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Resource centre on India's rural distress
 
 

Why India doesn’t need palm oil but its greener alternatives -Bhavani RV and RS Vaidyanathan

-Down to Earth blog

Palm oil is water-intensive and requires large patches of land

India is the second-largest consumer of edible oil globally and its largest importer. While the government has taken several initiatives over the years to increase the domestic production of edible oils, its shortage and high price are often in the news.

Palm oil production grew between 2015-2016 and 2020-2021 at a compound annual growth rate of 6.1 per cent, as reported in the Economic Survey 2021-2022.

We, however, continue to import around 60 per cent of our edible oil requirement. More than half of this is palm oil, primarily from Malaysia and Indonesia, followed by soybean and sunflower oils. It is projected that the imports will continue to grow. 

Yield levels in India are usually lower than the global average. The decade of the 1980s saw a series of Technology Missions (TM) to increase productivity, including a TM on oilseeds.

Rising demand for edible oil, insufficient use of technology for optimum oil extraction and rising import bills for edible oil were among the main reasons for a TM on oilseeds.

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