Palm Oil: Key to India’s Edible Oil Self-Sufficiency

India’s reliance on palm oil as a solution to its growing edible oil demand has sparked debates about its environmental and economic implications. However, Dr. Anupam Barik, former Additional Commissioner (Oilseeds) at the Department of Agriculture & Farmers Welfare, argues that public awareness and accurate information are essential to reshaping perceptions around palm oil.

“India consumes about 25 million tonnes of vegetable oil annually, but only 40% of this is produced domestically,” says Dr. Barik. With the demand growing by nearly a million tonnes each year, the country’s dependence on imports, particularly from Malaysia, is evident. “Palm oil already constitutes over 38% of our total edible oil consumption,” he explains, “and it is time we take proactive steps towards achieving self-sufficiency in edible oils through initiatives like the National Mission on Edible Oils-Oil Palm (NMEO-OP).”

Launched in 2021, NMEO-OP aims to expand oil palm cultivation to cover 650,000 hectares by 2025-26, producing 1.16 million tonnes of crude palm oil. “This initiative provides the potential for food and economic security,” Dr. Barik asserts.

Dr. Barik emphasizes the importance of collaboration with Malaysia, the world’s leading palm oil producer. “Malaysia’s palm oil industry contributes roughly $20 billion USD annually and supports nearly 450,000 households,” he notes. He further highlights that India, as Malaysia’s largest importer of palm oil, can benefit from its expertise in sustainable cultivation and smallholder farmer support.

The recent meeting between India’s Agriculture Minister Shivraj Singh Chouhan and Malaysia’s Minister for Plantations and Commodities, Datuk Seri Johari Abdul Ghani, has paved the way for bilateral cooperation. “Partnerships in areas like research, seed supply, and management practices will strengthen India’s NMEO-OP efforts,” says Dr. Barik.

Environmental concerns have long plagued palm oil cultivation, but Dr. Barik dismisses these as outdated narratives. “Palm oil is a highly productive crop, capable of yielding 4-5 tonnes of oil per hectare per year—far more than any other vegetable oil crop,” he explains. He also points out that palm oil requires significantly less land and water compared to alternatives like soybean and rapeseed.

“Contrary to claims, palm oil cultivation does not harm forest lands in India,” Dr. Barik clarifies. “The government has identified cultivable lands, mainly replacing less productive crops like rice, in agro-ecologically suitable regions, particularly in the North-East.”

Highlighting the economic viability of palm oil, Dr. Barik says, “Under NMEO-OP, farmers receive 85% financial assistance for planting material, assured buyback agreements, and protection against price volatility through viability gap payments.”

Additionally, he underscores the environmental benefits, stating, “Oil palm’s annual biomass productivity of 50 tonnes during its 30-year lifespan acts as an effective carbon sink, contributing to climate change mitigation.” Intercropping provisions further enhance sustainability, conserving land resources and supporting agri-horticultural systems.

“Misinformation around palm oil could be incredibly damaging to India’s future,” warns Dr. Barik. Accurate information and public awareness are crucial to countering negative perceptions and ensuring the industry’s sustainable growth.

Dr. Barik firmly believes that with the right policies and collaboration, palm oil can play a pivotal role in reducing India’s edible oil imports while supporting farmers and protecting the environment. “This is not just about economic security—it’s about food security and the well-being of our nation,” he concludes.