Trade and markets


Commodity Group
Oilseeds, oils and meals
Oil palm
Policy Category
Policy Instrument
Sector development measures
Stepped up efforts to promote oil palm cultivation across the country, in a bid to reduce reliance on imported edible oils. Measures included granting oil palm plantations access to public support programmes.
In a bid to reduce the nation’s reliance on imported edible oil, the Federal Government will step up its efforts to promote oil palm cultivation across the country (see also MPPU June’16). Restrictions on providing assistance to plantations cultivating more than 25 ha will be relaxed, and criteria for distributing support payments (for planting material, manuring, irrigation, inter-cropping and maintenance costs) are set to be revised. Both measures are aimed at attracting private entrepreneurs, corporate entities and cooperative bodies towards palm oil. The changes will be implemented in 133 districts across 12 states, primarily in the southern part of the country. For 2016, India’s total area under oil palm cultivation was estimated at 300 000 ha (comprising immature area), with average yields lingering around 0.5 tonne of oil per ha due to insufficient rainfall. In the meantime, roughly 60 percent of the country’s edible oil requirements continue to be satisfied through imports, with palm oil accounting for about 75 percent of the country’s edible oil import bill.