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Palm Oil Cultivation: India’s Edible Oil Challenge and Push for Sustainability

Key stakeholders emphasized the importance of public-private partnerships and government support in promoting sustainable oil palm production, especially in regions like Assam.

By Shruti Verma
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National Workshop - Sustainable Oil Palm Cultivation Concludes in Guwahati

India, the world’s largest importer of edible oils, has been grappling with an ever-increasing consumption that far outpaces its domestic production. Given the country’s increasing demand for edible oil and the need to reduce dependency on imports, the mission emphasizes environmentally sustainable practices and aims to enhance self-sufficiency. The Vision-2050 document, prepared by the ICAR-Indian Institute of Oil Palm Research (IIOPR) reflects a futuristic roadmap for the sustainable development of the palm oil sector in India.

A two-day National Level Review and Workshop on Sustainable Oil Palm Cultivation, organized by the Department of Agriculture, Assam, in partnership with the Department of Agriculture and Farmers’ Welfare (DA&FW), Government of India, in Guwahati, reviewed the progress of the Mission on Edible Oil, Oil Palm (NMEO-OP) and brought together a wide range of stakeholders, including representatives from government agencies, private sector companies, farmers, and international organizations, to discuss the future of oil palm cultivation in India with a focus on sustainability and best practices.

Currently, the country imports over 133.52 lakh tonnes of edible oils annually, costing approximately ₹80,000 crore. Of these imports, palm oil alone accounts for a staggering 56%, followed by soybean oil (27%) and sunflower oil (16%). With per capita consumption rising from 15.8 kg in 2012-13 to nearly 19 kg per person today, the demand for edible oils continues to soar, placing enormous pressure on India’s import bills.

Major Oil Palm Growing Indian States and Potential Growth

Andhra Pradesh, Telangana, and Kerala are the leading oil palm-producing states, accounting for 98% of India’s total production. Additionally, Karnataka, Tamil Nadu, Odisha, Gujarat, and Mizoram have significant areas under oil palm cultivation. Recently, North-Eastern states like Arunachal Pradesh, Assam, Manipur, and Nagaland have launched large-scale oil palm plantation programs, highlighting their growing importance in the sector.

In 2020, the ICAR-Indian Institute of Oil Palm Research (IIOPR) reassessed the potential area for oil palm cultivation in India, estimating around 28 lakh hectares. Of this, 18.37 lakh hectares are in general states, while 9.62 lakh hectares lie in seven northeastern states. Currently, only 38,992 hectares in the Northeast are under cultivation, leaving substantial room for expansion. With a production of 2.72 lakh tonnes of crude palm oil (CPO) from 1.87 lakh hectares in 2020-21, the country, especially the northeastern region, holds significant potential for growth in oil palm cultivation.

The Groundwork: Self-Sufficient and Sustainable Future For India

The palm oil sector in India faces significant challenges despite its high yield potential. Oil palm, a relatively new crop in India, originates from West Africa and takes 8-9 years to mature, making rapid scale-up difficult. While it can produce 20-25 metric tonnes of fresh fruit bunches per hectare, concerns over environmental impacts, water usage, and deforestation have always been discussed alongside sustainable palm oil practices. India aims to avoid the mistakes seen in other major palm-oil-producing nations, where unsustainable methods have caused habitat destruction and large-scale deforestation.

India’s palm-oil trade relationship with Malaysia has also faced tensions. Diplomatic disagreements in recent years have led India to curb palm oil imports from Malaysia, world’s top palm oil producers which faced significant economic repercussions affecting its palm oil sector. With the growing consumption and reliance on imports, India’s push for self-reliance through initiatives like the National Mission for Edible Oils – Oil Palm (NMEO-OP) is timely. However, the challenge lies in scaling up production sustainably, ensuring environmental protection while securing economic interests.

Image source: The Versatility of Palm Oil

Challenges and Opportunities in Oil Palm Cultivation in India

Oil palm cultivation in India faces several challenges. The crop has a long gestation period, taking 8-9 years to reach optimal production, which delays returns on investment. It is also highly water-intensive, posing difficulties in regions with limited irrigation resources. Limited domestic production is another issue, as the sector depends heavily on high-quality planting materials and efficient management. Environmental concerns such as deforestation and biodiversity loss, observed in other palm oil-producing countries, further complicate large-scale expansion. Additionally, a lack of farmer awareness regarding cultivation practices and market access hampers growth.

Read more: Godrej Agrovet to Set Oil Palm Processing Unit in Tripura

Despite these challenges, there are significant opportunities in oil-palm cultivation. The crop has a high yield potential, producing five times more oil per hectare than traditional oilseeds. Expanding domestic production can reduce India’s heavy reliance on palm oil imports, saving foreign exchange. There is also scope for sustainable practices, as eco-friendly techniques can support the development of a greener sector. Government support through policies like the National Mission on Sustainable Oil Palm Cultivation provides financial and technical aid to farmers. Furthermore, public-private partnerships are driving investment and innovation, boosting the sector’s growth.

Focus on Global Best Practices and Sustainability

The workshop highlighted technological advancements, including Shell Gene technology, aimed at improving sapling quality and oil yields. Emphasis was placed on the availability of high-quality planting material, essential for successful oil palm cultivation. Discussions also covered the health and nutritional benefits of palm-oil, addressing common misconceptions.

International experts from the Council of Palm Oil Producing Countries (CPOPC) provided insights into global trends and regulations. Representatives from the Roundtable on Sustainable Palm Oil (RSPO) and WWF discussed sustainability and climate resilience, offering strategies for India to adopt sustainable practices.

Industry leaders including Godrej Agrovet Ltd (GAVL), 3F Oil Palm Pvt LtdPatanjali Foods Ltd (PFL), and AAK played an active role in the event, sharing their experiences within the oil-palm value chain. Their insights emphasized the crucial role of the private sector in expanding sustainable oil-palm production in India, particularly by leveraging public-private partnerships. Additionally, International experts, in collaboration with Indian agronomists, highlighted the need for a balanced approach to oil palm cultivation that ensures long-term environmental sustainability without compromising productivity.

Image source: The State-wise Oil Palm Data

About the National Mission for Edible Oils – Oil Palm (NMEO-OP)

The Government of India launched the National Mission for Edible Oils – Oil Palm (NMEO-OP) in August 2021 to reduce the country’s reliance on imported edible oils, particularly palm-oil, which accounts for over 56% of India’s imports. This dependence not only impacts the economy but also exposes India to global price fluctuations. To address this, the mission focuses on boosting domestic palm oil production, the most efficient vegetable oil crop in terms of yield per hectare, through targeted financial and technical support.

The NMEO-OP provides farmers with financial incentives, viability gap funding, irrigation support, and research investments to improve productivity. It targets north-eastern states, the Andaman and Nicobar Islands, and other suitable areas for oil palm cultivation. Public-private partnerships are a key feature, involving industry stakeholders to ensure better market access and efficient supply chains for farmers.

The mission aims to cover an additional 6.5 lakh hectares of oil palm cultivation by 2025-26, elevating Crude Palm Oil (CPO) production to 11.20 lakh tonnes. Progress has been made in states like Arunachal Pradesh, Assam, and Andhra Pradesh, although challenges like irrigation demands and environmental concerns remain. The mission plays a critical role in reducing import dependency while promoting sustainable agriculture and improving farmers’ incomes.

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