India’s palm oil production is expected to triple in six years due to increased area under oil palm plantations and mature plantations for harvesting. The world’s largest edible oil importer relies on Indonesia, Malaysia, and Thailand for palm oil supplies.
An increase in production will help India reduce edible oil imports, which account for nearly two-thirds of its total consumption. India’s palm oil production is expected to reach 1.2 to 1.5 million metric tons by 2030-31 from 400,000 tons.
Oil palm trees start yielding fruit 3-4 years after planting, with yields increasing significantly at around 6 years. The oil palm area has grown rapidly since New Delhi started incentivizing farmers in 2021 to curb vegetable oil imports.
India currently imports around 16 million tons of vegetable oils annually, including 9 to 10 million tons of palm oil, mainly from Indonesia, Malaysia, and Thailand.
