Archives of Current Research International

Oil palm cultivation offers a potential solution to reduce India's dependence on edible oil imports. This study investigates the profitability, water usage, and production trends of oil palm in central and south Gujarat, with a specific focus on unexplored areas. A purposive sampling technique was employed to select 60 oil palm cultivators in consultation with the Department of Horticulture. This targeted approach ensured data collection from representative farmers actively involved in cultivation. The analysis reveals promising profitability with a net return of Rs. 1,88,012.70 per hectare per year.  Economic viability is further supported by a Net Present Value (NPV) of Rs. 39,137.25 at 12 percent discount rate, a Benefit-Cost Ratio (BCR) of 1.64, and an Internal Rate of Return (IRR) of 26.70 percent. Payback period is estimated at 6 years. However, a major concern is the high water consumption, averaging 376.75 liters per day per tree. While water productivity is 0.88 kg/m3, sustainable water management practices are crucial for responsible cultivation. The study demonstrates that oil palm, with intercropping for the first three years, can be a profitable venture. However, water management strategies are essential for long-term sustainability.