The Solvent Extractors' Association of India (SEA) plans to send a high-level delegation to Colombia early next year to explore palm oil sourcing, trade and cooperation, as India looks to widen its sources of edible oil.
A memorandum of understanding between SEA and Colombia's National Federation of Oil Palm Growers, Fedepalma, is also expected to be signed soon. The plan follows a meeting with a Colombian delegation on the sidelines of SEA's 55th annual general meeting and the 29th Globoil conference in Mumbai. The Colombian side was led by Victor Hugo Echeverri Jaramillo, Colombia's ambassador to India, and Nicolás Pérez Marulanda, executive president of Fedepalma.
The talks matter because Indonesia and Malaysia, the world's leading palm oil producers, are sending more of their palm oil to biodiesel, which could tighten the supply available for food. "With Indonesia and Malaysia moving increasingly towards higher biodiesel blending, more palm oil is likely to move from food to fuel. India has to look ahead and explore alternative and complementary sources of supply," said Dr B V Mehta, SEA's executive director.
Mehta said Colombia, with growing palm oil production and an exportable surplus, offers an opportunity for India. SEA members have already imported around 200,000 tonnes of crude palm oil from Colombia in recent times. Colombia produces around 2 million tonnes of palm oil a year and is the largest producer in Latin America.
"Their invitation to visit Colombia and explore opportunities of mutual benefit is a positive development. SEA is planning the delegation visit early next year," said Angshu Mallick, SEA's president.
The move comes as India has recently cut import duties on crude edible oils and domestic demand rises during the festive season. For SEA, the Colombia link is part of a wider plan to prepare for future supply problems and strengthen India's long-term edible oil security.
Photo: F3rn4nd0 / Wikimedia Commons (CC BY-SA 3.0)
Source: Rural Voice
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