PALM OIL IMPORTS -
AGRICULTURE
News: India's May Palm oil imports
jump 74 pc on rising demand
What's in the news?
●
India's palm oil imports surged 74 percent to 7,63,300 tonnes in May this year from 4,39,173 tonnes in the year-ago period, as the world's
largest vegetable oil buyer stocked up the commodity to meet rising domestic
demand, according to the industry body Solvent Extractors Association (SEA).
Key takeaways:
●
The total
vegetable oil imports rose to 15.29 lakh tonnes in May this year from 10.58
lakh tonnes in May 2023, it added.
●
Palm oil constitutes a major part of imports.
○
Crude palm oil (CPO) imports rose to 5,32,555 tonnes in May this
year from 3,48,118 tonnes in the year-ago period, while RBD Palmolein imports
surged to 2,25,746 tonnes from 85,205 tonnes. However, Crude Palm Kernel Oil
(CPKO) imports fell to 4,999 tonnes from 5,850 tonnes a year earlier.
●
Sunflower oil imports climbed to 4,10,727 tonnes
from 2,95,206 tonnes, and soybean oil rose to 3,24,016 tonnes from 3,18,887
tonnes.
Palm Oil:
●
Palm oil has become an essential component in
India’s edible oil sector due to its affordability
and high yield potential.
●
Presently, India
imports nearly 65% of its cooking oil needs.
Top Producers of Palm
Oil:
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Indonesia
●
Malaysia
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Thailand
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Colombia
Top Importers of Palm
Oil:
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India - 23% of the world imports ($11.7 billion)
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China
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Pakistan
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USA
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Netherlands
Nutrient Content in Palm
Oil:
●
Palm oil contains a variety of fats. While it
contains saturated fats, which can elevate
LDL (“bad”) cholesterol, it also includes monounsaturated and
polyunsaturated fats, which are better for the health of an individual.
○
According to studies, palm oil may elevate LDL
cholesterol, but not to the same extent as trans fat.
○
However, a hidden benefit is its potential to increase HDL (“good”)
cholesterol, which aids in the removal of LDL cholesterol from the
bloodstream, improving heart health.
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Palm oil contains vitamins A and E, which are necessary for immunity and healthy
skin.
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It also contains antioxidants, which combat free radical damage in the body.
Government Measures to
Boost Oil Palm Farming in India:
●
The government has initiated the National Mission on Edible Oils – Oil Palm
(NMEO-OP) to reduce dependence on imported oils.
○
The aim is to produce 2.8 mt of Crude Palm Oil by
2030.
●
In India, farmers handle the cultivation of palm
trees, while businesses take care of processing and marketing. This ensures
that farmers focus on growing the best quality palm while businesses can
optimize the processing and distribution.
Benefits of Oil Palm
Farming in India:
1. High Yield:
●
Palm oil gives a higher yield compared to
traditional crops, making it more lucrative for farmers.
2. Economic Impact:
●
India spends about ₹1.56 trillion on oil imports
yearly, which can be reduced with increased domestic production.
Challenges:
1. Environmental
Concerns:
●
Large-scale farming can impact local biodiversity
and water resources.
2. Viability Gap Price
(VGP):
● It is a price protection offered to farmers which might prove inadequate in certain scenarios.