India Palm Oil Crisis: India is already facing shortage in the supply of crude oil due to the outbreak of war in Iran and the blockade of the Strait of Hormuz. Now gradually the crisis of palm oil is also deepening.

India is the largest importer of palm oil in the world. India uses about 9.5 million tonnes of palm oil every year. At the same time, its production in the country is less than 400,000 tonnes. That means it imports all the oil it needs from abroad.

palm oil production

Palm oil comes from palm trees, which require frequent rainfall and a lot of water. There are a large number of palm trees in South-East Asia. To make palm oil, oil is extracted from these trees and then sent to the rest of the world. India also imports most of its palm oil from Indonesia and Malaysia.

Indonesia took a big decision

As already mentioned, India imports more than 90 percent of its palm oil needs, out of which almost half comes from Indonesia alone. Now Indonesia uses palm oil to make biodiesel (B50) domestically instead of exporting it. Due to this step of Indonesia, there is a possibility of reduction of 15-20 lakh tonnes of palm oil annually in the global market.

The price of which things will increase?

Along with cooking, palm oil is also used as a raw material in the production of many things. In such a situation, due to its shortage, the prices of many things will increase by 5-10 percent.

• Palm oil is used to create lather in soap and shampoo. Due to increase in its cost, pressure may increase on many companies like HUL and Godrej Consumer.
• It is used extensively in everything from lipstick to cream-lotion.
• It is also used extensively in baked and fried items like biscuits and chips. In such a situation, due to reduction in palm oil, products of companies like Parle and Britannia may become expensive.

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