What is the Land Ceiling Issue in Oil Palm Cultivation?
Contrary to the captive plantation in Malaysia, the Oil Palm is cultivated in small holdings in India. Land is a state subject in India and various state governments have passed the land reforms acts. Such acts restrict the size of land holdings by individual farmers and purchase of land by non-agriculturists. This land ceiling problem occurs with only Oil Palm because so far Oil palm has not been recognized in India as a plantation crop like tea, coffee and rubber. This means that large scale cultivation is not possible by private / firms / individuals because oil palm needs massive land to be cultivated in economically viable way. The logic of the states to limit palm coverage is that the corporations might take over large tracts of the land at the cost of other crops. This is an important reason as to why land ceiling laws don’t allow commercial cultivation of oil palm by private companies in India.