Oilpalm is used in commercial agriculture in the production of palm oil which is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of the oil palms. Oil palm cultivation assumes significance for augmenting the indigenous availability of edible oil as it is the highest oil yielding perennial crop with 4-5 MT of palm oil and 0.4-0.5 MT palm kernel oil (PKO) per Ha. In comparative terms, yield of palm oil is 5 times the yield of edible oil obtainable from traditional oilseeds.
This perennial crop has an economic life span of 30 years. Nearly 70 percent of palm oil is used in foods like chocolate and ice cream, bread and potato chips. At the same time, industrial uses, including the production of bio fuels and cosmetics, is constantly expanding and now accounts for nearly 30 percent of total consumption.
Global Edible Oil Scenario:
The world edible oil production over last 4 years from 2017-18 to 2020-21 has increased by 4.87% to 199.33 MMT of which Palm Oil is the major edible oil produced in the world and accounts for 36.71% (73.17 MMT) followed by soybean oil which accounts for 30.32% (60.44 MMT) of the world edible oil production in 2020-21. The total edible oil production is estimated to increase by 4.07% to 207.44 MMT in 2021-22.
The world edible oil production over last 4 years from 2017-18 to 2020-21 has increased by 4.87% to 199.33 MMT of which Palm Oil is the major edible oil produced in the world and accounts for 36.71% (73.17 MMT) followed by soybean oil which accounts for 30.32% (60.44 MMT) of the world edible oil production in 2020-21. The total edible oil production is estimated to increase by 4.07% to 207.44 MMT in 2021-22.
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Palm Oil has the best land use efficiency compared to other edible oils produced in the world at 3.13 MT per Ha Vs 0.47 MT per Ha of Soy Oil. It has less land usage. |
Indian Edible Oil Scenario:
The consumption of edible oil in India is at 23.46 MMT with a per capita consumption of 16 kg/ person, India’s edible oil production stands at 8.97 MMT in 2020-21 and it is assumed that the consumption may touch 30 million ton by 2025. The deficit of 14.49 MMT of edible oil is being met through imports from Indonesia, Malaysia, Singapore and Thailand (ITC Trade map) spending huge foreign exchange. Out of the total imports, Palm oil accounts for 58.03% i.e., 8.45 MMT of the total imports of 14.49 MMT in 2020-21.
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We are still only a minute portion in terms of Palm Oil in the total edible oil production in India. India is dominated by Mustard oil production (2.85 MMT) followed by Soybean Oil (1.69 MMT), Cotton Oil (1.41 MMT), Groundnut Oil (1.28 MMT), Palm Oil (0.24 MMT) in 2020-21. |
Overview of Palm Oil Industry:
Palm oil is one of nine major oils traded in the global edible oil and fat market. At present, it is the largest source of vegetable oil in the world. The world Oil palm area is 241.34 lakh Ha and production is 731.68 lakh MT during 2020 (USDA). Five countries mainly Indonesia, Malaysia, Nigeria, Thailand and Columbia account for over 90% of the world’s total production of FFBs. Small amount of oil palm areas are grown in many countries, but the global market is dominated by only two countries i.e., Indonesia (119.50 lakh Ha/435 lakh MTs and Malaysia (54 lakh Ha.,/185 lakh MTs) during 2020 (USDA). Together Indonesia and Malaysia account for over 85% to 90% of world production of Crude Palm Oil. With regard to Palm Oil consumption globally, Indonesia stands 1st in consumption with 150.25 lakh MTs per annum followed by India with 87.55 lakh MTs per annum during 2020 (USDA). The details of major countries consuming Palm Oil as detailed:
| Sl. No. | Country |
Palm Oil Consumption (Lakh MT) in 2020 |
| 1 | Indonesia | 150.25 |
| 2 | India | 87.55 |
| 3 | China | 67.8 |
| 4 | EU-27 | 68.05 |
| 5 | Malaysia | 34.35 |
| 6 | Pakistan | 34 |
| 7 | Thailand | 22.27 |
| 8 | Bangladesh | 16.1 |
| 9 | United States | 13.96 |
| 10 | Nigeria | 16.65 |
| The major Palm Oil importing countries are India, China, European Union, Pakistan, USA & Bangladesh and India is the major palm oil importing country @ 16.29% of world share (USDA). |
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Oil Palm Cultivation - India:
Oil palm was introduced to India at National Royal Botanical Gardens, Kolkata during the year 1886. The Maharashtra Association for Cultivation of Sciences (MACS), Pune later introduced African dura palms along canal bunds, home gardens and, to some extent, in forest lands near Pune during 1947 to 1959. Large scale planting of oil palm was launched from 1971 to 1984 in Kerala by Plantation Corporation of Kerala Ltd. (subsequently taken over by Oil Palm India Ltd.) and Andaman Forest and Plantation Development Corporation Ltd., in Andaman and Nicobar Islands during 1976 to 1985. Oil palm, as a small holders’ crop under irrigated conditions grown under varied agro-climatic conditions, is totally new to India.
In the last two decades, down trend is observed in consumption of edible oils like mustard, ground nut and other vegetable oils whereas the consumption of palm Oil is increased by 6.99% as shown below:
| India's Edible oil consumption profile (Lakh tonnes) | |||
| Oil | 2001-02 | 2020-21 | % of increase/decrease in consumption |
| Palm | 29.44 (33.12%) | 87.55 (40.11%) | 6.99 |
| Soyabean | 22.58 (25.39%) | 53.27 (24.41%) | -0.98 |
| Sunflower | 3.09 (3.48%) | 24.50 (11.22%) | 7.74 |
| Mustard | 17.21 (19.36%) | 26.80 (12.28) | -7.08 |
| Cottonseed | 4.43 (4.98%) | 14.05 (6.44%) | 1.46 |
| Groundnut | 12.16 (13.67%) | 12.10 (5.54%) | -8.13 |
| Total | 88.91 (100.0%) | 218.27 (100%) | |
Oil palm has been established as a successful crop in a number of states in the country and at present, the area under oil palm cultivation is 8.85lakh ac., with Crude Palm Oil production of 2.82 lakh MTs against the requirement of 87.55 lakh MT. About of 90 to 100 lakh MTs of Crude Palm Oil and Olein is being imported from other countries. To attain self-sufficiency under Oil palm in India, an additional area of 70 lakh acres is required. The total potential area of Reassessment Committee 2020 is about 70 lakh acres.
The major oil palm producing states in India are Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Gujarat, Chhattisgarh, Mizoram, Assam and Orissa. Andhra Pradesh ranks 1st in Area and Production of Oil Palm in the country. Telangana stands 6th in Oil palm area, 2nd in production of Fresh Fruit Bunches and 1st in Oil Extraction Rate (OER) with 19.22 % (2019-20) in the country.
Oil palm cultivation assumes significance for augmenting the indigenous availability of edible oil as it is the highest oil yielding perennial crop. With good planting material, irrigation and proper management, there is a potential of 20-25 MT fresh fruit bunches (FFB) per hectare after attaining the age of 5 years. This in turn is capable of yielding 4-5 MT of palm oil and 0.4-0.5 MT palm kernel oil (PKO). In comparative terms, yield of palm oil is 5 times the yield of edible oil obtainable from traditional oilseeds. This perennial crop has an economic life span of plant 30 years, comprising three distinct phase viz. juvenile period (1-3 years), stabilizing period (4-8 years) and stabilized period (9-30 years)
Oil Palm Scenario in Telangana:
The Committees constituted by Government of India up to 2006 have identified a total potential area of 10.36 lakh ha for Oil palm cultivation in India, out of which an area of 4.00 lakh ha is identified in erstwhile Andhra Pradesh. The Government of India have constituted a committee for assessment of additional potential area for oil palm cultivation in India under the Chairmanship of Dr. P. Rethinam and in the year 2012, the committee has identified 19.33 lakh ha (including the earlier identified area) as area suitable for oil palm cultivation in (18) states of the country including an area of 4.69 lakh Ha., in erstwhile Andhra Pradesh. Up to 2012, an area of 50,000 Ha was identified in erstwhile Khammam (20,000 ha) and Nalgonda (30,000 ha) Districts.
In 2019, a re-assessment committee was constituted under the chairman ship of Dr. B.M.C Reddy to re-assess the potential Oil palm area in the country including newly formed Telangana State. Subsequently, the Government of India has notified an additional potential area in Telangana State during 2020 for area expansion of oil palm. With this the total area so far notified in Telangana State comes to 4.36 lakh ha.
As of now, about 61000 (Of which 37000 acres is under bearing age) is under oil palm cultivation in Telangana, spread across the districts of Khammam, Bhadradri Kothagudem, Nalgonda and Suryapet. Up to 2020 three companies were operating in Telangana viz., TS Oil fed, Godrej Agrovet and Ruchi Soya Industries Limited. Two processing plants of TS Oilfed are in Dammapet and Ashwaraopet mandals of Bhadradri Kothagudem.
The Government of Telangana have allotted factory zones to companies to take up Oil palm Area expansion in the newly identified potential areas in the state by GOI. With this a total of (11) companies are now operating in Telangana including the existing (3) companies. Nurseries are being established in new districts/factory zones by the allotted companies.
Oil palm cultivation and processing in Telangana is regulated through the Telangana oil palm (regulation of production and processing) Act, 1993. The act mandates all harvest to be necessarily procured by allotted companies in a zone at minimum prices determined by state government. The act envisages the constitution of Advisory Committee and Zonal Committees for the orderly development of oil palm cultivation and industry in the state
Raising of Nursery to Extraction of Crude Palm Oil
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