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Policies Related to Production and Distribution of Palm Oil Subsidies for distribution of imported palm oil:

The Ministry of Food has been subsiding imported edible oil distribution under the public distribution system (PDS):

To provide relief, in particular BPL households, from the rising prices of edible oils, the Central Government introduced a scheme for distribution of upto 10 lakh tons of imported edible oils in 2008-09 at

a subsidy of rs 15/- per kg through State Governments/UTs.


The scheme was extended during 2009-10, 2010-2011 and in 2011-12. After the implementation of the scheme, edible oil prices have substantially declined and poorer sections were provided edible oils at subsidized rates.

Oil Palm Development Programme in India:


OPDP was launched during 1991- 92 under the “Technology Mission on Oilseeds and Pulses” (TMOP), with a focus on expansion of area under oil palm cultivation.

From 2004-05, the scheme is being implemented as part of the “Integrated Scheme of Oilseeds, Pulses, Oil Palm & Maize” (ISOPOM) and provides support for oil palm cultivation in 12 states: Andhra Pradesh, Assam, Gujarat, Goa, Karnataka, Kerala, Maharashtra, Mizoram, Orissa, Tamil Nadu, Tripura & West Bengal.

For the year 2011-12, the government rolled out the Oil Palm Area Expansion (OPAE) Programme in order to bring an additional 60,000 hectares area under oil palm cultivation.

The government has also announced various subsidies for oil palm growers for planting, buying pump set and drip-irrigation systems, partial compensation in case of loss during the gestation period and support for processing units.

Roundtable on Sustainable Oil (RSPO)


The RSPO was established in 2004 to promote the production and use of sustainable palm oil for people, planet and prosperity

RSPO is a membership based organisation with oil palm growers, palm oil processers and traders, consumer good manufactures, NGOs and retailers.

8 principles for growers to be RSPO certified


commitment to transparency


compliance with applicable laws and regulations


commitment to long term economic and financial viability


use of appropriate best practices by growers and millers


environmental responibility and conservation of natural resources and biodiversity


responsible consideration of employees, and of individuals and communities affected by growers and mills

responsible development of new plantings


commitent to continous improvement in key areas of activity