Palm oil is turning into fuel—and India’s import bill could rise
India faces rising edible oil supply risks as Indonesia and Malaysia divert more palm oil toward biodiesel programmes to reduce fossil fuel dependence. Since India relies heavily on imported palm oil due to limited domestic production, tighter global supplies could increase food inflation and import vulnerability.
Even as India grapples with oil and gas supply concerns arising from the West Asia war, another pressure point may be emerging in edible oils.
Indonesia and Malaysia, the world’s largest palm oil exporters, are increasingly diverting supplies to biodiesel blending programmes to reduce dependence on fossil fuels. This has implications for India, where domestic edible oil production is insufficient to meet demand, and palm oil accounts for the largest share of imports due to its lower cost. Any tightening of global supplies could add to food inflationary pressures and widen import vulnerability.
Global grip
Palm oil is among the world’s most consumed edible oils due to its low cost, high yield and wide use across food and industrial applications, including cooking oils, processed foods, bakery products and cosmetics. It is also far more productive per hectare than competing oilseeds such as soybean or sunflower, making it cheaper in global markets.
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Source : Mint
