Palm Oil Farming: Benefits & Associated Risks

Edible oils are a critical component of an Indian kitchen. India produced 43.10 million tonnes of edible oilseeds in 2020-21, which is estimated to increase to 45 million tonnes in 2021-22. It is estimated that total annual demand of edible oil in India stands at 26 million tonnes. Only 40% of this demand is met through domestic production and remaining 60% is imported. Palm oil accounts for more than 60% of total import of edible oil, which is primarily sourced from Southeast Asia. Cultivation of palm oil assumes significance in the context of food and nutrition security of India.

About Oil Palm

Palm oil is a tropical tree, which produces high-quality oil used mainly in cooking in developing countries. It is the highest edible oil yielding plant in the world. It is a plantation crop that is mainly grown by clearing tropical forests and other ecosystems in the tropical region. Oil palm trees are native to Africa (naturally found in Africa) but were brought to South-East Asia just over 100 years ago as an ornamental tree crop. Now, Indonesia and Malaysia make up over 85% of global supply but there are 42 other countries that also produce palm oil.

• Palm oil is semi-solid at room temperature so can keep spreads spreadable; it is resistant to oxidation so can give products a longer shelf-life; it’s stable at high temperatures.

Oil Palm Cultivation in India

India is one of the major consumers of Edible Oil in the world.A wide range of oilseeds crops are grown in different agro-climatic regions of India. Traditionally Groundnut, mustard, rapeseed, sesame, safflower, linseed, nigerseed, castor are major oilseeds cultivated in the country. Coconut, Soyabean and sunflower are also assuming importance with rising demands in recent years.

• Oil Palm cultivation is spread in India in an area of about 349,000 hectares in 16 states. Andhra Pradesh and Telangana together account for more than 97% of crude palm oil production in the country. Total palm oil potential area in India is about 1.93 million hectares in 19 states, including the Northeastern states of Assam, Mizoram and Arunachal Pradesh.
• According to estimates, India spends over $10 billion on imports of edible oil every year. It is highly dependent upon Palm Oil imports from Indonesia and Malaysia.

Benefits of Palm Oil Cultivation

Palm cultivation is more efficient as compared to other varieties of edible oil. Around 4-5 tonnes of crude palm oil can be obtained from one hectare of land.

• It is a perennial crop and therefore provides assured income throughout the year. The cost of cultivation is significantly less as compared to other edible oils.
• It can be grown under various soils and climatic conditions prevalent in the agricultural regions of India.
• It is a hardy crop and has the ability to withstand adverse climatic conditions, which also makes it suitable for cultivation in the drought prone regions.
• Increasing the oil palm cultivation will reduce India’s dependence upon edible oil imports and save significant foreign exchange.
• Palm leaf can also be used as a fodder, organic fertilizer and firewood, thus augmenting the incomes of farmers. Pest and Disease incidence is also low, which saves input costs in the form of insecticides and weedicides.
• Inter cropping can be effectively practiced with oil palm plantations in the pre bearing period, thereby diversifying the risks of farmers.

Risks with Oil Palm Cultivation

Oil palm has a long gestation period which restricts income flow to farmers for at least 4-5 years.

• It is a water guzzling crop, which leads to erosion of surface as well as groundwater resources, increasing water stress.
• It requires high amounts of chemical fertilisers, which leads to pollution of soil and water resources.
• It is harmful to Biodiversity as oil Palms are planted by clearing Tropical Forests, which houses about 80% of world’s documented species. For e.g. A third of all mammal species in Indonesia are considered to be critically endangered as a consequence of unsustainable plantation of Oil Palm.
• Deforestation in tropical forests also disrupts essential ecosystem services like the provision of clean drinking water and oxygen recycling.
• Commercial Plantations promote monoculture practices, which destroys critical habitats of many faunal species, including microorganisms.
• Expansion of plantations on tropical lands will also lead to forceful eviction of traditional forest dwelling communities.

Plantations of Oil Palm have high potential for reducing import dependence, improving the nutritional security, providing local employment, and making India self-reliant in edible oil production.

However detrimental effects of plantation of Oil Palm cannot be neglected. The government has started the National Mission on Edible Oils for Oil Palm, with an objective to increase cultivation of Oil palm to 10 lakh hectares by 2025-26. A sturdy long term implementation mechanism will ensure the success of the same.