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News » India News » Patanjali to tie up with Malaysia to curb edible oil inflation in India

India News

Patanjali to tie up with Malaysia to curb edible oil inflation in India

NM Desk
Last updated: 18 June, 2025 3:45 PM
NM Desk
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Patanjali to tie up with Malaysia to curb edible oil inflation in India

New Delhi: Patanjali, one of India’s largest FMCG companies, has made a big move to reduce the rising prices of edible oil in the country. The company has joined hands with Malaysia to promote domestic palm oil cultivation. Under this initiative, Malaysia’s government agency, the Sawit Kinabalu Group, has supplied 15 lakh palm seeds to Patanjali so far.

This is part of a five-year contract between the two groups, which began in 2022 and will end in 2027. According to the agreement, the Malaysian agency will supply a total of 40 lakh palm seeds to Patanjali Group during this period.

While Malaysia has always been a major exporter of palm oil to India, this is the first time a government agency from Malaysia has officially signed a deal to supply palm seeds. This move comes at a time when India is encouraging domestic palm cultivation to reduce its heavy dependence on imports.

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The seed-related subsidiary of Sawit Kinabalu Group processes nearly one crore palm seeds every year. Dr Juraini, the general manager of the group’s seed unit, said that they have already sent 15 lakh seeds to Patanjali and will complete the rest in the coming years. He also said that apart from seeds, they will provide expert advice, visit the plantation sites, and help monitor the quality of the crops.

Nazlan Mohamad, the chief sustainability officer of the group, mentioned that the seeds planted in India are showing promising results. In fact, the saplings growing in northeast region of India are in good health. He also pointed out that due to growing domestic demand in Malaysia, the agency is getting government subsidies to replant palm in their own country. This means the seed supply to India may be limited, but they are still open to working with more Indian companies in the future.

Patanjali, on its part, is also preparing to set up a palm oil mill in northeast India. This mill is expected to begin operations by 2026. India currently has about 3.69 lakh hectares under palm cultivation. Out of this, 1.8 lakh hectares are almost ready for harvesting. The total area is expected to rise to 3.75 lakh hectares in 2024 and may further expand by 80,000 to 1 lakh hectares soon.

The Indian government is aiming to bring palm oil cultivation to a massive 66 lakh hectares by 2030. This would help the country produce around 28 lakh tonnes of palm oil, which will significantly reduce the need for imports.

To support this goal, the government launched the National Mission on Edible Oils–Palm Oil (NMEO-OP) in 2021-22. The scheme focuses on increasing palm cultivation mainly in Northeast India and the Andaman and Nicobar Islands. At present, Andhra Pradesh, Telangana, and Kerala contribute to 98% of India’s palm oil production.

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