NALGONDA, TELANGANA, 12/06/2025: (For Spotlight: Pandilla Laxmareddy and Sridhar P’s story on Oil Palm tree): Oil palm farmer G.Srider Reddy showing the Oil palm cultivation at his four-year-old oil palm tree plantation in Dandempalli Village in Nalgonda district on Thursday, June 12, 2025. Photo: NAGARA GOPAL / The Hindu | Photo Credit: NAGARA GOPAL

The Asian Palm Oil Alliance (APOA), the Council of Palm Oil Producing Countries (CPOPC) and Solidaridad Network Asia Limited (SNAL) have signed a tripartite Memorandum of Understanding (MoU) in Mumbai to strengthen collaboration between producers and consumers and accelerate sustainability in the palm oil value chain, with a special focus on India and South Asia.

CPOPC will act as a catalyst and advocate for sustainable palm oil, while the partners pursue alignment among national frameworks including Indonesia Sustainable Palm Oil (ISPO), Malaysian Sustainable Palm Oil (MSPO) and the Indian Palm Oil Sustainability (IPOS) framework. The MoU also places emphasis on regenerative practices.

To ensure stability of supply for over 1.5 billion consumers in South Asia, the parties will promote traceable, smallholder-inclusive and NDPE-compliant sourcing, supported by pilots using Solidaridad’s SoliTrace digital traceability tool and complementary remote-sensing technologies. These pilots will provide mill-to-market visibility and importer-facing dashboards tailored to Indian buyers.

Raising supplies

The MoU also provides for the creation of a Joint Working Group, co-chaired by APOA and CPOPC, with Solidaridad as the Technical Secretariat. The group will oversee workplans, monitor progress and coordinate joint advocacy and communication efforts. The MoU is valid for three years. To ensure delivery, joint working groups will implement and monitor the areas of cooperation.

The collaboration is expected to enhance supply stability and market confidence, expand sustainability training and financing opportunities for smallholders, build trust through digital traceability, and promote coherent policy positions in global platforms, including options for Indian public procurement to reference sustainability criteria.

Sanjeev Asthana, President of SEA, said the partnership was an important step in deepening India’s engagement with Indonesia and other Asian partners. The MoU will strengthen India’s access to affordable, high-quality palm oil while enabling Indian stakeholders to benefit from Indonesia’s expertise in sustainable palm oil production. It will also create opportunities for trade and technical cooperation that bring greater stability to India’s edible oil sector, he said.

“At a time when food security and price stability are front of mind for families and businesses across South Asia, this partnership gives producers and consumers a formal table to strengthen collaboration and foster mutual understanding in addressing shared challenges.” said Atul Chaturvedi, Chairman, APOA.

60% of demand via import

“By working with producing countries, we can build informed awareness that encourages responsible choices and strengthens health outcomes, economic resilience and environmental stewardship.” said Dr B. V. Mehta, Executive Director, Solvent Extractors’ Association of India.

“This collaboration signals our collective commitment to a responsible palm oil production and consumption for a long-term market confidence,” said Izzana Salleh, Secretary General of CPOPC.

India meets over 60 per cent of its edible oil demand through imports, with Indonesia consistently serving as its largest supplier of palm oil for more than a decade. India’s palm oil imports rose nearly 16 per cent to 9.9 lakh tonnes in August 2025 - the highest in over a year - highlighting its role in meeting India’s edible oil needs.

In this context, the MoU between SEA, APOA and IPOA aims to deepen economic ties, support responsible growth, and ensure more stable palm oil supply chain across the region.

Published on September 24, 2025