India palm oil output to triple in 6 years as farmers plant more: Agrovet

India's palm oil production is projected to triple within 6 years as the area under oil palm plantations expands and existing plantations mature for harvesting, according to a senior industry official. As the world's largest edible oil importer, India relies heavily on imports from Indonesia, Malaysia, and Thailand. The anticipated increase in domestic production aims to reduce edible oil imports, accounting for nearly two-thirds of total consumption. India's palm oil output is expected to rise to 1.2 to 1.5 million metric tons by 2030-31, up from approximately 400,000 tons, driven by an expansion in plantation areas, stated the CEO of the oil palm plantation division at Godrej Agrovet Ltd., Mr. Sougata Niyogi, India's largest palm oil producer.

Oil palm trees typically begin yielding fruit 3-4 years after planting, with significant increases in yield occurring around the 6-year mark. The area under oil palm cultivation has been rapidly increasing since the Indian government began offering incentives to farmers in 2021 to reduce vegetable oil imports, which cost the country US$ 15 billion in the last fiscal year. As of last year, the area under oil palm cultivation reached 375,000 hectares (926,600 acres), with an additional 80,000 to 100,000 hectares expected to be added this year. He noted, "Government policies are assisting farmers in expanding their planting areas. The new plantations should be ready for harvest by 2030-31, when we will see a significant increase in production." India imports around 16 million tons of vegetable oils annually, including 9 to 10 million tons of palm oil. Godrej Agrovet anticipates that its palm oil production will double to 250,000 tons by 2030-31. He also mentioned that a previous shortage of sprouts, essential for producing seedlings, has been resolved, allowing for accelerated oil palm planting.

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