Oil Palm Scenario in India

Oilseeds Division
DAC&FW, Krishi Bhavan
 OIL PALM
Oil Palm- Elaeis guineensis (African oil palm)
Elaeis oleifera (American oil palm)
Economic Cropping period : 25-30 years
First Harvest : After 4 years
Yield of FFBs/ha/Yr. : 15-30 tonnes
Sources of Oil:
(i) Mesocarp : (4-6 tons CPO/ha/annum)
(ii) Kernel : (0.4-0.6 tons CPKO/ha/annum)
Requirements for success oil palm plantations

• Rainfall- 150 mm per month or 2500-4000 mm

per annum.
• Temperature- Max. 29-33O C and Min. 22-24O C
• Humidity- > 80%
• Soil- Loamy Alluvial Soils rich in organic matter.
Avoid highly alkaline, highly saline, water lodged
and coastal sandy soils.
• Irrigation- 150-200 ltr. of water per day
 Different uses of Palm Oil
Food Products
Cooking Oil, Dough fat, Vanaspati
Vegetable Ghee
Margarine
Salad Oil
Chocolate/Ice-cream/ Frying fats,
Speciality fats for coatings
Coca Butter substitutes
Non Food Products
Bio fuel and Bio lubricants
Cosmetic products/Aromatherapy
Pharmaceuticals products
Toiletries, Detergents including soaps &
soap Blends
Esters
Oleo chemicals, Fatty acids & Fatty
Alcohols
 GLOBAL OIL PALM CULTIVATION
Area, Production and Yield of FFBs
(Area- Million ha, Production- Million Tonne, Yield- Metric Tonne/ha)
S. Countries 2014-15 Share in World
No. Production (%)

Area Production Yield

1. Indonesia 7.43 126.68 17.05 46.02
2. Malaysia 4.69 96.07 20.48 34.90
3. Nigeria 3.03 7.96 2.62 2.89
4. Thailand 0.68 12.43 18.17 4.52
5. Colombia 0.27 5.53 20.75 2.01
6. Ecuador 0.27 3.47 12.75 1.26
7. Papua New Guinea 0.16 2.16 13.87 0.78
8. Brazil 0.13 1.39 11.01 0.50
9. World 18.75 275.30 14.68 100.00
Sources: FAO Statics
 Palm Oil Production in the major Countries

(million MT)
Countries 2012 2013 2014 Share in World
(%)
Indonesia 26.01 26.90 29.28 50.87
Malaysia 18.78 19.22 19.67 34.17
Nigeria 0.94 0.88 0.91 1.58
Thailand 1.78 1.97 1.85 3.21
Colombia 0.97 1.04 1.11 1.93
Ecuador 0.32 0.32 0.33 0.57
Papua New Guinea 0.48 0.49 0.50 0.87
Brazil 0.31 0.34 0.37 0.64
World 52.87 54.65 57.56 100.00
Sources: FAO Statics
 Oil Palm Cultivation in India
Strength of Oil Palm
Oil palm gives highest oil yield per unit area (4-5 t oils /ha).
Could reduce dependence on import of edible oil
Provides regular and assured income to farmers
Less vulnerable to pests and diseases
Limited scope for area expansion under oilseed crops
Identified Potential area of more than 1.93 million ha.
Potential for several by-products.
Sufficient R & D Support & network of ICAR
Sufficient availability of planting materials
Support available under MM II (Oil Palm) of NMOOP
Oil Palm Cultivation in India
Weakness

 High initial capital investment

 Demands continuous irrigation
 Long gestation period (4-5 Years).
 Short shelf life of FFBs
 Influence of import on FFBs price
 Land availability
 OIL PALM CULTIVATION IN INDIA

 Introduced as an ornamental plant in Kolkata (1986)

 Commercial plantation at Thodupuza, Kerala in 40 Ha
(1960)
 Systematic plantation in Kerala in 1971 and Andaman
& Nicobar islands in 1973
 Oil Palm India Limited (OPIL) est. 1977
 OPDP started 1992-93 under TMOP
 Under ISOPOM from 2004-05 to 2013-14
 RKVY Support from 2011-12 to 2013-14
 NMOOP since 2014-15
 Support for Oil Palm under various Schemes

Period Programme
VIII-IX Plan (1992-2003) OPDP under Technology Mission
on Oilseeds & Oil Palm (TMOP)
X-XI Plan (2004-2013) Integrated Scheme on Oilseeds,
Pulses, Oil Palm & Maize
(ISOPOM)
Oil Palm Area Expansion (OPAE)
XII Plan (2014-2017) National Mission on Oilseeds and
Oil Palm (NMOOP)

11
 Potential area under oil Palm in major states
State Potential Potential area (in ha)
Area (ha)
Andhra Pradesh 469500
Karnataka 260000
Tamil Nadu 205000
Odisha
Gujarat 260250 3% Bihar West Bengal
12% 1%
Kerala
Maharastra 180000 0% Andhra Pradesh
27%
Chattishgarh 48000 Chhattisgarh
3%
Kerala 6500 Maharashtra
11%

Odisha 56000 Karnataka

Gujarat 15%
15%
Bihar 200000
West Bengal 25000 Tamil Nadu
12%
Total 17,10,250
 Potential area in NE states under oil Palm
NE States & Potential Area
Others (ha) Potential Area(in ha)

Mizoram 61000

Assam 25000

Arunachal 25000 Goa

Nagaland 1%
Andaman & NI
1%
Pradesh 22% Mizoram
27%
Tripura 7000

Meghalaya 50000
Meghalaya Assam
22% 11%
Nagaland 50000

Goa 2000 Arunachal Pradesh

Tripura 11%
3%
Andaman & NI 3000

TOTAL 223000
 State wise area and production of FFBs and CPO -2015-16
FFBs Production
State Area coverage (ha) (in MT) CPO Production (in MT)
Andhra Pradesh 1,50,530 11,44,092 1,93,562
Telangana 16,239 63,508 11,289
Karnataka 41,431 14,740 2,538
Tamil Nadu 29,510 7,810 1,222
Gujarat 5,054 523 0
Goa 953 3,217 581
Odisha 18,484 4,569 618
Tripura 530 0 0
Assam 570 0 0
Kerala 5,769 40,611 7,016
Maharashtra 1,474 0 0
Mizoram 25,741 3,753 432
Chhattisgarh 2162 0 0
Arunachal Pradesh 330 0 0
Andaman & Nicobar 1,593 0 0
Nagaland 140 0 0
Total 3,00,510 12,82,823 2,17,258
 STATES AND AGENCIES
Mini Mission States / Agencies
(MM)
MM-II Total States covered (20): Andhra Pradesh,
(Oil Palm) Chhattisgarh, Gujarat, Karnataka, Kerala, Odisha,
Tamil Nadu, Telangana, Arunachal Pradesh,
Assam, Mizoram, Nagaland, Goa, Bihar, Tripura,
Meghalaya, Manipur, Sikkim, West Bengal and
Maharashtra
Presently implementing 12 states viz; Andhra
Pradesh, Chhattisgarh, Gujarat, Karnataka,
Kerala, Odisha, Tamil Nadu, Telangana, Arunachal
Pradesh, Assam, Mizoram and Nagaland.
Agencies: Indian Institute of Oil Palm Research
(IIOPR), Pedavegi, Andhra Pradesh

15
 State-wise District covered under Oil Palm
SL. No State Nos. of Name. of District
Districts
1. Andhra Pradesh 8 East Godavari, Krishna, Nellore, Srikakulam, Vishakapatnam, Vizianagaram, West
Godavari and Ananatapur
2. Telangana 4 Nalgonda, Bhadradri, Suryapet and Khammam
3 Chattisgarh 11 Kanker, Mahasammund, Dantewada, Jagadalpur, Sukma, Durg, Balod, Raigarh, Janjgir
Champa, Bilaspur and Korba
4. Goa 2 North Goa, South Goa
5. Gujarat 11 Anand, Tapi, Narmada, Bharuch, Panchmahel, Kheda, Navasari, Surat, Vadodara, Valsad
and Chotha Udepur
6. Karnataka 23 Belagaum, Uttar Kannada, Davangere, Haveri, Bellary , Gadag, Koppal, Raichur,
chamarajnagar, Hassan, Kodagu, Mandya, Mysore, Chikmagalur, Shimoga, Bagalkote,
Bijapur, Gulbarga
7. Kerala 9 Trivandrum, Kollam, Alappuzha, Pathanamihitta, Kottaym, Ernakulam, Kozhikode,
Malappuram and Wyanadu
8. Mizoram 7 Aizwal, Kolasib, Lawngtlai, Lunglei, Mamit, Saiha and Serchhip
9. Odisha 15 Dhenkanal, Gajapati, Ganjam, Jajpur, Mayurbhanja, Balasore, Boudh, Cuttack,
Nawrangpur, Koraput, Nayagarh, Rayagada, Sonepur, Bargarh and Bhadrak,
10. Tamil Nadu 26 Trichy, Karur, Cuddalore, Peramabalur, Thanjavur, Theni, Thiruvarur, Nagapattinam,
Tirunelveli, Vellore, Villupuram, Pudukottai, Aryalur, Dindugal, Virudhnagar,
Sivagangai, Kancheepuram, Triuvallur, Tiruvannamalai, Salem, Namakkal, Dharampuri,
Krishnagiri, Coimbatore, Tiruppur and Erode
11. Nagaland 6 Dimapur, Peren, Mokokchung, Wokha, Mon and Longleng
12. Assam 3 Kamrup, Goalpara and Bongaigaon
13. Arunachal 8 Lohit, Changlang, Tirap, Lower Dibang Valley, East Siang, West Siang, L/Subansri and
Pradesh Papum Pare & East Kameng
Total 133
 Strategy : MM II (Oil Palm)
• Augmenting availability of planting materials ,
establishment of new seed garden.
• Support for maintenance during gestation period and
intercropping
• Enhancing irrigation through Drip, Pump-set, bore well,
water harvesting structure.
• Support for Oil Palm processing units for NE /Hilly/LW
states
• Demonstration of oil Palm in farmers fields
• Capacity building of field functionaries/extension
workers & farmers /input dealers
• Support for need based for research on project basis
 Progress for XIIth Five Year Plan
Year Name of Oil Palm Area Expansion Amount (Rs. in lakh)
Scheme (ha)
Target Achievement Allocation Release

2012-13 ISOPOM & OPAE 49932 26300 22705.74 6412.62

2013-14 ISOPOM & OPAE 41347 23183 19776.19 11849.09
2014-15 NMOOP 28146 17143 7290.58 4112.47
2015-16 NMOOP 27337 14425 6683.80 3823.49
2016-17* NMOOP 30061 13348 8038.68 4241.57
Total 176823 94399 64494.99 30439.24
* Upto January, 2017
 Domestic cost of FFBs (Rs/ha) 2010
Initial cost Ist Year 2nd Year 3rd Year Total Annuity
value
Juvenile period (JP): 1-3 Yrs. 103827 127352 99034 330213 12230
Infrastructure Development Bore well, motors, pumps, 359640 14652
(ID) transformer, micro irrigation, farm
shed, fencing, implements etc
Cost of Cultivation 4th Year Yield of FFBs Cost of FFBs
Stabilizing period :4-8 Yrs 127122 12.38 t/ha 10268
(adding Annuity value of JP)
Stabilizing period :4-8 Yrs 141774 12.38 t/ha 11451
(adding annuity value of JP
& ID)
Stabilized period: 9-30 years 137416 19.81 t/ha 6936
(adding annuity value of JP)
Stabilized period: 9-30 years 152068 19.81 t/ha 7676
(adding annuity value of JP
& ID)

Source : IIOPR, Pedavegi

 FFBs price fixing mechanism

 13.54 % of net crude palm oil (CPO) weighted average

price, based upon 18 % Oil Extraction Ratio (OER),
plus 75.25 % on 9 % recovery of palm kernel nuts
weighted average price.
 This is based on estimated cost of cultivation at 75.25
percent in the total cost of production of CPO from
farm level to factory level.
 The OER would be determined as per actual oil
content extracted in the past by the processing
industry.
• To keep the import duty trigger at US$ 800/MT.
 Prices of CPO and FFB for the Oil Year (Nov to October)

CPO Price Rs. per MT FFB Price Rs. per MT

Sl. No. Month Sl. No. Month
Nov.,13 to Nov., 14 Nov. 15 to Nov.,13 to Nov., 14 Nov. 15 to
Oct., 14 to Oct., 15 Aug, 16 Oct., 14 to Oct., 15 Oct., 16

1 November 55565.61 44234.94 39048.37 1 November 7900.00 6598.00 5733.00

2 December 55467.65 42509.60 38407.21 2 December 7951.00 6370.00 5647.00

3 January 53926.65 45793.79 39865.27 3 January 7824.00 6803.00 5837.00

4 February 54240.23 43931.27 41509.73 4 February 7926.00 6557.00 6129.00

5 March 58105.48 44213.04 46897.42 5 March 8441.00 6595.00 6963.00

6 April 56514.67 42949.71 51682.16 6 April 8267.00 6421.00 7586.00

7 May 53994.90 43340.55 52406.80 7 May 7938.00 6473.00 7839.00

8 June 52020.27 44262.69 50392.63 8 June 7510.00 6601.00 7494.00

9 July 51984.57 42757.48 48065.52 9 July 7472.00 6240.00 7250.00

10 August 48380.47 38974.07 51259.98 10 August 7071.00 5722.00 7792.00

11 September 45191.89 36161.06 11 September 6424.00 5352.00 8434.00

12 October 45061.47 38495.04 12 October 6589.00 5731.00 8142.00

 Domestic & International prices of CPO
(Rs./MT)
Year Domestic International Differences

2012 52250 51633 2898

2013 53256 48240 2715

2014 47819 49052 1462

2015 40524 38515 3013

Lessons learnt from exposure visit to
Malaysia
 Indian delegation lead by Joint Secretary
(Oilseeds) visited Malaysia 22-25 August, 2016.
Observations include-
• Adoption of high density plantation;
• Import of high yielding genotypes (Calix,
Guthini etc.);
• Exchange of germplasm; and
• Improvement of nursery rather than depending
on import.
 Initiatives taken by Government of India
• A proposal submitted to Ministry of Finance on 13.02.2017 for imposing a cess of 0.5% on
import of crude palm oil (CPO) and refined bleached deodorized palmolein (RBDPL) for
creation of ‘Edible Oil Development Fund’ (EODF).
• A Cabinet Note on “Measures to increase oil palm area and production in India”
submitted to the Cabinet Secretariat on 13.02.2017 for relaxation of land ceiling limit for
oil palm cultivation and revision of norms of assistance under Mini Mission-II of NMOOP.
• A study on feasibility of oil palm cultivation in four districts of Bodoland Territorial Council
(BTC) of Assam undertaken by Indian Institute of Oil Palm Research (IIOPR), Pedavegi.
• In order to protect the farmers from distress, Govt. of India is implementing the Market
Intervention Scheme (MIS) for providing financial support to the oil palm growers.
• A study has been assigned to Dte. of E&S for assessment of performance of
indigenous and imported seedling in three major oil palm growing States viz, Andhra
Pradesh, Karnataka and Tamil Nadu.
• 100% FDI has also allowed for oil palm crop through automatic route. The benefits of 100%
FDI in oil palm would be possible only after declaration of oil palm as a plantation crop. In
this regard, a letter has been written to all Chief Ministers of the concerned states in the
month of January, 2016.
State-wise list of the processing mills established so far in the country
 

Sl. Name of the Unit Sector Processing capacity

No. (in tonnes per hr)
Andhra Pradesh
1 APOILFED, Pedavegi-West Godavari A.P. Govt. Subsidiary Unit 15

2 M/s. Radhika Veg. Oil Pvt. Ltd., Garividi- Pvt. 10

Vijaya Nagaram
3 M/s. RSIL, Ampapuram-Krishna Distt. Pvt. 40

4 Simhapuri Agro Products Ltd., Manubrola- Pvt. Under Construction

Nellore
5 M/s. Godrej Oil Palm ltd., Pothepalli-West Pvt. 40
Godavari Distt.
6 M/s. Godrej Agrovet, Oil Palm ltd., Pvt. 30
Chintampalli
7 M/s. RSIL, Peddapuram-East Godavari Distt. Pvt. 30

8 M/s. Nav Bharat Agro Products, Pvt. 30

Jangareddygudem-West Godavari Distt.
9 3F Oil Palm Agrotech Pvt. Ltd. Yernagudem Pvt. 30
Village Devarapalli Mandal West Godawari
Distt.
10 M/s. Agro Co-operative Corporation, Pvt. 5
Butchiyyapeta (M), Vishakhapattnam Dist.
11 M/s Sri Srinivasa Palm Oil Mill, Srikakulam Pvt. 5
dist.
12 M/s Subrahmanyeswara Agro Products, Pvt. 5
Siripalli Ainavilli Mandal, East Godavari
13 M/s Lakshmi Balaji Oils, Tekarandi (V), Pvt. Under Construction
Vizianagram dist.
Total 240
Telangana
14 A.P. Oilfed (Khammam District) A.P. Govt. Subsidiary Unit 10
Total 10
Karnataka

15 M/s. Bhadravathi Balaji Oil Palm Ltd. (BBOP Ltd.), Joint Venture of State & M/s. 10
Shimoga B.B.O.P.Ltd.
16 Govt. Oil Palm Processing mill, Kabini, Mysore. Leased to State Government (leased to 1
M/s Ruchi Soya industries Ltd. M/s. Ruchi Soya industries Ltd.)
17 M/s. Simhapuri Agri Tech Company Pvt. Ltd., Davangere Pvt. 5
18 M/s. 3F Oil Palm Agrotech., Koppal Pvt. 5

Total 21
Tamil Nadu
19 M/s. Godrej Agro Ltd., Varanasi, Ariyalur dist. Pvt. 2.5
Total 2.5
Kerala

20 OPIL, Yerror Estate, Kallam Public Sector 20

Total 20
Andaman & Nicobar
21 Andaman & Nicobar Islands State Government 4

Total 4
Gujarat
22 Shri Kalyan Agri. Crops Sales & Processing Coop. Society Cooperative Sector 2.5*
Ltd., Navasari
Total 2.5

Goa
23 M/s. Godrej Agrovet Ltd., Ponda, Goa Pvt. 2.5*
Total 2.5
Odisha
24 M/s Lakshmi Balaji Oil Mills (P) Ltd. Attada, Rayagada Pvt. 5
Total 5
Mizoram
25 M/s Godrej Agrovet Ltd. Kolasib Dist. Pvt. 5
26 M/s Ruchi Soya Industry Ltd., Pvt. To be established
27 M/s 3F Oil palm Agrotech. Pvt. To be established
Total 5
Grand Total 312.50
* expending up to 5 tones
 Oil Palm Seed Gardens in India
Location of the seed garden Year Sprout production (in Lakh)
of planting Potential Present level Scope for enhancement
(2013-14)

Seed Garden
1. Indian Institute of Oil Palm Research, Pedavegi 2000 6.0 3.1 2.9
(A.P.)
2. Indian Institute of Oil Palm Research-Research 1982 8.0 3.1 4.9
Centre, Palode, (Kerala)
3. M/s. Navabharath Private Ltd., Lakshmipuram 1990 6.0 3.8 2.2
(A.P.)
4. Department of Horticulture, Rajahmundry (A.P.) 1992 10.0 4.7 5.3
5. Oil Palm India Limited, Thodupuzha (Kerala) 1994 11.0 6.0 5.0

6. Department of Horticulture, Taraka, (Karnataka) 1994 8.0 3.7 4.3

Total 49.0 24.4 24.6
1. Morumpudi, Department of Horticulture, 2012 5.0* New -
Rajahmundry (A.P.)
2. Gopannapalem, Department of Horticulture, 2014 5.0** New -
Rajahmundry (A.P.)
3. Taraka (Taraka-II), Department of Horticulture, 2012 5.0* New -
Taraka, Karnataka
4. Kabini, Department of Horticulture, Taraka, 2012 8.0* New -
Karnataka
Total 23.0
* Expected year of initiation of seed production-2020
** Expected year of initiation of seed production-2020
 Availability of imported/domestic sprouts and area coverage

Types of Number of sprouts (lakh) and area coverage (ha)

Sprouts
2010-11 2011-12 2012-13 2013-14 Total

Imported 26.00 34.00 70.50 40.20 170.70

Domestic 8.46 16.22 20.32 24.40 57.24

Area Covered 17,925 28,388 26,300 22,948 95,561

 Focus on North-Eastern States
• An area of 2.23 lakh ha has been identified potential for Oil Palm cultivation
by Dr. Rethinam Committee in NE states.
• All NE States are covered under NMOOP for Oil Palm cultivation. Presently,
four states namely Mizoram, Assam, Arunachal Pradesh and Nagaland are
implementing the programme.
• In the state of Mizoram, more than 27,000 ha area has been achieved under
Oil Palm cultivation.
• One Oil Palm processing mill has been established by M/s Godrej Agrovet Ltd.
and now in operation.
• Special provisions have been made for NE/Hilly states for construction of
roads from Oil Palm fields to nearest FFBs collection/processing centers and
establishment of Oil Palm processing mills.
• Interventions of MM-II are being shared in the ratio of 90:10 between Central
and State Government.
Thank You