State-wise Palm Oil Production in India

Andhra Pradesh is the leading palm oil producing state in India contributing approximately 86 % of country’s production, followed by Kerala (10%) and Karnataka (2%). Other palm oil producing states include Orissa, Tamil Nadu, Goa and Gujarat.

Major constraints in domestic cultivation of oil palm

♤ Geographical location: The ideal locations for oil palm trees are within eight degrees latitude north and south of the Equator.

♤ Irrigation: Palms need regular rainfall throughout the year. However, they can withstand dry periods of 3- 4 months depending on soils type without irrigation. Oil palm can be grown in Kerala, Andhra Pradesh, Karnataka, Goa and a few other areas, but only with irrigation. This places significant pressure on the hydrological system of the region.

♤ Long gestation periods: Oil palm has very high productivity when compared to other oilseeds like mustard, however, the farmers would have to wait for four years for the trees in India to obtain yield.

♤ Small farm holdings with Indian farmers generally are challenging.

♤ Limited investments by corporate sector compared with Malaysia and Indonesia.