Oleochem Analytics — India has allocated 110 billion rupees ($1.48 billion) to increase domestic palm oil production to 2.8 million tons by 2029-30 through the recently approved National Mission on Edible Oils – Oil Palm (NMEO-OP), Agriculture & Farmers Welfare Minister Narendra Modi said on August 18.
Through the implementation of the NMEO-OP, the government will support small farmers to expand areas under oil palm cultivation to 1 million hectares from the current 350,000 Ha, as well as to increase its domestic productivity, he said.
The government’s plan is to cover an additional area of 60,000 Ha for oil palm till the year 2025-26 and thereby reaching the target of 1 million hectares ultimately. The production of Crude Palm Oil (CPO) is expected to go up to 1.12 million tons by 2025-26 and up to 2.8 million tons by 2029-30.
“The government will invest more than 110 billion rupees via the NMEO-OP to provide farmers everything possible, including better seeds and technology,” Modi said on Twitter.
Modi added that “due to the heavy dependence on imports for edible oils, it is important to make efforts for increasing the domestic production of edible oils in which increasing area and productivity of oil palm plays an important part”.
According to the statement published by the Indian government, around 98% of India’s CPO is being currently imported.
India is the world’s largest importer of palm oil, accounting for approximately 34% of 2020 global CPO imports, according to the UN World Integrated Trade Solution.