Lang
Malaysia’s Sawit Kinabalu Group said on Tuesday that it supplied Indian consumer goods company Patanjali with 1.5 million oil palm seeds under a five-year contract ending in 2027.
Malaysia is one of the largest palm oil suppliers to India, but this is the first time a government-linked agency has signed a contract to supply oil palm seeds.
The move comes as India encourages domestic oil palm cultivation to reduce dependence on imports.
The contract was signed by Sawit Kinabalu’s seed division, which has an annual processing capacity of 10 million oil palm seeds.
Zorini, general manager of the group’s seed unit, said: “We have a five-year contract with Patanjali Group to supply 4 million oil palm seeds, and we have delivered 1.5 million seeds so far.”
In addition to supplying seeds, the company provides consultancy services, field visits by agricultural experts, and follow-up on mortality rates among planted seedlings.
Nazlan Mohammed, the group’s sustainability director, said the seeds planted in India are achieving better productivity and that plants grown in northeast India are in good condition.
With the Malaysian government providing financial support for oil palm replanting in some areas, Mohammed said the government agency has had to limit seed supply volumes to India in order to meet domestic demand.
Nevertheless, he said the agency is keen to cooperate with more Indian companies to supply oil palm seeds.
Patanjali Group plans to establish a palm oil mill in northeast India, expected to begin operation by 2026.
India currently has around 369,000 hectares planted with oil palm, of which about 180,000 hectares are in the fruit-bearing stage.
The planted area continues to expand, reaching around 375,000 hectares by 2024, with another 80,000 to 100,000 hectares expected to be added in the near term.
The government aims to expand oil palm cultivation to 1 million hectares by 2025–2026 and then to 6.6 million hectares by 2030, with the goal of producing 2.8 million tonnes of palm oil.
The National Mission on Edible Oils – Oil Palm (NMEO-OP), launched in 2021–2022, is the central government’s main program to promote oil palm cultivation, with a special focus on northeast India and the Andaman and Nicobar Islands.
Andhra Pradesh, Telangana, and Kerala account for 98% of India’s palm oil production.