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PALM OIL IN INDIA

9th November, 2024

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Picture Courtesy: https://agronfoodprocessing.com/indian-refiners-cancel-100000-metric-tons-of-palm-oil-purchases-amid-duty-hike-and-price-surge/

Context:

India's palm oil imports increased by 59% In October 2024 high due to strong festive demand.

About Palm Oil

Palm Oil

  • The oil palm tree is mostly grown in tropical areas.
  • It is derived from the African oil palm tree (Elaeis guineensis) fruits.
  • It is classified into two types: 
      • Crude palm oil (extracted from fruit pulp) used for cooking. 
      • Palm kernel oil (extracted from seed) used for non-food applications
  • Both oils are colourless, odourless, and tasteless.
  • It is the highest oil-yielding plant, producing up to 4-5 tons of palm oil and 0.4-0.5 tons of palm kernel oil per hectare by the age of 8-9 years, with a 30-year potential life span.
  • Palm oil yields about five times more than traditional oilseeds, making it an extremely efficient source of edible oil.

Common use

  • It is used in a variety of products, including packaged foods, cosmetics, detergents, soap, and ice cream. It is also used in the pharmaceutical and biofuel industries. 
  • It contains vitamins A and E, which are essential for maintaining healthy skin and immunity. It also contains antioxidants, which help the body fight free radical damage.

Import

  • India's palm oil imports increased by 59% from the previous month in October 2024 to reach 840,000 metric tons, from the previous month.
  • India is the world's largest importer and second-largest consumer of palm oil.
  • India mainly imports palm oil from Indonesia, Malaysia, and Thailand.
      • India imports soybean oil from Argentina, Brazil, Russia, and Ukraine, and sunflower oil mostly from Ukraine and Russia.

Steps to reduce imports

  • The Union Government has launched the National Mission on Edible Oils - Oil Palm (NMEO-OP) to increase domestic palm oil production by 2025-26.
      • It is a Centrally Sponsored Scheme that focuses on the Northeast region and the Andaman and Nicobar Islands.
      • Mizoram was the first state to start planting oil palm in the northeast.
  • Andhra Pradesh (83.5%) and Telangana account for around 97% of India crude palm oil production.

Top Producers

  • Indonesia (57% of global production) and Malaysia (26% of global production).

Concern 

  • Palm oil has a higher yield and lower production costs than many other vegetable oils, therefore its production and demand are rising rapidly worldwide, with plantations expanding throughout Asia, Africa, and Latin America.
  • Higher demand for Palm oil resulted in deforestation, habitat loss, soil erosion, and higher greenhouse gas emissions, therefore, it is important to implement sustainable palm oil practices to mitigate environmental impacts.

Way Forward 

  • Sustainable palm oil production helps to protect forests, wildlife, and ecosystems.
      • It ensures fair treatment and better working conditions for workers, increases accountability, and promotes transparency throughout the palm oil value chain. 
  • By implementing sustainable practices, the palm oil industry can benefit both the environment and society.

Must Read Articles: 

PALM OIL

National Mission on Edible Oil - Oil Palm (NEMO-OP)

Source: 

The Hindu

WWFINDIA

World Wild Life

PRACTICE QUESTION

Q.Consider the following statements in the context of Palm oil:

1. Palm oil offers a greater yield at a lower cost of production than other vegetable oils.

2. Palm kernel oil is used for non-edible purposes.

Which of the above statements is/are correct?

A) 1 only

B) 2 only

C) Both 1 and 2

D) Neither 1 nor 2

Answer: C

Explanation:

Statement 1 is correct:

Palm oil is a highly productive crop. It produces a much higher yield at a lower cost than other vegetable oils. It yields 4 to 10 times more oil per hectare than other sources of vegetable oil such as soybean, coconut, or sunflower oil. Palm oil production and demand are rapidly increasing around the globe. 

Statement 2 is correct:

Palm oil comes from the fruit of the African oil palm tree (Elaeis guineensis). It is classified into two types: crude palm oil (fruit pulp extract) and palm kernel oil (seed extract). Crude palm oil is mainly used for cooking, whereas palm kernel oil is used for non-edible applications due to its semi-solid state at room temperature.