Context: India’s imports of palm oil rose in December because of competitive prices of palm oil.
About Palm Oil
Edible vegetable oil that comes from the fruit of oil palm trees. Native to West Africa and grows best in Tropical climate with abundant water. It has highest vegetable oil yielding capability per ha. Two types of oil can be produced; crude palm oil comes from squeezing the fleshy fruit, and palm kernel oil which comes from crushing the kernel, or the stone in the middle of the fruit.
PROPERTIES OF PALM OIL
- Semi-solid at room temperature.
- Resistant to oxidation and hence can provide longer shelf life to products
- Stable at high temperature and hence can provide crispy and crunchy texture to fried products
- Odourless and colourless and hence does not affect the colour or smell of food products.
Uses of Palm Oil:
Vegetable oil in food; Processed foods such as doughnuts, chocolate, pizza etc.; Consumer goods such as Deodorants, shampoos, toothpaste, lipstick etc.; animal feed and biofuel in some countries.
Global Production: Around 85% of Palm oil production comes from Indonesia and Malaysia followed by Thailand, Columbia and Nigeria.
Domestic Production:
Total cultivation- 3 Lakh hectares (2019); Production- 3 lakh tonnes;
Largest producers: Andhra Pradesh, Telangana and Kerala are major oil growing states accounting for 98% of production.
Demand-Supply Mismatch of Palm oil: Palm oil accounts for 60% of the imported edible oils. Almost 99% of Palm oil requirements are imported.