Food vs fuel debate may emerge again, fears edible oil industry
Global edible oil prices are rising, and industry leaders warn this could spark a renewed food vs fuel debate. Indonesia, a major palm oil exporter, is diverting significant volumes for biodiesel, reducing exportable surplus. This trend may pressure global supplies and raise concerns over food security and fuel priorities.
The bullish trend in global edible oil prices is likely to trigger a food versus fuel debate soon, said industry leaders at a global edible oil conference on Friday. Industry leaders from India’s largest palm oil trading partner, Indonesia, said while prices will remain stable around $1,000-1,100 per tonne, the country’s exportable surplus may reduce in the coming years mainly on diversion towards biodiesel.
“There may be another debate of food versus fuel soon, the way edible oil prices are rising globally and countries diverting vegetable oil for biodiesel programme may be under pressure from the global community,” said a panelist at the concluding day of the conference, organised by Indian Vegetable Oil Producers’ Association (IVPA) in New Delhi.
Speaking to businessline separately, Eddy Martono, Chairman of Indonesian Palm Oil Association (IPOA), said the domestic consumption of palm oil in Indonesia is estimated at 25-26 million tonnes (mt), including 15 mt diversion towards biodiesel, leaving a surplus of 25 mt as production is likely to be 50 mt. The palm oil export in 2024 was 29 mt, he said.
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Source : The Hindu Business line
