Understanding the Asian Palm Oil Alliance

The Asian Palm Oil Alliance (APOA) was established by the Apex Solvent Extractors Association from five South Asian nations – India, Bangladesh, Nepal, Pakistan, and Sri Lanka.

• The APOA was officially announced at the Globoil Summit held in Agra in September 2022.
• The alliance plans to extend its membership to industries and companies engaged in the production or refining of palm oil across the continent.
• The Solvent Extractors Association (SEA) of India will initially manage the APOA Secretariat.
• At the inaugural general body meeting, Atul Chaturvedi, Director of Adani Wilmar Ltd and the President of SEA, was elected as the first chairperson of the APOA.
• The next APOA meeting is tentatively scheduled to take place in Indonesia in early 2023.

Objectives of the Asian Palm Oil Alliance

The establishment of the APOA aims to protect the business interests of palm-oil-consuming countries and ensure fair competition for all fats and oils used in food, feed, and oleo-chemicals in Asia. Furthermore, it strives to promote the consumption of sustainable palm oil in member countries.

• A key objective behind the creation of APOA is to strengthen the bargaining power of palm oil importing countries and sustain imports.
• The alliance aims to ensure that palm oil is recognized as a high-quality, affordable, and healthy vegetable oil, thereby reversing its negative image.
• The APOA will empower numerous Asian countries where palm oil serves as a source of affordable food and nutrition.
• It is anticipated that APOA will emerge as a crucial forum to address the common problems, interests, and aspirations of the global palm oil industry.

Palm Oil Imports

• Indonesia and Malaysia collectively contribute to nearly 90% of the world's palm oil production. Other oils such as soya and sunflower are imported from Argentina, Ukraine, Brazil, and Russia.
• Asia accounts for approximately 40% of the global palm oil consumption, while Europe constitutes 12% of the palm oil trade.
• India is the leading importer of palm oil in Asia, accounting for 15% of global imports. It is followed by China with 9%, Pakistan with 4%, and Bangladesh with 2%.

About Palm Oil

• Palm oil is obtained from the oil palm tree, which is native to West Africa and thrives in tropical climates with abundant water.
• It is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of oil palms.
• Palm oil is used in a variety of products, including food, beauty products, and biofuel.
• Due to its resistance to oxidation, palm oil extends the shelf life of products.

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