India, the world’s largest importer of edible oils, relies heavily on palm oil to meet domestic demand. In FY2023, India imported around 8.4 million tonnes of palm oil, accounting for more than 55% of its total edible oil imports, primarily from Indonesia and Malaysia. This dependency strains foreign exchange reserves, makes domestic prices vulnerable to global fluctuations, and underscores the need for self-reliance. Recognizing this, the Government of India launched the National Mission on Edible Oils – Oil Palm (NMEO-OP)—a game-changing initiative aimed at transforming India into a producer, not just a consumer, of palm oil.

The NMEO-OP, launched in August 2021, is designed to significantly scale up domestic palm oil production by encouraging oil palm cultivation in agro-climatically suitable regions. The mission targets 6.5 lakh hectares of new oil palm plantation by 2025–26, with the aim to produce over 11 lakh metric tonnes of crude palm oil (CPO) annually. This comprehensive effort includes support for farmers through planting subsidies, assured pricing via the viability gap funding mechanism, investment in irrigation and inputs, and incentives for private players to set up mills and nurseries.

Unlike short-cycle crops, oil palm provides long-term yield, producing fruit for over two decades. This makes it both a sustainable source of income for farmers and a reliable domestic input for India’s edible oil needs.

Palm oil is the world’s most productive oilseed crop, yielding 4 to 5 tonnes of oil per hectare, far surpassing soy or sunflower. From an economic perspective, this translates to much higher income per acre for farmers, provided they are supported with timely inputs, scientific know-how, and fair procurement systems.

At a national scale, increasing domestic production of palm oil can reduce India’s edible oil import bill, which stood at ₹1.57 lakh crore in FY2023, according to data from the Ministry of Consumer Affairs. By localizing production, India can strengthen its agricultural economy, reduce forex outflow, and ensure that more value addition—from cultivation to processing—takes place within its borders. Furthermore, oil palm expansion in regions like the Northeast and Andaman & Nicobar Islands provides income opportunities in underdeveloped areas, fuelling balanced regional development.

3F Oil Palm is one of the key private players aligned with the goals of NMEO-OP. With years of expertise across the palm oil value chain, 3FOP works closely with farmers in states like Andhra Pradesh, Telangana, Karnataka, Arunachal Pradesh, Assam and Chhattisgarh—providing high-yielding planting materials, agronomic support, and timely procurement through a buyback model.

The company has also invested in a farm to fork value chain through world-class oil palm processing units, refineries, power plants while maintaining quality and traceability. 3FOP’s integrated approach not only improves productivity but also ensures that farmers benefit from price stability and predictable market access—both crucial for long-term adoption.

India’s palm oil journey is at a turning point. With a clear policy push through the NMEO-OP and strong participation from forward-looking companies like 3F Oil Palm, the country is steadily progressing toward reducing its dependency on imports and building a robust domestic ecosystem. This mission is not just about oil—it’s about economic sovereignty, rural prosperity, and long-term agricultural resilience. The path to self-reliance is unfolding, and palm oil is at the heart of it.

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