Productivity enhancement, area expansion are the key to success for oil palm industry in India
India faces a significant gap between its edible oil production (12.7 million tonnes) and consumption (28+ million tonnes) during 2023–24, leading to a $15.96 billion import bill. Traditional oilseeds, grown on 30 million hectares with low productivity, cannot bridge this gap. Experts recommend sustainable expansion of oil palm cultivation, though high investment and farmer hesitation hinder rapid growth.
In India, our domestic production of edible oils (12.7 million tonnes) during the oil year 2023-24 (Nov’23- Oct’24) falls far short of the country’s consumption requirement (more than 28 million tonnes) during the corresponding period. The traditional oil seeds are grown on about 30 million hectares (ha) in India with a total production of 42.8 million tonnes (estimated). This translates to an average productivity of oil seeds of 1.42 tonnes per ha per year. Oilseeds account for 13 per cent of gross cropped area and around 10 per cent of the total value of output from all agricultural commodities. The Indian demand–supply gap in edible oils is widening. The foreign exchange outgo for purchasing edible oils (as essential commodity) is around $15.96 billion during the oil year 2023-24.
If India wants to produce as much edible oil as it is consuming through its traditionally grown oil seeds, the country will need at least 30 million ha under cultivation, and this is impossible to achieve (ref. only palm oil can help India achieve self-sufficiency in edible oil- Ashok Gulati). Value-added crops such as oil palm (OP) should be continued, and grown sustainably and extensively through crop conversion in agricultural field.
As of FY2024- 25, India produced around 0.45 million tonnes of crude palm oil (CPO) tentatively and is expected to increase to more than 1. 2 million tonnes by FY2030-31. The problem that holds back the quick expansion of OP cultivation and its productivity is mainly high capital investment, which is a roadblock. There is a huge mental block too for small farmers, since they believe any change would be recipe for disaster, so far crop conversion is concerned.
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Source : The Hindu Business line
