PALM OIL - AGRICULTURE

News: India's palm oil imports rose 29% in Nov.-Sept. of 2022-23 oil year: SEA

 

What's in the news?

       India's palm oil imports jumped 29.21% to 90.80 lakh tonne in the first 11 months of the ongoing 2022–23 oil year compared with the year-earlier period, with RBD Palmolien shipments rising fast, posing a serious threat to the domestic refiners.

 

Key takeaways:

       India, the world's leading vegetable oil buyer, imported 70.28 lakh tonnes of palm oil products during the same period in the previous oil year.

       India imports palm oil mainly from Indonesia and Malaysia and a small quantity of crude soft oil, including soybean from Argentina. Sunflower oil is imported from Ukraine and Russia.

 

Palm Oil:

       Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of the oil palms.

       Along with coconut oil, palm oil is one of the few highly saturated vegetable fats and is semisolid at room temperature.

 

Features:

       It is resistant to oxidation and so can give products a longer shelf-life; it’s stable at high temperatures.

       It is used in food manufacturing, in beauty products and as biofuel.

       Its use in the commercial food industry in other parts of the world is widespread because of its lower cost.

       Virgin palm oil is rich in carotenoids (pro Vitamin A), tocotrienols and tocopherols (Vitamin E).

 

Producers:

Top Producers:

       Indonesia

       Malaysia

       Thailand

 

Importers:

       India

       European Union

       China

 

India and Palm Oil:

       In India, oil palm is being cultivated in 13 states. Potential states are Andhra Pradesh, Gujarat, Karnataka, Tamil Nadu and Bihar.

       Andhra Pradesh (83.5 percent) along with Telangana accounts for about 97 percent of India's 278,000 tonnes of crude palm oil production.

 

National Mission on Edible Oils – Oil Palm (NMEO-OP):

       It is a Centrally Sponsored Scheme with a special focus on the Northeast region and the Andaman and Nicobar Islands. 

       The Mission hopes to increase oil palm acreage by an additional 6.5 lakh hectares by 2025-26 and grow production of crude palm oil to 11.2 lakh tonnes by 2025-26 and up to 28 lakh tonnes by 2029-30.

       The proposed scheme will subsume the current National Food Security Mission-Oil Palm programme.

 

Focus area:

       The oil palm farmers produce Fresh Fruit Bunches (FFBs) from which oil is extracted by the industry. Presently the prices of these FFBs are linked to the international Crude Palm Oil (CPO) prices fluctuations. 

       Viability Price (VP): For the first time, the Government of India will give price assurance to the oil palm farmers for the FFBs in the form of the Viability Price (VP).