Advertise
India is aggressively pivoting toward self-reliance in the edible oil sector, backed by a massive Rs. 11,040-crore (approximately $1.3 billion) investment under the National Mission on Edible Oils – Oil Palm (NMEO-OP). Dubbed 'Yellow Revolution 2.0', the initiative aims to slash the country's heavy dependence on imports, which reached 16-17 million tonnes annually, costing the exchequer roughly $18.3 billion in 2024-25.
The government has set an ambitious target to produce 25.45 million tonnes of edible oil by 2030-31, aiming to cover 72% of projected domestic demand. A critical component of this roadmap is raising crude palm oil (CPO) production to 2.8 million tonnes. The strategy leverages the superior productivity of oil palm, which yields 4-5 tonnes of oil per hectare—nearly five times that of traditional oilseeds like mustard or groundnut.
Traditionally concentrated in Andhra Pradesh and Telangana, oil palm cultivation is now expanding into the North-East frontier, including Assam and Tripura. In the 2025-26 period alone, India saw a national expansion of over 52,000 hectares, with Andhra Pradesh maintaining its lead by contributing 83% of total domestic CPO production. To mitigate the long four-year gestation period of the crop, farmers are successfully utilizing intercropping techniques with maize, groundnut, and cocoa to ensure interim financial viability.
Industry giants such as Godrej Agrovet Ltd and Patanjali Foods are driving the expansion through farmer partnerships. Godrej Agrovet, the nation's largest processor, aims to nearly double its footprint to 150,000 hectares. To stabilize the sector, the government has implemented a unique twin-pricing mechanism, providing 'viability gap payments' to farmers when market rates fall below fixed benchmarks. This policy stability, combined with investments in modern processing mills, is designed to support the 20-year lifecycle of palm plantations and secure India's long-term food security.
Source: TradingView