AP leads India’s oil palm revolution; Balancing growth & sustainability next challenge
Times Of India (04/11/2025) – Visakhapatnam: Andhra Pradesh accounts for about 80 per cent of the total crude palm oil (CPO) production of the country and has expanded its oil palm cultivation by about 122 per cent between 2010 and 2023. This represents an average annual growth rate of 5.86 per cent, largely driven by proactive govt initiatives. Over the same period, the total oil palm area in the country increased by 160 per cent (7.06% CAGR), with several other states recording faster growth from smaller baselines.
The CPO output has grown rapidly in Andhra Pradesh, registering a compound annual growth rate of 14.08 per cent, supported by price incentives and irrigation subsidies under the national edible oil mission–oil palm. Despite these gains, several challenges persist, including high input costs, water-intensive cultivation practices, and climate-related uncertainties. The expansion has also heightened pressure on land and water resources, particularly in ecologically sensitive regions. Sustainability concerns are largely centred around the substantial water footprint of the crop. Oil palm requires approximately 1.91 crore litres of water per hectare annually—more than double the 0.82 crore litres needed for marginal rice cultivation
Of this, around 1.33 crore litres must be drawn from surface and ground water sources during the dry, non-monsoonal months, as rainfall contributes only amin or chunk of the total water requirement.
The most critical challenge to sustainable expansion in Andhra Pradesh, therefore, lies in managing the crop's water demand. The state relies heavily on groundwater. And the ongoing depletion of aquifer levels in semi-arid regions, water availability poses a critical challenge to the sustainable expansion of oil palm cultivation. These findings were highlighted in a study conducted by researchers from the ICAR–National Institute of Abiotic Stress Management, Baramati, Maharashtra, and the University of Agricultural Sciences, Dharwad, Karnataka. The research team comprised Navyasree Ponnaganti, GM Hiremath, and Nobin Chandra Paul.
The study divided the growth trajectory of oil palm cultivation in Andhra Pradesh into three distinct phases. The first phase (2010–14) witnessed rapid expansion with moderate stability, as the cultivated area increased by 47.80 per cent, reflecting a high CAGR of 8.13 per cent.
The second phase (2015–19) was marked by slower yet highly stable growth. During this period, the area under cultivation expanded modestly by 16.49 percent, corresponding to a reduced CAGR of 3.10 per cent. This stabilisation phase was attributed to regional saturation, the maintenance of mature plantations, and dependable irrigation and input systems.
In contrast, the third phase (2020–23) saw renewed growth, with a 28.83 percent expansion in area and a higher CAGR of 6.54 per cent, accompanied by moderate instability.
"However, with Andhra Pradesh utilising only 47.5 per cent of its total potential area, there remains considerable scope for further expansion. Adopting sustainable practices in oil palm cultivation is essential to minimise environmental impacts, particularly under growing global pressures on land and natural resources. Improved water management techniques—such as drip irrigation and rainwater harvesting—will be crucial to mitigating the adverse effects of water-intensive cultivation. Addressing these challenges and reducing dependency on imports are key to achieving the dual goals of agricultural productivity and socio-economic development, thereby enhancing India's self-sufficiency in edible oil production," said Ponnaganti, Hiremath, and Paul.