Insight (22/02/2025) - India’s diverse agro-ecological landscape, stretching from the Himalayas in the north to the Deccan Plateau in the south, makes it one of the world’s leading agricultural nations. This diversity enables the country to be the largest producer of milk, pulses, spices and jute, and the second-largest producer of rice, wheat, sugarcane, tea, fruits and vegetables. It also supports the cultivation of non-native crops such as oil palm, a high oil-yielding perennial crop with immense potential under Indian conditions. Oil palm is the highest yielding edible oil tree crop, capable of producing 4–5 tonnes of palm oil and 0.4–0.5 tonnes of palm kernel oil per hectare per year. As demand for edible oils continues to rise, such high productivity per hectare makes oil palm a strategically important crop for enhancing domestic edible oil availability.

Suitable for Indian Conditions

In India, oil palm is grown as an irrigated crop, unlike in countries such as Malaysia and Indonesia where it is cultivated extensively under rainfed conditions. Oil palm is a humid, tropical crop requiring temperatures between 22–33°C, bright sunlight for at least five hours per day, humidity above 80 percent, and evenly distributed rainfall of about 150 mm per month or 2,500–4,000 mm annually for optimal growth and yield.

Given India’s uneven and often inadequate rainfall distribution, oil palm cultivation relies on assured irrigation. Even in the Northeast region, where it is grown under rainfed conditions, the adverse effects of prolonged dry spells can be minimised through intermittent irrigation. The crop thrives in deep, well-drained loamy soils and adapts well to drip and micro-sprinkler irrigation systems. With a productive lifespan of up to 30 years, oil palm offers farmers a stable and long-term income source.

Scope for Expansion

India has significant scope for expanding oil palm cultivation due to the availability of vast tracts of land across diverse agro-climatic zones and untapped groundwater potential in suitable areas. The crop’s high yield and efficient land utilisation make it a strategic option for boosting domestic edible oil production.

Recognising this potential, the Government of India constituted committees in 1988, 2006, 2012 and 2020 to identify suitable areas for oil palm cultivation. The 2020 assessment using Remote Sensing and Geographic Information Systems, followed by field validation, recommended 27.99 lakh hectares across 22 states. Currently, about 5.27 lakh hectares are under oil palm cultivation in 16 states. Major growing states include Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Kerala and Mizoram. The Northeast region alone has 9.62 lakh hectares identified as suitable, yet only 0.39 lakh hectares are presently cultivated, indicating substantial room for expansion.

Environmental Compatibility

Oil palm is considered environmentally compatible when cultivated under recommended guidelines. No state in India has reported environmental damage directly attributable to oil palm cultivation. Due to its high biomass production, the crop acts as an effective carbon sink, contributing to climate change mitigation.

In India, oil palm is promoted primarily on agricultural land by replacing low-value crops and is not recommended as a substitute for forests. With its long life cycle, oil palm plantations function similarly to temporary forests, improving environmental conditions. The substantial biomass generated enhances soil biological activity and improves soil health. However, successful cultivation depends on scientific management, particularly efficient water and nutrient management practices.

Government Support and Research Backing

The Government of India has consistently promoted oil palm to reduce the country’s edible oil import dependence and shield the sector from global price volatility and supply disruptions.

The Indian Council of Agricultural Research established the Indian Institute of Oil Palm Research in Pedavegi, Andhra Pradesh, in 1995 to develop technologies aimed at improving productivity and sustainability. The institute has formulated best management practices for oil palm cultivation under both irrigated and rainfed conditions and continues to provide technical guidance to farmers.

In 2021, the Government launched the National Mission on Edible Oils – Oil Palm (NMEO-OP) with an outlay of Rs. 11,040 crore to enhance self-sufficiency in edible oils and improve farmers’ incomes through sustainable oil palm expansion. Over the past five years, around 2.0 lakh hectares have been added under cultivation, bringing the total area to 5.27 lakh hectares, with annual crude palm oil production reaching 3.80 lakh tonnes. These outcomes demonstrate that oil palm is not only suitable but highly productive under Indian agro-ecological conditions when supported by research, policy, and scientific management.

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