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7.3 PALM OIL — ENVIRONMENTAL


ISSUES AND INDIA’S ROLE IN IT

When forest shrink, so does the home of endangered species


Palm oil has emerged as the main global source of vegetable oil due to adequate availability, versatility in usage, higher yield and lower cost, as compared to other vegetable oils. Palm oil is generally sold in the name of vegetable oil. Palm oil forms 33% of the world vegetable oil production mix. Indonesia and Malaysia contribute almost 87% of production of palm oil, whereas China and India constitute 34% of imports.

Global edible oil consumption has grown from 123 Million Metric tonnes in 2007 to 158 Mn MT in 2012. This growth has been fuelled by increased population, incomes and per capita consumption especially in developing countries like India, Indonesia and China, etc. Palm oil, at 48.7 Mn MT is the largest consumed edible oil in the world.

As demand for palm oil increases, substantial tracts of tropical forests are often cleared to make room for large plantations. As per WWF’s estimates, the expansion of oil palm plantations is likely to cause four million hectares (more than twice the size of Kerala) of forest loss by 2020. Deforestation would most likely occur in high biodiversity areas, such as Borneo, Papua New Guinea, Sumatra and the Congo Basin in Africa. The felling and burning of forests impact populations of endangered wildlife such as Sumatran Tigers, Rhinos and Orangutans. It also has adverse impacts on people’s health and disrupts local livelihoods.

At the global level, the impacts of forest loss are even more dramatic, including the release of greenhouse gases into the atmosphere that contribute to global warming.

Applications of Palm Oil


1) Food based applications


Cooking oil, substitute for butter, vanaspati/vegetable ghee, margarine, confectionary and bakery fats, ice cream, coffee creamers, emulsifiers, vitamin E supplements among others.

2) Non-food applications


Cosmetics, toiletries, soaps and detergents. Oleo chemical industry, as a base material for laundry detergents, household cleaners and cosmetics.

According to USDA estimates, 75% of the global palm oil consumption is for food purposes, while 22% is for indus-trial/non-food purposes. The remaining, though currently, of marginal quantity, is used for biodiesel


 

ENVIRONMENTAL IMPACTS OF PALM OIL PRODUCTIONINDIA and OIL PALMPalm oil in India - ProductionState-wise Palm Oil Production in IndiaPolicies Related to Production and Distribution of Palm Oil Subsidies for distribution of imported palm oil:RSPO impact