In India, our domestic production of edible oils (12.7 million tonnes) during the oil year 2023-24 (Nov’23- Oct’24) falls far short of the country’s consumption requirement (more than 28 million tonnes) during the corresponding period. The traditional oil seeds are grown on about 30 million hectares (ha) in India with a total production of 42.8 million tonnes (estimated). This translates to an average productivity of oil seeds of 1.42 tonnes per ha per year. Oilseeds account for 13 per cent of gross cropped area and around 10 per cent of the total value of output from all agricultural commodities. The Indian demand–supply gap in edible oils is widening. The foreign exchange outgo for purchasing edible oils (as essential commodity) is around $15.96 billion during the oil year 2023-24.
If India wants to produce as much edible oil as it is consuming through its traditionally grown oil seeds, the country will need at least 30 million ha under cultivation, and this is impossible to achieve (ref. only palm oil can help India achieve self-sufficiency in edible oil- Ashok Gulati). Value-added crops such as oil palm (OP) should be continued, and grown sustainably and extensively through crop conversion in agricultural field.
As of FY2024- 25, India produced around 0.45 million tonnes of crude palm oil (CPO) tentatively and is expected to increase to more than 1. 2 million tonnes by FY2030-31. The problem that holds back the quick expansion of OP cultivation and its productivity is mainly high capital investment, which is a roadblock. There is a huge mental block too for small farmers, since they believe any change would be recipe for disaster, so far crop conversion is concerned.
Matter really matters
Bringing the area under OP cultivation aggressively through farmers is not only important, but also focusing on large-scale area expansion effectively with assured and sufficient irrigation source, smart agricultural practices, etc. Improving the productivity of OP fresh fruit bunches (FFB) per ha, irrespective of the age of the crop (from the 4th year onwards till maturity) is another important area of concern. Potassium is the most critical nutrient in improving crop yield. It is applied through Muriate of Potash (MOP). Unfortunately, the required doses of potash are not applied by OP growers because it is expensive. On the other hand, OP growers use excess N-based fertiliser, leading to excessive vegetative growth at the cost of fruiting (excessive leaf growth resulting in mutual shading between palms and within the palm). This excess application of nitrogen weakens the plant system and ground water gets contaminated.
The Government of India has explored Universal Soil Health Card, which promotes balanced use of fertilisers and accelerated micro-irrigation for enhancement of productivity and thereby reduces the cost of cultivation.
Action required
Pricing and subsidy policy encourage farmers to apply the right doses of N, P , K and Mg at the right time (Ref. Potash, the neglected nutrient in Indian agriculture- Sachchida Nand) and help in improving crop yield, soil health and environment. The government and OP developers-cum-processors jointly should ensure that effective area expansion takes place across India rather than becoming aggressive in area expansion alone, and self-auditing towards assessment of effective area under cultivation by individual companies in their operating areas is good for the future and enables the companies to take judicious calls for investment and measures to improve. Cultivating OP in community land (if any, in North East) is not a bad practice. Its impact depends on the adoption of sustainable principles and good management practices, other than governance.
Of course, the OP Industry strives to remain updated on sustainable palm oil concepts and usage of state-of-the-art agricultural practices, enhance economic upliftment of the society and improve biodiversity.
(The author is former CEO- Oil Palm Plantation , Godrej Agrovet Ltd., views are personal)
Published on April 5, 2025
