India is increasing oil palm plantings

India has made radically reducing its dependence on palm oil imports a key priority in its agricultural policy. The goal is to increase palm oil production from 350,000 tonnes in 2020 to 2.3 million tonnes in 2029.

India currently imports 57% of its edible oils. It is the number one importer of palm oil (19% of global trade) – and purchases it from Indonesia, which is considering reducing palm oil exports starting in 2027 in favor of increasing domestic biofuel production.

In this fiscal year (April 1, 2025 – March 31, 2026), India has allocated 52,100 hectares of new land for oil palm. The trees are being planted under the National Mission on Edible Oils – Oil Palm (NMEO-OP) program.

The program, which has been implemented since 2021 to reduce dependence on imported edible oil, has already covered 241,000 hectares of new palm plantations.

In India, oil palm is grown on 600,000 hectares. The immediate goal is to cover another 200,000 hectares, and by 2029, to cover at least 1 million hectares.

To achieve this, India imports palm seedlings. They are grown in nurseries for 18 months and then planted in fields. In 2025, to scale up the process, the government authorized the creation of plantations where palm seedlings will be grown from seeds.

A total of 2.8 million hectares suitable for growing these trees have been identified. The oil yield per hectare of palm is up to 10 times higher than that of soybeans, sunflowers, rapeseed, mustard, and peanuts.

By developing the palm industry, the government will be able to diversify risks and improve its domestic balance, but it will clearly not be possible to eliminate its dependence on palm oil imports in the foreseeable future.

Even with 2.8 million hectares of palm oil planted, India would have an area incomparable to Indonesia’s (16.8 million hectares). Furthermore, palm trees still need to be cultivated: they begin bearing fruit after three years, and their peak productivity is 15-18 years.

Tags: palm oil, India