New white paper charts India’s path to palm oil self-sufficiency by 2047

Solidaridad Asia, in collaboration with The Solvent Extractors’ Association of India (SEA) and the Asian Palm Oil Alliance (APOA), released a research-backed white paper titled Path to Palm Oil Self-Sufficiency in India. The white paper provides a comprehensive strategy to reduce India’s heavy reliance on palm oil imports, boost domestic production, and achieve up to 50% self-sufficiency by 2047, potentially saving trillions of dollars in import costs while enhancing farmer income and environmental sustainability.

India, the world’s largest importer of palm oil, sourced 8.9 million metric tonnes (mmt) in 2023— accounting for 21% of the global imports—while the domestic output met less than 5% of the demand. With the projected vegetable oil demand reaching 66.8 mmt by 2047, driven by rising incomes, urbanisation and growing reliance on processed and packaged foods, the white paper warns of a potential 40 mmt supply gap if production lags.

“India’s pursuit of self-sufficiency in edible oils is both a national imperative and a collective responsibility. Among vegetable oils, palm oil stands out for its affordability, versatility, and critical role in meeting both nutritional and industrial needs. Yet, domestic production of Palm Oil fulfils only a small fraction of our demand, leaving the nation heavy depend on its import,” said Dr B.V. Mehta, Executive Director, SEA.

The white paper highlights the potential of palm across critical pathways.

• Economic resilience: Oil palm is a highly profitable crop, delivering a Benefit-Cost Ratio (BCR) of 1.49, compared to 1.03 for rice and 1.13 for cotton. In states like Andhra Pradesh, transitioning from low-return crop cycles, such as rice-rice, rice-maize, and groundnut-based systems to oil palm can boost farmer profits by INR 30,000 to INR 1,50,000 per hectare per year.

• Multi-sectoral growth: An expanded palm oil value chain is projected to create an additional cumulative output of INR 15 trillion by 2047, creating an estimated 6.9 lakh new employment opportunities per year. These multi-sectoral opportunities hold potential to empower rural households, enhance livelihood security and drive regional economic development.

• Environmental benefits: Palm oil’s high yield per hectare translates into lower emissions per unit of oil compared to soybean, sunflower, and rapeseed oils. When cultivated on non-peatland areas — as is the case in India — emissions are among the lowest globally at 1.44 kg CO₂ per kg of oil, versus 3.45 kg for soybean and 3.32 kg for sunflower. With better land-use planning and the adoption of POME (Palm Oil Mill Effluent) methane-capture technologies, India can further minimise emissions, positioning palm oil as a climate-smart oilseed option.

• Food security: Palm oil plays a vital role in food security, particularly in developing economies. Studies from Indonesia and Costa Rica show that switching to oil palm cultivation increased household calorie intake by 13 percent and improved access to nutritious foods.

“India's push for palm oil self-sufficiency is not just about economic resilience—it’s a bet on home- grown innovation that can transform rural livelihoods and secure food security for billions,” said Dr. Shatadru Chattopadhyay, Managing Director, Solidaridad Asia.

“Beyond farms, the multipliers are vast: a robust domestic palm oil ecosystem could generate an additional INR 15 trillion in output and create nearly 7 lakh new jobs annually. For a country aiming to build resilient supply chains and inclusive growth, this is an opportunity too significant to ignore.”

To achieve the goal, the white paper suggests a five-point action plan.

1. Target high-potential areas: Expand the coverage of the National Mission on Edible Oils – Oil Palm (NMEO-OP) while simultaneously strengthening irrigation infrastructure and providing targeted support for rainfed regions, with a special focus on Northeast India.

2. Repurpose low-return lands: Approximately 16.08 million hectares (mha) of marginal rice- growing areas, identified as suitable for oil palm cultivation, can be utilised to enhance yields and overall returns.

3. Enhance productivity and efficiency in oil palm cultivation: A focused strategy is required to improve yields from the current 2.4 metric tonnes/hectare to 4-5 metric tonnes per hectare through the adoption of high-quality planting material, improved agronomic practices and timely access to critical inputs.

4. Create an enabling ecosystem for oil palm cultivation: Strategic investments in rural road connectivity, FFB collection systems, and processing facilities are required, particularly in the Northeastern states where infrastructure gaps remain a major constraint.

5. Catalyse private sector partnerships: In India, private players already play a pivotal role — owning 69 of the country’s 82 seed nurseries and operating 26 of the 32 processing mills. Strengthening public–private partnerships under NMEO-OP, enabling investments in new nurseries, expanding processing capacity and supporting technology transfer can significantly boost production while improving market access for farmers.

Speaking at the launch event, APOA chairperson Atul Chaturvedi said: “A self-reliant India is critical for the development of the region. The white paper illustrates strong evidence of south-south cooperation, especially on key learnings from Indonesia and Malaysia on predictable returns and inclusive growth for palm smallholders.”

Among the key recommendations of the white paper are:

• Strengthen research via regional Indian Institute of Oil Palm Research (IIOPR) centers,

• Embed the India Palm Oil Sustainability (IPOS) framework into the NMEO-OP to mandate responsible production practices, traceability and certification,

• Adopt regenerative agriculture and integration of similar certification and practice-based models in India to help improve soil health, strengthen ecosystem services, build climate resilience and secure long-term crop profitability while contributing to the social and economic well-being of farming communities and workers,

• Encourage public-private partnerships to accelerate investments in nurseries, mills, and Centres of Excellence (CoEs) for training, input distribution, and mechanisation services

• The successful integration of smallholder farmers into value chains is critical. Prioritise access to affordable credit, secure land rights and dedicated advisory services.