In recent news, the supreme edible oil industry associations from five key palm oil importing nations of Asia – India, Pakistan, Sri Lanka, Bangladesh, and Nepal – have united to establish the Asian Palm Oil Alliance (APOA). This inauguration took place during the Globoil Summit at Agra, India, which also marked its 25th anniversary in 2022. Recognised globally, the Globoil Summit serves as a renowned platform for Edible Oils and Agri Trade Conference, Exhibitions & Awards. The second meeting of APOA is predicted to occur in Indonesia in early 2023.
Purpose and Goals of the APOA
The principal goal of APOA includes protecting the economical and trade interests of countries consuming palm oil. The alliance plans to enhance the usage of palm oil throughout its member nations. It is determined to ensure palm oil’s recognition as a high-quality, cost-effective, and healthy vegetable oil and overturn its negative perception. In addition, APOA plans to broaden its membership further by including businesses or industry bodies connected with the production or refining of palm oil across Asia.
About Palm Oil and Its Consumption
Currently, palm oil acquires a significant status as the world’s most consumed vegetable oil. Its extensive use finds application in the manufacturing of detergents, plastics, cosmetics, and biofuels. Indonesia and Malaysia hold the lion’s share in global palm oil production, contributing almost 90%. Indonesia alone produced a staggering amount of over 45 million tonnes in 2021. On the consumption side, India, China, and the European Union (EU) top the chart.
India’s annual import of edible oil stands around 13-14 million tonne (MT), out of which approximately 8 MT of palm oil is imported from Indonesia and Malaysia. Other edible oils, including soya and sunflower, are imported from Argentina, Brazil, Ukraine, and Russia.
Asia is responsible for 40% of global palm oil consumption, while Europe contributes 12% to the palm oil trade.
Palm Oil Import and Export Dynamics
In terms of exporting, Indonesia and Malaysia take the lead as the largest palm oil exporters globally. The largest importer of palm oil in Asia is India, responsible for 15% of global imports. It’s followed by China (9%), Pakistan (4%), and Bangladesh (2%).
The UPSC Civil Services Examination Question on Palm Oil
A previous year’s question from the UPSC Civil Services Examination concerning ‘palm oil’ was: “The palm oil tree is native to Southeast Asia. The palm oil is a raw material for some industries producing lipstick and perfumes. The palm oil can be used to produce biodiesel. Which of the statements given above are correct? The options were: (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3. The correct answer was option (b).” This information was sourced from FE.