Growth dynamics of oil palm in India and Andhra Pradesh: a comparative and policy-centric analysis

India stands as a leading consumer and the top importer of palm oil, responsible for one-fifth of global imports. This study analyses the growth performance and stability of oil palm cultivation in India, with a focus on Andhra Pradesh, the leading state contributing 83% of the country’s crude palm oil production. Utilizing the data spanning from 2000–01 to 2022–23 for production and from 2009–10 to 2022–23 for area and productivity, the Exponential Compound Annual Growth Rate (CAGR) and Cuddy-Della Valle Index (CDVI) were employed to analyse growth trends and stability respectively. Results reveal a significant expansion in the cultivated area, with a national CAGR of 7.06% surpassing Andhra Pradesh (5.86%) from 2009–10 to 2022–23. The production of Fresh Fruit Bunches (FFB) and Crude Palm Oil (CPO) in Andhra Pradesh showed remarkable growth rates of 12.54% and 14.08%, respectively, with a notable increase in productivity. Despite these gains, instability persists due to water-intensive practices, input cost fluctuations, and climate-related uncertainties. The findings underscore the need for targeted policy interventions promoting sustainable water use, resilient farming systems, and stronger support infrastructure to ensure long-term viability of India’s oil palm sector. In addition, emerging concerns over biodiversity loss and ecological trade-offs in newly targeted cultivation zones highlight the urgency for a region-specific regulatory framework. Integrating scientific research, social safeguards, and policy coordination will be key to achieving sustainable expansion aligned with national development goals.