India is scaling up its domestic palm oil production through the National Mission on Edible Oils – Oil Palm, bringing roughly 0.3 million hectares under cultivation over the past five years to counter high import dependence, according to government and industry sources.
National Mission on Edible Oils Drives Acreage Expansion Across 15 States
India currently imports between 57% and 58% of its annual edible oil consumption of 25 MT to 26 MT, with palm oil accounting for roughly half of those shipments from producers like Indonesia and Malaysia, according to trade sources. To mitigate this import vulnerability, the Rs 11,040 crore National Mission on Edible Oils – Oil Palm has expanded cultivated area across 15 states including Andhra Pradesh, Telangana, Karnataka, Kerala, Odisha, Chhattisgarh, Gujarat, Assam, and Tripura.
An official told Financial Express that annual coverage jumped from 21,292 hectares in the 2022 financial year to over 84,000 hectares in the 2026 financial year, bringing total oil palm acreage to approximately 0.67 Mha against a target of 0.65 mha.
Did you know? Oil palm cultivation is five times more productive per hectare than oilseeds crops, offering farmers a steady income for 20 to 22 years after an initial four-year juvenile period, according to Godrej Agrovet CEO Sunil Kataria.
Private Sector Partnerships Fuel Fresh Fruit Bunches Production
Annual crude palm oil production from domestic sources currently sits at around 0.5 million tonnes, according to industry sources. Private companies including Godrej Agrovet, Patanjali Food, and 3F Oil Palm are partnering with the government and farmers in a tripartite model to scale up operations.
Sunil Kataria, CEO of Godrej Agrovet, stated that his company’s total area under oil palm cultivation has reached 80,000 hectares, with a target to reach 0.14 –0.15 Mha over the next four to five years. Meanwhile, Patanjali Food and 3F Oil Palm have estimated cultivation footprints of 90,000 hectares and 37,000 hectares respectively across 11 states, trade data shows.
Import Bills Mount as Global Producer Nations Raise Biofuel Targets
Supplies of imported cooking oil have recently faced disruptions, while global prices have surged because producer countries raised their biofuel targets, according to trade sources. Cooking oil imports were valued at $18.3 billion during the 2024–25 oil year running from November to October, and figures are expected to surpass $19 billion due to elevated global palm oil prices.
While Andhra Pradesh, Telangana, and Kerala currently account for 98% of total domestic production, supply chain bottlenecks during the initial rollout—such as COVID-19 disruptions that limited planting material availability—have occurred, as limited nursery infrastructure in the northeast affected availability of plating material and hampered area expansion.
Frequently Asked Questions
How much of India’s edible oil consumption is met by imports?
India imports approximately 57% to 58% of its total annual edible oil consumption, with palm oil making up nearly half of those imports, according to trade sources.
What is the current domestic production of crude palm oil in India?
Domestic crude palm oil production is currently around 0.5 million tonnes annually, generated from roughly 0.67 Mha of cultivated land, according to government data.
How long does it take for an oil palm tree to bear fruit?
An oil palm tree typically takes three to four years to bear fresh fruit bunches for extraction, with most private plantations reaching full maturity in eight years and bearing FFBs for the next twenty-five years.
Which states are the primary producers of palm oil in India?
Andhra Pradesh, Telangana, and Kerala are the major oil palm-growing states, accounting for 98% of the country’s total domestic production.
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