India palm oil output to triple in 6 years as farmers plant more, says Agrovet exec

Godrej Agrovet

20/09/2024 06:21

By Rajendra Jadhav
       MUMBAI, Sept 20 (Reuters) - India's palm oil production
is likely to triple in six years as the area under oil palm
plantations increases and as plantations  become mature for
harvesting, a senior industry official said on Friday. 
    The world's biggest edible oil importer relies on Indonesia,
Malaysia and Thailand for palm oil supplies. An increase in
production will help India slash edible oil imports that account
for nearly two-thirds of its total consumption. 
    India's palm oil production is likely to jump to 1.2 to 1.5
million metric tons by 2030-31 from the current 400,000 tons, as
farmers have been expanding the area, said Sougata Niyogi, chief
executive officer of the oil palm plantation division at India's
biggest palm oil producer, Godrej Agrovet Ltd  GODE.NS .
    Oil palm trees start yielding fruit 3-4 years after
planting, with yields increasing significantly at around 6
years.
    The oil palm area has been rising at a rapid pace since New
Delhi started providing incentives to farmers from 2021 to curb
vegetable oil imports, which cost it $15 billion in the last
fiscal year.
    The area under oil palm cultivation increased to 375,000
hectares (926,600 acres) by last year, and an additional 80,000
to 100,000 hectares is likely to be added this year, Niyogi told
Reuters on the sidelines of the Globoil India conference.
    "Government policies are helping farmers expand their
planting areas. The new plantations should be ready for harvest
by 2030-31, and that's when we'll see a big jump in production,"
he said.
    India currently imports around 16 million tons of vegetable
oils per annum, including 9 to 10 million tons of palm oil,
mainly from Indonesia, Malaysia and Thailand. 
    Godrej Agrovet expects its palm oil production to double to
250,000 tons by 2030-31, Niyogi said.
    Two years ago, there was a shortage of sprouts, which India
imports to produce seedlings, but now enough sprouts are
available to accelerate oil palm planting, he said. 

 (Reporting by Rajendra Jadhav; Editing by Muralikumar
Anantharaman)
 ((rajendra.jadhav@thomsonreuters.com; +91-22-68414378 ; Reuters
Messaging: rajendra.jadhav.thomsonreuters.com@reuters.net))