India accelerates edible oil self-sufficiency drive amid Indonesia’s export restrictions

Indonesia’s tighter controls on palm oil and palm product exports are prompting India to accelerate the development of its domestic edible oil industry. Against the backdrop of restrictions on feedstocks used for biofuels, New Delhi sees the situation as an opportunity to reduce import dependence and strengthen its food and energy security.

Indonesia continues to ban exports of palm oil mill effluent (POME) and used cooking oil (UCO), reserving these feedstocks for domestic biodiesel and sustainable aviation fuel (SAF) production. The government is also considering centralizing exports of strategic raw materials through state-owned enterprises.

In response, India is stepping up implementation of its National Mission on Edible Oils – Oil Palm (NMEO-OP), launched in 2021. By March 2026, oil palm plantations had expanded to about 640 thsd ha, close to the target of 650 thousand hectares, while crude palm oil production is projected to reach 1.5 mln tons by the 2030/31 financial year, nearly triple current output.

Experts note that southern Indian states offer suitable conditions for oil palm cultivation. Andhra Pradesh and Telangana account for about 98% of the country’s production, and expanding plantations has significantly increased farm profitability compared with traditional crops.

The sector’s expansion is also aligned with environmental goals. New plantations are being established mainly on degraded land, while processing waste is used to produce biogas. As a result, India aims not only to reduce edible oil imports but also to accelerate renewable energy development and strengthen the competitiveness of its agricultural sector.

Tags: Indonesia, India, palm oil