Indonesia’s palm oil curbs could open the door for India to step up

Indonesia has extended its export ban on palm oil mill effluent (POME) and used cooking oil, to boost its own biodiesel and sustainable aviation fuel plans. It has also announced plans to centralise crude palm oil exports through a state-owned company. These steps show Indonesia tightening control over global palm oil supply.

This is a chance for India to grow its own palm oil production and reduce dependence on imports. This would protect India from price swings in the global market and reduce the import bill.

India launched the National Mission on Edible Oils-Oil Palm (NMEO-OP) in 2021. The goal was to bring 6.5 lakh hectares under oil palm cultivation by 2025-26. As of March 2026, India had reached 6.4 lakh hectares. Palm oil output is expected to triple to 1.5 million metric tonnes by 2030-31, once young plantations start yielding fruit.

Some say India’s climate does not suit oil palm. This is not accurate. Southern India, especially Andhra Pradesh and Telangana, has the right conditions with proper irrigation. These two states already produce 98% of India’s palm oil. Farmers there have seen their incomes triple after switching to oil palm.

Palm oil cultivation has a poor environmental reputation because of deforestation in Indonesia and Malaysia. But India’s oil palm expansion is different. New plantations are being planted on degraded or low-yield farmland, not on forest land. Oil palm also produces more oil per hectare than crops like soybean or sunflower, so it needs less land overall.

Oil palm plantations can also absorb carbon dioxide from the air. Palm oil by-products can be used to make biodiesel, cutting India’s diesel imports and emissions. Godrej Agrovet plans to produce compressed biogas from POME, which can replace natural gas in vehicles, cooking stoves, and electricity generation.

Oil palm grown with drip irrigation also uses less water than crops like rice or sugarcane.

In short, Indonesia’s export curbs are not a threat to India. They are a chance for India to become self-sufficient in edible oil, meet its sustainability goals, and improve farmer incomes.

• Burjis Godrej, Chairperson Designate of Godrej Agrovet