{"id":73849,"date":"2021-11-04T12:00:00","date_gmt":"2021-11-04T12:00:00","guid":{"rendered":"https:\/\/chinadialogue.net\/?p=73849"},"modified":"2021-11-04T14:43:18","modified_gmt":"2021-11-04T14:43:18","slug":"what-would-large-scale-cultivation-of-oil-palm-mean-for-india","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/food\/what-would-large-scale-cultivation-of-oil-palm-mean-for-india\/","title":{"rendered":"What would large-scale cultivation of oil palm mean for India?"},"content":{"rendered":"\n

In his Independence Day speech in August, India\u2019s Prime Minister Narendra Modi announced a scheme<\/a> to support the growth of palm oil in India. Three days later, the Cabinet approved a \u20b911,040 crore (US$1.4 billion) outlay over five years for a scheme called the National Mission on Edible Oils \u2013 Oil Palm<\/a>, based on the argument that India needs to reduce its dependence on importing edible oils. Since then, there has been much discussion on whether this is good for the environment or not. The discussion has largely been framed within the rubric of \u201cenvironment versus development\u201d, and many valuable details are being ignored to the detriment of a logical discourse.<\/p>\n\n\n\n

There is nothing new about palm oil. The plant was cultivated in west Africa<\/a> and reached global markets with the Atlantic slave trade five centuries ago. As its efficacy was discovered by European nations, it transformed from a luxury product into a cheaper replacement for things such as tallow in soaps and as a cooking oil. Over time, demand outstripped supply, and the market needed more production. This was when company-owned oil palm plantation development began in Southeast Asia<\/a>.<\/p>\n\n\n\n

Cornered market<\/h2>\n\n\n\n

According to the US Department of Agriculture, the world will produce approximately 76.5 million tonnes<\/a> of palm oil in 2021, 58% of this in Indonesia, and 26% in Malaysia. No other country produces even 5% of the global supply. Palm oil is cheap and versatile. It is found in everything from lipstick to ice cream. For Indians, though, its primary use has been as a cooking oil. India is the world\u2019s largest importer of palm oil \u2013 outstripping China, the European Union, Pakistan, Bangladesh, and the US. Over 90% of the palm oil imported is used for cooking, replacing various types of oil seeds, and the total import quantity has grown almost 10 times in the last 20 years. It is to deal with the huge import bill that the government is supposedly floating this scheme.<\/p>\n\n\n\n

\"Palm<\/div>
<\/div><\/div><\/div><\/div>\n\n\n\n

But again, this is nothing new. The Ministry of Agriculture launched the Oil Palm Development Programme in 1991-92. It has continued in one form or the other since then. The National Mission on Oilseeds and Oil Palm was started in 2012, as part of the 12th Five Year Plan (2012-17), and it identified two million hectares of cropland where palm oil could be cultivated. Incentives, like the one currently proposed under the latest scheme, were offered. In April 2017, the Ministry of Agriculture raised rates of support for planting, maintenance, inter-cropping and borewells for the promotion of oil palm cultivation. Many of the states identified under the scheme were from the northeast of the country, which is highlighted in the current scheme as well. Even the Andaman and Nicobar Islands saw oil palm cultivation started by the Kerala state government in the 1970s.<\/p>\n\n\n\n

Zero growth<\/h2>\n\n\n\n

What is worth noting, though, is that the area under cultivation remains largely unchanged. According to the US Department of Agriculture, that area was 80,000 ha in the market year 2012-13. It is projected to be 80,000 ha in 2021-22, a change of a big fat zero. India ranks 17th in terms of production, at about 200,000 tonnes a year, less than 0.5% of what Indonesia produces.<\/p>\n\n\n\n

Will more subsidies really make a difference? Has oil palm cultivation benefited the Indian farmer? Has it benefited the Indian economy? Is it appropriate for the environment?<\/p>\n\n\n\n