New Delhi: India spends a huge amount of money every year on importing edible oil — around Rs 9 lakh crore is expected to be spent in the financial year 2024-25. Despite domestic production, the demand is so high that imports are necessary. To reduce this burden, Patanjali has signed a major agreement with the Malaysian government.
Under this deal, Malaysia’s government agency Sawit Kinabalu Group will supply 40 lakh palm oil seeds to Patanjali over five years. So far, they have already supplied 15 lakh tonnes of palm oil. The contract, which will end in 2027, also includes regular quality checks by agricultural experts. This is the first time Malaysia has signed such a seed-supply agreement.
Patanjali is also planning to set up a palm oil mill in North-East India by 2026 to support this project. Currently, India grows palm on about 3.69 lakh hectares of land, and more land is being added each year. The central government aims to expand palm cultivation to 66 lakh hectares by 2030 under the National Mission on Edible Oils-Palm Oil (NMEO-OP), especially in the North-East and Andaman and Nicobar Islands.
At present, most of India’s palm oil comes from Andhra Pradesh, Telangana, and Kerala, which together produce 98% of the country’s supply. The goal is to produce up to 28 lakh tonnes of palm oil in the future.
With this plan, India hopes to reduce its massive edible oil import bill. In 2023-24, the country spent more than $96 billion on edible oil. In 2024-25, imports could reach 16.23 million metric tonnes, making India the world’s largest edible oil importer. The Patanjali-Malaysia deal is expected to play a key role in reducing this dependency.
