Indian government eyes Palm Oil production by spending ₹10,000cr ($1.5bn) to reduce imports

Indian government is planning to spend ₹10,000 over next 3 years by helping farmers for palm cultivation. The government has identified nine states in the country with suitable climate for palm tree plantation. India’s import of edible oils has trebled in last 20 years making India import dependent.

Currently, edible oil imports estimated at $10bn, third highest after crude oil and gold imports for India. India is the largest importer of edible oils with about 14.4 tonnes million per year while palm oil account about 80% of total edible oil imports.

Prime Minister Narendra Modi has set a target to make India self-sufficient in edible oils with a timeline of next 10 years. The move by India to focus on increasing production of palm oil domestically could adversely affect Malaysia and Indonesia who are major grower of palm trees.