Recent news reports show palm oil production-side challenges and supply chain disruptions in the wake of the COVID-19 global pandemic, which are set to significantly impact prices and/or volumes available in India as well. Due to its versatility in the kitchen and comparatively cheap prices, palm oil form the bulk of India vegetable oils sector and indeed the edible oils market as well, with the relatively inelastic demand (wherein the demand is not determined by the prices) of palm oil in the short run.
Palm oil production in Indonesia, the world’s top palm producing nation, and main exporter to India, was expected to fall drastically, according to a US Department of Agriculture attaché in Jakarta. Malaysia had also temporary shuttered plantations and factories in three districts of the Sabah area after seven workers tested positive for the COVID-19 virus.
In India, palm oil consumption has drastically increased by almost 230% over the last two decades. Click on the link below to find out more about the palm oil market in India and the need for private sustainability governance with progressive multinationals with global commitments.