Oil Palm Production

• Context (DTE): The push for large-scale monoculture plantations of palm oil is taking a toll on the environment and people’s economic and social security.

About Oil Palm (Elaeis guineensis)

• Palm oil is an African tree in the palm family (Arecaceae), cultivated as a source of oil.
• Distribution: It is grown extensively in its native West and Central Africa, and Malaysia and Indonesia. Due to its high demand, plantations are spreading across Asia, Africa and Latin America.
• It contains beta-carotene, saturated and unsaturated fats, and vitamin E.
• It is used for preventing and treating vitamin A deficiency.

Conditions suitable for palm oil plantation

• Climate: Humid tropical climate.
• Temperature: 22°C to 24°C (minimum) and 20°C to 33°C (maximum).
• Sunshine: At least 5 to 6 hours of bright sunshine per day.
• Humidity: 80% of humidity for optimum growth.
• Rainfall: Annual evenly distributed rainfall of 250 to 400 cm.
• Soil: Thrive best in well-drained deep loamy moist and alluvial soils rich in organic matter.

Uses

• Palm oil has a high number of uses due to it versatility. It is used in
  • Cooking
  • Processed foods (like chocolate bars, ice cream, instant noodles, and margarine)
  • Cosmetics, soaps, shampoos, and detergents
  • Biofuels

Palm Oil Cultivation & Associated Benefits

• Cultivation on agricultural lands: India’s current policy of palm oil development is to promote palm oil in agricultural lands by replacing low value crop. This reduces chance of biodiversity loss.
• Carbon sequestration: An oil palm plantations can sequester up to 15 tonnes of CO₂ per hectare.
• Benefitting small farmers: The mission will benefit small farmers because:
  • It will be implementated 100% by small farm holders.
  • Companies cannot buy or lease land.
  • GoI will give incentives for the first years when the farmer doesn’t get any income from the crop.
  • The company will give farmers saplings that are ready to plant.
  • Whatever the farmer produces, the company has to buy as per government-regulated price.
• High edible oil productivity: Oil palm produces 10 to 46 times more oil per hectare compared to other oilseed crops like mustard, sunflower, or sesame.

Concerns with Palm Oil Cultivation

• Biodiversity loss: Monocropping of palm oil plantations lead to deforestation and biodiversity loss. E.g. palm oil plantations in Mizoram had the lowest forest bird species richness (10 species).
• Water scarcity: Palm oil is water intensive, with each plant requiring 250-300 litres a day.
• Soil health deterioration: It requies large quantities of chemical fertilizers and pesticides.
• Shift in land tenure systems: These plantations shifts land tenure from community to private hands.
• Wrong terrain: According to FAO, 90% of Northeast India is unsuitable for palm oil cultivation.
• Infrastructure: Palm fruits must be processed within 48 hours of harvest, but the region lacks the infrastructure for rapid transport.
• Loss of food security: Traditional cultivation practices like jhum cultivation will be discouraged. This leads to the drying up of groundwater, loss of natural forest resources, and fewer food crops.
  • Forest bird abundance in the jhum cultivation landscape was similar to rainforest and, on average, 304% higher than in palm oil plantations.
• Loss of livelihood: High cost, high labour, groundwater depletion, and loss of soil fertility associated with palm oil cultivation may cost the livelihood of farmers in the long run.
• Man-animal conflict: The palm oil will create a food crisis for many wildlife species as they don’t eat oil palm fruits. This will further aggravate the man-animal conflicts.
• Increase in zoonotic diseases: Monoculture crops can lead to the spread of zoonotic diseases by:
  • Reducing biodiversity
  • Increasing human-animal contact
  • Altering ecosystem dynamics
  • Health issues: Tropical oils like palm oil and coconut oil are high in saturated fat, which has long been linked to heart disease. They boost “bad” LDL cholesterol and triglycerides.

National Mission on Edible Oils-Oil Palm (NMEO-OP)

• NMEO-OP is a centrally sponsored scheme launched by GoI in 2021-22.
• Objective: To enhance edible oil production by oil palm’s area expansion & productivity increase.
• Aim: To reduce the import burden of edible oils.
• Of the total outlay, 80% is GoI’s share and 20% is the state government’s share.
• Special focus regions: Northeast India and A&N Islands.
• NMEO-OP is being implemented in 15 states, including six northeastern states, Arunachal Pradesh, Assam, Manipur, Mizoram, Nagaland and Tripura.

Salient features of NMEO-OP

• Financial assistance for planting material
• Inputs for intercropping up to the gestation period of 4 years and for maintenance
• Price assurance
• Viability gap funding (a grant for projects that are economically justified but not financially viable)