Being Agrarian: Sustainable palm oil holds promise for current and future food security in India

As the current G20 president, India champions “Green Growth” as a priority area, emphasising the importance of sustainable development, climate resilience, and meeting the ever-growing demand for food in an environmentally responsible manner. This leadership position offers India a unique opportunity to pave the way for sustainable food security on a global scale. As the stakes continue to rise, it is crucial for India to seize the moment and lead the charge towards a greener, more sustainable future.

The rapid expansion of India’s FMCG sector, expected to grow by 20 percent  this year and reach US$120 billion by 2025, has led to a surge in demand for palm oil. Palm oil now accounts for about 40 percent of India’s edible oil consumption, totalling around 9 million tonnes per year. It has become a staple in Indian households, and the cooking oil of choice for many local entrepreneurs as well.

As the world’s second-largest consumer and largest importer of palm oil, India therefore plays a critical role in promoting sustainable practices within the industry.

Palm oil is in fact a highly efficient oil-bearing crop, accounting for 35.5 percent of global vegetable oil output while using only 0.6 percent of the world’s agricultural land. As we confront the pressing challenges of climate change and its impact on food security, a comprehensive approach to addressing sustainable sourcing of palm oil is crucial.

Encouragingly, India has already taken significant strides in promoting palm oil production through initiatives like the NMEO-OP, which seeks to make India self-reliant by cultivating oil palm domestically to reduce the country’s dependence on palm oil imports. The scheme has recognised the potential risks that the sector might face related to water, long gestation periods and the impacts of monoculture plantations on the ecosystem. It is encouraging to note that the NMEO-OP mission has put in measures to incentivise efficient water usage, promote intercropping and define a pricing mechanism to mitigate some of the sustainability risks.

Recognising the potential for India to drive the demand for sustainable palm oil, the Roundtable on Sustainable Palm Oil (RSPO) is working with its members and stakeholders in the country to lead the change toward a greener future. Through a global multi stakeholder partnership, the RSPO defines worldwide standards for sustainable production and use, together with national interpretations to account for local variations in production practice. This helps to create a common understanding of sustainability across the palm oil sector.

Furthermore, the RSPO is actively supporting smallholder farmers in transitioning to sustainable practices, connecting them with markets, and ultimately improving their livelihoods. Working with industry associations, importers, traders, consumer brands and civil society, the RSPO is supporting smallholder farmers in places like Andhra Pradesh to strengthen demand for sustainably-sourced palm products in the Indian market.

As the demand for vegetable oils grows apace, it is crucial for all stakeholders to prioritise sustainable palm oil practices, embrace organisations like the RSPO, and align their efforts to tackle climate change and enhance food security. The commitment from members and stakeholders of the RSPO to ensure that all palm oil produced and consumed within India is sustainable will pave the path towards a sustainable palm oil sector globally.

By placing sustainable palm oil at the core of its agricultural transformation, India can help pave the way globally for a greener, more resilient future that ensures food security for generations to come.