Greener Gold: India’s Oil Palm Revolution Promises a Rich Harvest for Economy and Farmers

Ramping up local production of palm oil is quick becoming a strategic economic win-win for India, industry players and government spokesmen say. As the world's largest importer of palm oil-a staple that ends up in everything from food to toiletries-India pays a high import bill and is exposed to international price volatility. Recent price shocks overseas and supply chain hassles have made self-reliance an imperative of the moment.

The government's National Mission on Edible Oils-Oil Palm (NMEO-OP) is to increase oil palm cultivation to 10 lakh hectares by 2025-26 and 16.7 lakh hectares by 2029-30. If realized, this would not only cut India's reliance on importation but potentially make the country a world leadership center for palm oil production. The NMEO-OP provides farmers with incentives and a helping hand in terms of viability gap funding and income support during the four-year incubation period prior to palms starting to produce. Intercropping choices also yield farmers interim income streams.

Oil palm is extremely profitable with yields up to five times greater than any other food oil crop and a commercially productive life of almost 30 years. Farmers in states such as Andhra Pradesh have experienced their income triple since they began growing oil palm. The crop is being cultivated on wasteland and degraded land, minimizing deforestation issues and potentially creating green cover.

Strong infrastructure and public-private partnerships are identified as the success factors. Investment in mills, training for farmers, and effective logistics is taking smallholders to market and optimizing returns.

Experts contend that with proper policies, India would not only be self-sufficient in edible oil but also a major exporter, making palm oil a money-spinner and not an economic drain. 

Source: The Hans India