The role of palm oil in ensuring India's food security

India is the world's largest importer of palm oil, purchasing over 9 million tonnes per year during a typical oil year. This accounts for nearly two-thirds of the country's total vegetable oil imports. Palm oil makes up over 38 percent of India's total edible oil consumption, with its share being even higher in rural areas due to its affordability for low- and middle-income households.

In retail trade, standard packages of palm oil range from ₹130 to ₹145 per kilogram, whereas sunflower oil is sold at around ₹160–170. Amid rising vegetable oil prices in 2024 at nearly 20 percent, palm oil maintained a lower price range. Institutions such as ICMR and the National Institute of Nutrition classify palm oil as a component of a balanced diet. Furthermore, this product is used in state subsidy programs: notably, in Tamil Nadu, over 7.5 million ration cardholders depend on such supplies.

The high yield of the crop attracts the attention of planners: the oil palm produces about 35 percent of the global vegetable oil volume on less than one-tenth of the land used for oil crops. The yield is about four tonnes per hectare compared to approximately 1.2 tonnes for mustard. The National Mission on Edible Oils aims to achieve nearly three million tonnes of domestic production by 2030.

At the same time, India depends on global market conditions, as Indonesia and Malaysia dominate production, while importers face demands for forest protection and supply chain transparency. Palm oil production is associated with emission risks during land clearing and social difficulties for smallholders. Sustainability standards serve as a risk management tool: the Roundtable on Sustainable Palm Oil (RSPO) covers 5.1 million hectares across 24 producing countries and provides just over 20 percent of the global volume. In 2024, India imported approximately 431,000 tonnes of certified palm oil, considering tightened regulations in other regions such as the EU.