India nears target for oil palm plantation expansion

India has nearly reached the target set under its national oil palm development programme. As of March 2026, the country’s oil palm plantation area had expanded to around 640 thsd ha, representing almost 98% of the 650 thsd ha target established under the National Mission on Edible Oils – Oil Palm (NMEO-OP), launched in 2021.

The expansion is expected to support higher domestic palm oil production and reduce India’s dependence on imports. By the 2030/31 season, the country’s crude palm oil output is projected to reach 1.5 mln tons, nearly three times the current production level.

The states of Andhra Pradesh and Telangana remain the core production regions, accounting for approximately 98% of India’s oil palm output. Analysts say the success of these states demonstrates the crop’s strong commercial potential when supported by irrigation and modern farming practices.

According to industry estimates, farmers switching from lower-value crops to oil palm have already seen higher incomes. Most new plantations are being established on degraded land or areas previously planted with less profitable crops, helping to minimise pressure on forest ecosystems.

India views the continued expansion of its oil palm sector not only as a way to strengthen food security but also as part of its broader strategy to develop bioenergy and reduce reliance on imported vegetable oils. Higher domestic production could improve the country’s long-term supply security and lower future import requirements.

Tags: India, palm oil