India imports a huge amount of edible oil every year. For the financial year 2024-25, the country may spend more than Rs 9 lakh crore or 104 billion US dollars on importing edible oil. This is a major part of India’s total import bill, along with crude oil and gold.
Now, Patanjali Group has taken a big step to reduce this cost. The company has signed an important agreement with the Malaysian government to support palm oil production in India.
What is the Deal Between Patanjali and Malaysia?
Patanjali has signed a 5-year contract with a Malaysian government agency named Sawit Kinabalu Group.
Under this deal:
- Malaysia will supply 40 lakh palm oil seeds to Patanjali.
- So far, 15 lakh seeds have already been delivered.
- The contract will continue until the year 2027.
This is the first time the Malaysian government is exporting palm seeds under a government-to-company contract. Malaysia processes over 1 crore palm seeds every year.
Agricultural experts will also visit production sites in India to check seed quality and ensure proper plantation.
Patanjali’s Palm Oil Plan in India
Patanjali is planning to set up a palm oil mill in Northeast India, which will start operations by 2026. Currently:
- India has palm plantations on 3.69 lakh hectares of land.
- About 1.8 lakh hectares are already ready for harvest.
- By 2024, the cultivation area grew to 3.75 lakh hectares.
- In the future, 80,000 to 1 lakh hectares more land will be added.
The Indian government has a goal to expand palm oil farming to 66 lakh hectares by 2030. This can produce up to 28 lakh tonnes of palm oil.
Government Support to Palm Oil Farming
The National Mission on Edible Oils – Oil Palm (NMEO-OP) was started in 2021-22 by the Indian government.
This program supports palm oil farming mainly in:
- Northeast India
- Andaman and Nicobar Islands
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Currently, states like Andhra Pradesh, Telangana, and Kerala produce 98% of India’s palm oil.
How This Will Help India
India is the world’s largest edible oil importer. In 2023-24, the country spent over 96.1 billion dollars on imports. According to reports, India may import 16.23 million metric tonnes of edible oil in 2024-25.
With Patanjali’s new plan:
- India will grow more palm oil locally
- This will reduce import dependence
- It will save the country Rs 9 lakh crore in future import bills
This move also supports local farmers and creates more jobs in agriculture and processing.
Disclaimer: This article is for general information only. Data is based on media and government sources as of 21 June 2025. Figures and policies may change. Please verify details before making business or financial decisions.
