in acreage to 1.3 lh, sources said.

Crop Area (lakh hectares) Change
Groundnut 46.82 +8.6%
Soyabean 119.92 +0.2%
Sesamum 9.96 +16.9%
Castorseed 2.27 –23%
Total Kharif oilseeds 180.20 +3%

Government targets vs Kharif 2025 actuals

The government is targeting an oilseeds acreage of 206.45 lh and production of 289.25 lakh tonnes (lt) during Kharif 2026, according to the report. The target breaks down into 113.50 lt of groundnut, 148.50 lt of soyabean, 21.50 lt of castor and 4.20 lt of sesamum. Actual oilseed output during Kharif 2025 was 266.68 lt from an area of 196.38 lh, The Hindu BusinessLine reported.

Monsoon: west surplus, central deficit

Weather data in the report show the monsoon remains uneven. After 35 per cent deficient rainfall in June and 1 per cent surplus in July, the first week of August witnessed 4 per cent below-normal precipitation, and monsoon rainfall across the country between June 1 and August 7 is now recorded at 11 per cent lower than normal, according to The Hindu BusinessLine.

Among the major oilseeds growing states, Madhya Pradesh has reported 56 per cent deficient rain, Maharashtra 25 per cent less and Rajasthan 20 per cent less during the first week of August — though officials said there was adequate rainfall for oilseeds crops in these three states in the last week of July. On the other hand, states with surplus rainfall in the first week of August include Gujarat (60 per cent), Tamil Nadu (45 per cent), Karnataka (24 per cent) and Uttar Pradesh (36 per cent). Telangana reported a 22 per cent shortfall in rain, though its overall season deficit since June 1 is only 5 per cent less.

Reading the acreage data

The key metric for oilseed market participants remains the gap between current coverage of 180.20 lh and the normal level of about 200 lh, alongside the government's Kharif 2026 target of 206.45 lh. The castorseed contraction in Gujarat is the sharpest negative signal in the data, while groundnut and sesamum gains are the strongest positives. With actual Kharif 2025 production at 266.68 lt against a target of 289.25 lt for Kharif 2026, the August monsoon will decide whether India closes the remaining acreage gap and approaches the Centre's coverage goal, as reported by The Hindu BusinessLine.


Sources: AGRI_TIO

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