India expands oil palm cultivation by 52,113 hectares in FY2025/26

India has expanded its oil palm cultivation by 52,113 hectares in the current 2025/26 fiscal year, with the states of Telangana and Andhra Pradesh leading the charge, according to officials from the Ministry of Agriculture.

This expansion is part of India’s ambitious National Mission on Edible Oils – Oil Palm (NMEO-OP), which aims to expand the country’s oil palm planting area and reduce dependence on edible oil imports.

With this recent addition, the total oil palm cultivation area under the NMEO-OP scheme stands at approximately 241,000 hectares since its launch in August 2021, while nationwide coverage of oil palm plantations has reached around 600,000 hectares.

This is a significant step toward the government’s target of one million hectares of oil palm plantations by the end of the decade to boost domestic crude palm oil production from around 350,000 tonnes in 2020 to 2.3 million tonnes by 2029.

Telangana contributed 12,005 hectares to the increase in cultivation, while Andhra Pradesh added 13,286 hectares, with other states such as Chhattisgarh, Goa, and Gujarat also participating in the expansion.

The government’s proactive measures, including sanctioning seed gardens and accelerating seed production, are aimed at addressing challenges such as lengthy nursery periods and promoting faster scale-up of plantations.

Farmers in Telangana and Andhra Pradesh are attracted to oil palm cultivation due to its higher returns compared to traditional oilseeds.

Many growers practice intercropping oil palm with cocoa and other crops, diversifying income while efficiently utilizing available land.

This adoption is supported by state-level initiatives offering financial incentives, technical support, and price assurances for fresh fruit bunches (FFB), thereby mitigating risks posed by volatile global crude palm oil prices.

India’s oil palm yield per hectare is notably higher than that of other oilseed crops, producing roughly ten times more oil per hectare compared to soybean, sunflower, rapeseed-mustard, and groundnut.

Despite this progress, India continues to import around 57% of its edible oil demand, mainly palm oil, highlighting the importance of domestic cultivation to improve self-sufficiency and reduce reliance on imports from Southeast Asian countries.

Under the NMEO-OP scheme, 24 mills with a combined crushing capacity of approximately 638.5 tonnes per hour have been approved, ensuring processing capacity keeps pace with cultivation expansion.

The government is also leveraging advanced agricultural technologies to boost productivity and sustainability across oil palm plantations.

However, Environmentalists have raised concerns about the ecological impact of large-scale oil palm plantations, particularly in biodiverse regions.

The government has responded by emphasizing that expansion will be limited to identified, non-forest areas and will follow sustainable practices.

India’s substantial growth in oil palm cultivation, led by Telangana and Andhra Pradesh, is a key element in the country’s broader strategy to achieve edible oil security, promote farmer income, reduce import dependency, and meet rising domestic demand.

Tags: cultivation, planting area, Plantations, India, yield, imports, oil palm