As global food systems face rising pressure from population growth, supply chain disruptions and shrinking resources, India must adopt agricultural models that are productive, affordable and sustainable. In edible oils, the widening demand-supply gap makes self-sufficiency increasingly important. Oil palm cultivation offers a strong solution, combining high productivity, affordability and resilience for both farmers and consumers. Its benefits increase further through intercropping, which improves farm income while strengthening ecological balance.
Field evidence shows that intercropping can significantly raise returns. Studies indicate that oil palm intercropped with cocoa can produce up to 21.95 tonnes per hectare of fresh fruit bunches (FFB), compared to 16.22 tonnes under monocropping. Farmers in Andhra Pradesh report cocoa yields of nearly 1.5 kg of dry beans per tree, generating net returns of around ₹1.25 lakh per hectare with a cost-benefit ratio of 1:2.78. To support this model, the Department of Agriculture & Farmers Welfare (DA&FW) provides financial assistance of ₹5,250 per hectare annually for intercrops during the four-year gestation period.
Oil palm is the world’s highest oil-yielding crop per hectare, yet many farmers remain unaware of its suitability for intercropping. With a productive life of 25–30 years and wide spacing during both juvenile and mature stages, the crop allows efficient use of land, sunlight, water and nutrients. Intercropping also improves soil health by adding organic matter, conserving moisture, controlling weeds, regulating soil temperature and creating a favourable microclimate for better palm growth.
The success of intercropping depends on choosing suitable crops at the right stage of oil palm growth. During the first three years, oil palm occupies only 5–15 per cent of the land, leaving enough space for intercrops. Since palms begin yielding returns only from the fourth year, intercropping becomes a vital source of early income.
Farmers can grow cereals, millets, pulses, oilseeds, vegetables, flowers, spices, medicinal plants, fodder and commercial crops during this juvenile phase, provided these crops do not compete heavily for light, water and nutrients. However, management of the main crop remains critical. Practices such as planting too close to palm basins, removing palm fronds or prioritising intercrops over oil palm can affect long-term productivity. Separate irrigation systems and recommended fertiliser doses should be maintained. Rice may be cultivated on sloping lands but should be avoided on plains because of water stagnation risks.
As oil palm matures, its canopy expands and sunlight availability drops below 30 per cent, making shade-tolerant crops more suitable. Farmers can then cultivate cocoa, coffee, banana, pineapple, colocasia, elephant foot yam, heliconia, ornamental ginger, black pepper, cinnamon, ginger and turmeric, among others. This diversification spreads risk and creates multiple income streams.
Among these, cocoa is especially compatible with mature oil palm plantations. The shade provided by oil palm creates a favourable microclimate for cocoa, while the two crops compete minimally for nutrients. Together, they contribute substantial biomass, improving soil fertility and long-term productivity. Cocoa is typically introduced around the seventh year, when sufficient shade develops, and can continue throughout the productive life of the plantation.
Intercropping in mature plantations also helps buffer farmers against fluctuations in fresh fruit bunch prices while improving soil properties, humidity, root density and weed control. Depending on their resources, farmers can adopt simple double-cropping systems or more advanced multistoried models. Successful demonstrations in Andhra Pradesh and Kerala show the strong potential of this approach.
At a time when Indian agriculture must produce more with fewer resources, oil palm intercropping offers a practical pathway towards resilient and profitable farming. By combining sustained incomes with healthier soils and efficient land use, it supports both economic and ecological sustainability.
As India moves towards self-reliance in edible oils, scaling up oil palm intercropping is becoming increasingly important. The model offers a rare convergence of profitability, sustainability and nutritional security, making it a promising growth engine for future-ready Indian agriculture.
The author is Director, ICAR-Indian Institute of Oil Palm Research, Pedavegi, Andhra Pradesh
Published on May 31, 2026
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