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Economy News, Latest Economic News Today | The HinduBusinessLine

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A palm oil partnership built on shared responsibility
2026-04-25 · via Economy News, Latest Economic News Today | The HinduBusinessLine

India’s journey towards self-reliance is not a retreat from global engagement, but a reaffirmation of its commitment to shared prosperity and responsible economic integration. Anchored in the guiding principle of Vasudhaiva Kutumbakam (the World is One Family), India’s vision of Atmanirbhar Bharat seeks to build a self-reliant and resilient economy that remains firmly connected to global value chains.

Within this framework, India’s efforts to strengthen food and nutritional security support both domestic production and global market stability. By building local capacity while sustaining trusted international partnerships, India contributes to price stability and long-term economic resilience.

Malaysia, a trusted partner in India’s food security

Malaysia is a long-standing and committed partner in India’s journey to self-reliance. As a reliable supplier of sustainable palm oil, Malaysia continues to support India’s edible oil requirements.

As the world’s most populous country, India is highly dependent on imports of edible oils such as palm oil to meet its domestic demand. In 2025, the country imported about 7.7 million tonnes of palm oil. Of this, Malaysia contributed 36.6 per cent, making India the single largest export destination of sustainable Malaysian Palm Oil for the 12th consecutive year since 2014. This trade relationship has demonstrated resilience amid global supply disruptions, geopolitical uncertainty and price volatility.

Sustainability and yield growth without land expansion

Malaysia’s role as a dependable supplier is reinforced by its strong commitment to sustainability and responsible production. Malaysian palm oil is produced under the Malaysian Sustainable Palm Oil certification system, which emphasises traceability, transparency, environmental protection and social responsibility. The certification has gained international recognition such as in the UK as a credible sustainability framework, strengthening confidence among policymakers, industry and consumers. At the same time, Malaysia has focused its growth strategy on improving yields rather than expanding cultivated land. Its improved oil palm varieties grow more slowly in height, extend plantation lifespans beyond 30 years and improve harvesting efficiency, enabling productivity gains while maintaining environmental safeguards.

This emphasis on sustainable intensification allows Malaysia to pursue realistic growth targets while delivering on its commitments to forest conservation, biodiversity protection and climate responsibility.

NMEO-OP and complementary growth

India’s National Mission on Edible Oils-Oil Palm (NMEO-OP) reflects a similarly balanced approach to securing the country’s long-term edible oil needs. Launched in 2021, the mission aims to expand oil palm cultivation to one million hectares by 2025-26 and achieve nearly 2.8 million tonnes of crude palm oil production by 2029-30. As of November 2025, approximately 2.50 lakh hectares has been brought under the programme, increasing India’s total oil palm cultivation area to 6.20 lakh hectares.

The programme is being implemented in a mission mode with the active involvement of all stakeholders, focusing on expanding domestic availability of high-quality seedlings through seed gardens and nurseries, improving oil palm’s fresh fruit bunch productivity, increasing drip irrigation coverage and encouraging crop diversification from low-yield cereals to oil palm. Farmers are also supported through intercropping during the four-year gestation period. In India, oil palm cultivation is promoted on existing agricultural land, without encroaching on forests. With their long-life cycle, these plantations also provide extended green cover, contributing to environmental sustainability.

Malaysia has actively supported this mission through the supply of high-quality germinated oil palm seeds and technical expertise. Meanwhile, Malaysian exporters continue to provide technical support to ensure that these materials perform well under Indian agro-climatic conditions and contribute to long-term productivity. Today, India has emerged as Malaysia’s largest importer of oil palm seeds, reflecting confidence in Malaysian planting material and agronomic practices.

This collaboration marks an important evolution in the bilateral relationship, moving beyond trade flows to technology sharing and capacity building. Malaysia’s support for NMEO-OP complements India’s self-reliance objectives by strengthening farmer incomes, enhancing domestic production capacity and reducing long-term import dependence, while ensuring supply stability during the transition period.

As global edible oil markets face growing uncertainty driven by climate risks, regulatory shifts and geopolitical pressures, partnerships built on trust, transparency and shared responsibility are becoming increasingly important. Malaysia’s commitment to sustainable production and consistent supply, combined with India’s domestic policy initiatives under NMEO-OP, reflects a pragmatic and forward-looking approach to food security.

The India-Malaysia palm oil partnership also demonstrates how producer and consumer nations can align trade, sustainability and development objectives in a mutually beneficial manner. Rooted in the spirit of Vasudhaiva Kutumbakam, this collaboration underscores the belief that shared prosperity is best achieved through cooperation, responsibility and long-term vision.

The author is Chief Executive Officer, Malaysian Palm Oil Council

Published on April 26, 2026