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Belvinder Sron, Chief Executive of the Malaysian Palm Oil Council (MPOC), says India is on the verge of a "palm oil revolution", driven by the National Mission on Edible Oils – Oil Palm (NMEO-OP), which is pushing the country to shift from an import-dependent nation to a major global exporter.
Amid global geopolitical and economic shifts, economic resilience has become a top priority for governments seeking to bolster domestic industries and shield their economies from supply chain disruptions, price volatility and crises such as wars and pandemics. This trend aligns with India's "self-reliant India" (Atmanirbhar Bharat) initiative, which aims to serve the domestic population and support the national economy.
Among the key sectors where India is focused on achieving self-sufficiency is vegetable oil production, with palm oil at the forefront. Oils and pulses make up the bulk of India's agricultural imports, and palm oil alone accounts for more than half of the country's oil imports, making it a strategic pillar of its self-sufficiency plans.
Since its launch in August 2021, the NMEO-OP mission has laid out a clear roadmap for sustainable and continuous oil palm cultivation. The strategy involves integrating oil palm cultivation into India's farming system by preserving and diversifying existing crops, expanding into underutilised land and seasonal rice paddies, and improving productivity through improved seeds and modern agricultural technologies.
India has already earmarked vast areas for oil palm cultivation, targeting profitability, higher farmer incomes and environmental conservation — three key elements that underpinned the success of palm oil producing nations such as Malaysia.
India's vision extends beyond cultivation to industry and exports. A 2024 report by NITI Aayog recommended strengthening cooperation with the private sector in areas such as technology, marketing, seed production and processing. The report also emphasised the importance of coordination between government agencies, farmer cooperatives, local NGOs and the private sector to achieve sustainable production.
For Malaysia, the NMEO-OP initiative presents an opportunity to share its expertise with India in cultivation, processing and sustainable practices. Malaysia's palm oil industry is a key contributor to the national economy, accounting for around 3% of GDP, employing more than a million workers, and supporting about 450,000 smallholder families.
The industry generates around $20 billion in exports annually and about $4 billion in tax revenue. It also produces $3.5 billion worth of products and serves 4 million customers worldwide.
Fruit yield remains an area where India has room to improve, as it still lags behind Malaysia. Closing this gap could be achieved through Malaysian cultivation techniques and improved seed varieties.
As oil palm cultivation expands, sustainability remains a central concern. The sector faces growing environmental pressures globally, and India has an opportunity to adopt sustainable practices from the outset. Malaysia has developed the Malaysian Sustainable Palm Oil (MSPO) certification scheme to ensure compliance with environmental standards. The scheme now covers 84% of the country's planted area, involves around 300,000 smallholders, and aligns with the United Nations Sustainable Development Goals.
Malaysia has long been one of the world's leading palm oil exporters, making a significant contribution to global food security. India appears to have the fundamentals needed to replicate — and even expand upon — this model, thanks to its abundant land, government support and robust regulatory framework.
However, long-term success will require efficient infrastructure, strategic global partnerships and a firm commitment to sustainability.
As the world faces mounting food security challenges, India's rise as a palm oil exporter could strengthen global supply chains, stabilise prices and encourage sustainable agriculture. Malaysia, meanwhile, will continue to play its part as a partner in supporting India's edible oils and fats needs.
Source: Al Mal Forum