[Answered] Highlight the challenges India is facing in securing stable supply of palm oil. Also, suggest some measures for achieving self-sufficiency in the production of palm oil?

India is the world’s biggest vegetable oils importer. Indonesia has been India’s top supplier of palm oil, though it was overtaken by Malaysia in 2021-22. India consumes 10 per cent of the total global production of palm oil, with the consumption significantly exceeding domestic production.

Challenges:

• Reliance on imports: Since domestic production is not sufficient to meet the demand, India imports around 9 million tonnes of palm oil annually.
• Long gestation period: For an economy like India, where the majority of people are dependent on agriculture, the large-scale adoption of palm oil cultivation can have a huge impact on the economic security of farmers.
• Unsustainable production: It is responsible for environmental degradation, biodiversity loss and deforestation of tropical rainforest that is threatening iconic species like orangutans with extinction.
• The competition from other economically viable crops such as rubber, sugarcane, coconut etc.
• The small land-holdings of farmers with limited resources and erratic monsoon lead to the shortage of water as well as trigger the conversion of forests being turned into palm oil plantations.
• Volatile market due to fluctuation in prices and lack of private investment.

How can India be self-sufficient in palm oil production?

• As the largest importer, India is well positioned to drive the demand for sustainable palm oil.
• The need for a simple supply chain is needed. The signing of the ASEAN-India Trade in Goods Agreement paves the way for the creation of one of the world’s largest FTAs and it can be used to set a high bar for the import of risk palm oil into India.
• If the government mandates responsibly sourcing from Indonesia and Malaysia, it also takes a leadership position driving responsible consumption within Asia.
• The Act East Policy demonstrates India’s close ties with the palm oil-producing countries.
• Cooperation between non-profits as well as industry-led coalitions.
• Creating awareness of palm oil production links to environmental and social challenges in the producing geographies of Indonesia and Malaysia.

Palm oil lies at the core of India’s edible oil market owing to its low prices and the country’s need for food security. In this regard, the Government has launched the National Mission on Edible Oils-Oil Palm which aims at increasing the total area under oil palm from the current 3.5 lakh hectares (lh) to 10 lh by 2025-26. Palm oil can be produced in a responsible manner that does not damage the environment and is beneficial to communities.