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Palm oil industry in India

make resume for jobIndia imports nearly 70% of edible oil out of which nearly two-third constitutes Palm oil.

Palm oil industry suffers in India from various bottlenecks.

  • The basic concern in lack of availability of land for cultivation purposes.
  • Another issue is the threat to biodiversity and deforestation (pushing back our commitments in an international environmental initiative like Paris Pact.)
  • Other social disturbance like resettlement of people and related agitation in order to attain land.
  • Poor technological advancements and redundant technologies used decreasing efficiency.
  • The poor political will to create the required infrastructure and collection center’s.
  • Lack of channelizing of credit in the industry also discriminative farmers to grow palms.
  • Not viable for small and marginal farmers to grow due to market fluctuations – therefore restricted to big company

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In order to iron out the difficulties, the following steps can be taken

  • the increased political will to reduce the import dependence by increasing the domestic production of palm oil (e.g. national Mission on Oil seeds and Oil palm(NMOOP))
  • Availability of ample lands using wastelands to increase productivity.
  • Focus on environmentally and socially sustainable palm oil industry land pooling can be done with loss deforestation.
  • Increased budgetary allocation for research and development and technologies for industry.
  • Ample collection center’s using hub and spokes model of Mega Food Parks.
  • Adequate credit and support through converging schemes like “Uber for tractor” App for inputs.

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Concentrated efforts of stakeholders are required to strengthen the industry as it can have multiple benefits like decreased imports, increased employment and doubling farmers income.

NABARD 2019

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