Headline News on Palm Oil. February 2022
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Read curated news that impacts the global palm oil industry.
CSPO Watch News. Making it easy for you to follow the palm oil industry
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Palm oil becomes costliest vegoil as Ukraine war halts sunoil supply
MUMBAI, March 1 (Reuters) - Palm oil has become the costliest among the four major edible oils for the first time as buyers rush to secure replacements for sunflower oil shipments from the top exporting Black Sea region that were disrupted by Russia's invasion of Ukraine.
Palm oil's record premium over rival oils could squeeze price-sensitive Asian and African consumers already reeling from spiralling fuel and food costs, and force them to curtail consumption and shift to rival soyoil , dealers said.
Crude palm oil (CPO) is being offered at about $1,925 a tonne, including cost, insurance and freight (CIF), in India for March shipments, compared with $1,865 for crude soybean oil.
Crude rapeseed oil was offered at around $1,900, while traders were not offering crude sunflower oil as ports are closed due to the Ukraine crisis.
Reuters
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Malaysian palm oil orders surge as buyers cover for shortfall in Ukraine sunflower oil
Anxious Indian buyers, with no clarity on sunflower oil shipments out of Ukraine, are turning to crude palm oil from Malaysia to fulfill demand ahead of month-long Ramadan which starts in early April, industry sources told S&P Global Platts.
"Panic at destinations specially at India about the supply chain is resulting in buyers looking to cover oil from every source and the asked price," Vivek Pathak, managing director of India-based trading house Athena Tradewinds, which deals predominantly in sunflower oil said in a Feb. 28 note.
Last month, 500,000 mt of sunflower oil was expected to leave Ukraine and the March line up so far is also around 450,000 mt, of which India buys roughly 250,000 mt each month, Pathak said.
Buyers are currently not placing new orders for Ukrainian sunflower oil as they have not been able to track their shipments since Russia invaded Ukraine on Feb. 24, sources said.
S&P Global
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Cameroon - Satisfied Producer of Palm Oil in DRC Has Been “Brought Back from the Brink,” DFIs Sell Debt Holdings in PHC to Maku; Funding to Improve Community Relationships Will Continue
Four European development finance institutions (DFIs) recently sold their debt holdings in Plantations et Huileries du Congo (PHC), a palm oil business in Democratic Republic of the Congo, to Maku Holdings, an affiliate of Kuramo Capital Management, which has offices in Kenya, Nigeria and the US. The DFIs are the Belgian Investment Company for Developing Countries (BIO), the UK-based CDC Group, Deutsche Investitions-und Entwicklungsgesellschaft (DEG) and Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO).
The DFIs began investing in PHC between 2013 and 2015 out of concern that the firm would fail and thus deprive the country of thousands of jobs and a significant source of cooking oil. They since have concluded that PHC “has been brought back from the brink of collapse.” To acquire the DFI funding, the firm agreed to be bound by an Environmental and Social Action Plan (ESAP), and the firm has spent USD 7 million since then on access to clean water as well as education and medical services. Based on complaints filed via DEG and FMO in 2018, a group of PHC’s neighbors acquired funding for mediation regarding the ongoing impact of PHC’s practices on human rights and other social concerns. Both the ESAP and the mediation process are to continue into the future, the latter with additional funding from DEG and FMO.
The goal of BIO is to “inves[t] in small and medium-sized enterprises, financial institutions, and infrastructure projects, contributing to socio-economic growth in developing countries.” As of 2020, it reports a portfolio of 144 investments, with total assets valued at EUR 1.1 billion (USD 1.2 billion).
Micro Capital
MUMBAI, March 1 (Reuters) - Palm oil has become the costliest among the four major edible oils for the first time as buyers rush to secure replacements for sunflower oil shipments from the top exporting Black Sea region that were disrupted by Russia's invasion of Ukraine.
Palm oil's record premium over rival oils could squeeze price-sensitive Asian and African consumers already reeling from spiralling fuel and food costs, and force them to curtail consumption and shift to rival soyoil , dealers said.
Crude palm oil (CPO) is being offered at about $1,925 a tonne, including cost, insurance and freight (CIF), in India for March shipments, compared with $1,865 for crude soybean oil.
Crude rapeseed oil was offered at around $1,900, while traders were not offering crude sunflower oil as ports are closed due to the Ukraine crisis.
Reuters
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Malaysian palm oil orders surge as buyers cover for shortfall in Ukraine sunflower oil
Anxious Indian buyers, with no clarity on sunflower oil shipments out of Ukraine, are turning to crude palm oil from Malaysia to fulfill demand ahead of month-long Ramadan which starts in early April, industry sources told S&P Global Platts.
"Panic at destinations specially at India about the supply chain is resulting in buyers looking to cover oil from every source and the asked price," Vivek Pathak, managing director of India-based trading house Athena Tradewinds, which deals predominantly in sunflower oil said in a Feb. 28 note.
Last month, 500,000 mt of sunflower oil was expected to leave Ukraine and the March line up so far is also around 450,000 mt, of which India buys roughly 250,000 mt each month, Pathak said.
Buyers are currently not placing new orders for Ukrainian sunflower oil as they have not been able to track their shipments since Russia invaded Ukraine on Feb. 24, sources said.
S&P Global
---
Cameroon - Satisfied Producer of Palm Oil in DRC Has Been “Brought Back from the Brink,” DFIs Sell Debt Holdings in PHC to Maku; Funding to Improve Community Relationships Will Continue
Four European development finance institutions (DFIs) recently sold their debt holdings in Plantations et Huileries du Congo (PHC), a palm oil business in Democratic Republic of the Congo, to Maku Holdings, an affiliate of Kuramo Capital Management, which has offices in Kenya, Nigeria and the US. The DFIs are the Belgian Investment Company for Developing Countries (BIO), the UK-based CDC Group, Deutsche Investitions-und Entwicklungsgesellschaft (DEG) and Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO).
The DFIs began investing in PHC between 2013 and 2015 out of concern that the firm would fail and thus deprive the country of thousands of jobs and a significant source of cooking oil. They since have concluded that PHC “has been brought back from the brink of collapse.” To acquire the DFI funding, the firm agreed to be bound by an Environmental and Social Action Plan (ESAP), and the firm has spent USD 7 million since then on access to clean water as well as education and medical services. Based on complaints filed via DEG and FMO in 2018, a group of PHC’s neighbors acquired funding for mediation regarding the ongoing impact of PHC’s practices on human rights and other social concerns. Both the ESAP and the mediation process are to continue into the future, the latter with additional funding from DEG and FMO.
The goal of BIO is to “inves[t] in small and medium-sized enterprises, financial institutions, and infrastructure projects, contributing to socio-economic growth in developing countries.” As of 2020, it reports a portfolio of 144 investments, with total assets valued at EUR 1.1 billion (USD 1.2 billion).
Micro Capital
Malaysia - Palm oil to get support from conflict-induced supply disruptions
THE Ukraine-Russia conflict is set to help keep crude palm oil (CPO) prices at historic highs for a longer period as the edible oil market faces a sharper squeeze while the price trends attract more directional trading interest.
The benchmark CPO futures (FCPO) contract hit a historic high of RM6,465 a tonne last week on the breakout of war in Ukraine, but profit-taking last Friday saw the contract end the week at RM5,984 a tonne ahead of the weekend on heavy volumes.
Market watchers believe the price could retest the highs again this week as weather concerns and fears of cuts in supply of wheat and sunflower oil from Russia and Ukraine leave traders chasing up substitutes.
Disruptions of supplies of products like wheat and sunflower seed oil from the Black Sea Ports and trade restrictions on Russia could trigger another rally in FCPO as producers such as animal feed makers are forced to buy alternatives like soymeal which could lower crushing and soy oil supplies.
The Malaysian Reserve
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India - Russia-Ukraine Crisis: Conflict hits sunflower oil imports; industry weighs options in other countries
India imports 25 lakh tonne of sunflower oil annually, of which 70 per cent comes from Ukraine, 20 per cent from Russia and 10 per cent from Argentina.
New Delhi: With imports of sunflower oil getting affected due to the conflict between Ukraine and Russia, industry body SEA on Saturday said it is weighing options to source cooking oils from other countries to maintain domestic supply and keep retail prices under check.
Industry players expect prices of cooking oils to remain stable as the supply of domestic mustard oil will improve from next month. Harvesting of mustard seeds crop is about to start.
India's total imports of edible oils surged to a record Rs 1.17 lakh crore in 2020-21 marketing year (November to October) from nearly Rs 72,000 crore in the previous year due to a sharp rise in global prices.
In terms of volume, the imports were stable at 130 lakh tonne.
First Post
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India - State government increases subsidies for oil palm cultivation
VIJAYAWADA: To encourage the cultivation of oil palm, the Andhra Pradesh government has increased the subsidies for the components and inputs for oil palm cultivation from February 2022.
The State stands first in the country in oil palm cultivation with an area of 1.81 lakh hectares, cultivated by 1.32 lakh farmers in eight districts.
The average productivity of oil palm plantations is 19.81 tonnes FFB (fresh fruit bunches) per hectare. In 2020-21, the state produced 2.40 lakh tonnes of crude palm oil. There are 13 oil palm processing units in the State with a crushing capacity of 461 metric tonnes of FFBs per hour.
New Indian Express
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India - Traders start contracting deals for import of 50,000 tonne of soy, palm oil each
Indian traders are in the process of contracting deals for the import of 50,000 tonne of soy oil and 50,000 tonne of palm oil with reports of shipment delays of sunoil, following Russia’s invasion of Ukraine, according to industry people.
“Traders are not rushing in too much because they believe the situation with Russia and Ukraine may ease within the next 15 days. Stabilisation, local operations of seed plants and transportation should begin soon. India is wanting the oil but is waiting to see how the situation develops in the next 15 days,” Sandeep Bajoria, president of the International Sunflower Oil Association.
Financial Express
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EU: Disappointing Draft on Corporate Due Diligence
(Brussels) – The European Commission’s new corporate due diligence proposal needs significant improvements to prevent and address human rights abuses and environmental harm, including in companies’ global supply chains, Human Rights Watch said today. The bill is under the scrutiny of the European Parliament and Council, as co-legislators are tasked with amending and eventually adopting the final text.
Legislators should ensure that the proposed directive covers more small and medium-size companies and extends due diligence requirements to all businesses in their supply chains, in line with international norms on business and human rights. Responsible purchasing and responsible disengagement (the process for ceasing business relations), which are not yet explicitly referenced in the proposal, should be at the heart of due diligence.
Human Rights Watch
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India - Andhra Pradesh sets sights on oil palm cultivation
AMARAVATI: State government has decided to increase the oil palm cultivation by replacing the paddy under borewells, tobacco, subabul, and eucalyptus to benefit the farmers. Cultivation of oil palm will be encouraged in all the dry lands to bring additional area into agriculture activity. The government is of the view that the oil palm is the best suitable alternative for the farmers struggling after cultivating non-profitable eucalyptus, subabul and even tobacco.
State government is also facing trouble following protests from the farmers seeking intervention to get reasonable prices for subabul and eucalyptus sticks by the paper manufacturing factories. Farmers are unable to sell the sticks even after the intervention by the government on many occasions.
Times of India
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India - State government increases subsidies for oil palm cultivation
The State stands first in the country in oil palm cultivation with an area of 1.81 lakh hectares, cultivated by 1.32 lakh farmers in eight districts.
VIJAYAWADA: To encourage the cultivation of oil palm, the Andhra Pradesh government has increased the subsidies for the components and inputs for oil palm cultivation from February 2022.
The State stands first in the country in oil palm cultivation with an area of 1.81 lakh hectares, cultivated by 1.32 lakh farmers in eight districts.
The average productivity of oil palm plantations is 19.81 tonnes FFB (fresh fruit bunches) per hectare. In 2020-21, the state produced 2.40 lakh tonnes of crude palm oil. There are 13 oil palm processing units in the State with a crushing capacity of 461 metric tonnes of FFBs per hour.
According to minister for agriculture Kurasala Kanna Babu, in order to encourage oil palm on a large scale, a new Centrally sponsored National Mission on Edible Oils-Oil Palm (NMEO-OP) scheme has been launched.
New Indian Express
---
India - Oil Industry Weighs Options To Import Edible Oils From Other Countries Amid Russia-Ukraine Crisis
Industry players expect prices of cooking oils to remain stable as the supply of domestic mustard oil will improve from next month. Harvesting of mustard seeds crop is about to start.
With imports of sunflower oil getting affected due to the conflict between Ukraine and Russia, industry body SEA on Saturday said it is weighing options to source cooking oils from other countries to maintain domestic supply and keep retail prices under check.
Industry players expect prices of cooking oils to remain stable as the supply of domestic mustard oil will improve from next month. Harvesting of mustard seeds crop is about to start.
"Supply of sunflower oil has got disrupted because of conflict between Russia and Ukraine. India imports 25 lakh tonnes of sunflower oil annually, of which 70 per cent comes from Ukraine, 20 per cent from Russia, and 10 per cent from Argentina," Solvent Extractors' Association (SEA) Executive Director B V Mehta told PTI. Outlook India
THE Ukraine-Russia conflict is set to help keep crude palm oil (CPO) prices at historic highs for a longer period as the edible oil market faces a sharper squeeze while the price trends attract more directional trading interest.
The benchmark CPO futures (FCPO) contract hit a historic high of RM6,465 a tonne last week on the breakout of war in Ukraine, but profit-taking last Friday saw the contract end the week at RM5,984 a tonne ahead of the weekend on heavy volumes.
Market watchers believe the price could retest the highs again this week as weather concerns and fears of cuts in supply of wheat and sunflower oil from Russia and Ukraine leave traders chasing up substitutes.
Disruptions of supplies of products like wheat and sunflower seed oil from the Black Sea Ports and trade restrictions on Russia could trigger another rally in FCPO as producers such as animal feed makers are forced to buy alternatives like soymeal which could lower crushing and soy oil supplies.
The Malaysian Reserve
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India - Russia-Ukraine Crisis: Conflict hits sunflower oil imports; industry weighs options in other countries
India imports 25 lakh tonne of sunflower oil annually, of which 70 per cent comes from Ukraine, 20 per cent from Russia and 10 per cent from Argentina.
New Delhi: With imports of sunflower oil getting affected due to the conflict between Ukraine and Russia, industry body SEA on Saturday said it is weighing options to source cooking oils from other countries to maintain domestic supply and keep retail prices under check.
Industry players expect prices of cooking oils to remain stable as the supply of domestic mustard oil will improve from next month. Harvesting of mustard seeds crop is about to start.
India's total imports of edible oils surged to a record Rs 1.17 lakh crore in 2020-21 marketing year (November to October) from nearly Rs 72,000 crore in the previous year due to a sharp rise in global prices.
In terms of volume, the imports were stable at 130 lakh tonne.
First Post
---
India - State government increases subsidies for oil palm cultivation
VIJAYAWADA: To encourage the cultivation of oil palm, the Andhra Pradesh government has increased the subsidies for the components and inputs for oil palm cultivation from February 2022.
The State stands first in the country in oil palm cultivation with an area of 1.81 lakh hectares, cultivated by 1.32 lakh farmers in eight districts.
The average productivity of oil palm plantations is 19.81 tonnes FFB (fresh fruit bunches) per hectare. In 2020-21, the state produced 2.40 lakh tonnes of crude palm oil. There are 13 oil palm processing units in the State with a crushing capacity of 461 metric tonnes of FFBs per hour.
New Indian Express
---
India - Traders start contracting deals for import of 50,000 tonne of soy, palm oil each
Indian traders are in the process of contracting deals for the import of 50,000 tonne of soy oil and 50,000 tonne of palm oil with reports of shipment delays of sunoil, following Russia’s invasion of Ukraine, according to industry people.
“Traders are not rushing in too much because they believe the situation with Russia and Ukraine may ease within the next 15 days. Stabilisation, local operations of seed plants and transportation should begin soon. India is wanting the oil but is waiting to see how the situation develops in the next 15 days,” Sandeep Bajoria, president of the International Sunflower Oil Association.
Financial Express
---
EU: Disappointing Draft on Corporate Due Diligence
(Brussels) – The European Commission’s new corporate due diligence proposal needs significant improvements to prevent and address human rights abuses and environmental harm, including in companies’ global supply chains, Human Rights Watch said today. The bill is under the scrutiny of the European Parliament and Council, as co-legislators are tasked with amending and eventually adopting the final text.
Legislators should ensure that the proposed directive covers more small and medium-size companies and extends due diligence requirements to all businesses in their supply chains, in line with international norms on business and human rights. Responsible purchasing and responsible disengagement (the process for ceasing business relations), which are not yet explicitly referenced in the proposal, should be at the heart of due diligence.
Human Rights Watch
---
India - Andhra Pradesh sets sights on oil palm cultivation
AMARAVATI: State government has decided to increase the oil palm cultivation by replacing the paddy under borewells, tobacco, subabul, and eucalyptus to benefit the farmers. Cultivation of oil palm will be encouraged in all the dry lands to bring additional area into agriculture activity. The government is of the view that the oil palm is the best suitable alternative for the farmers struggling after cultivating non-profitable eucalyptus, subabul and even tobacco.
State government is also facing trouble following protests from the farmers seeking intervention to get reasonable prices for subabul and eucalyptus sticks by the paper manufacturing factories. Farmers are unable to sell the sticks even after the intervention by the government on many occasions.
Times of India
---
India - State government increases subsidies for oil palm cultivation
The State stands first in the country in oil palm cultivation with an area of 1.81 lakh hectares, cultivated by 1.32 lakh farmers in eight districts.
VIJAYAWADA: To encourage the cultivation of oil palm, the Andhra Pradesh government has increased the subsidies for the components and inputs for oil palm cultivation from February 2022.
The State stands first in the country in oil palm cultivation with an area of 1.81 lakh hectares, cultivated by 1.32 lakh farmers in eight districts.
The average productivity of oil palm plantations is 19.81 tonnes FFB (fresh fruit bunches) per hectare. In 2020-21, the state produced 2.40 lakh tonnes of crude palm oil. There are 13 oil palm processing units in the State with a crushing capacity of 461 metric tonnes of FFBs per hour.
According to minister for agriculture Kurasala Kanna Babu, in order to encourage oil palm on a large scale, a new Centrally sponsored National Mission on Edible Oils-Oil Palm (NMEO-OP) scheme has been launched.
New Indian Express
---
India - Oil Industry Weighs Options To Import Edible Oils From Other Countries Amid Russia-Ukraine Crisis
Industry players expect prices of cooking oils to remain stable as the supply of domestic mustard oil will improve from next month. Harvesting of mustard seeds crop is about to start.
With imports of sunflower oil getting affected due to the conflict between Ukraine and Russia, industry body SEA on Saturday said it is weighing options to source cooking oils from other countries to maintain domestic supply and keep retail prices under check.
Industry players expect prices of cooking oils to remain stable as the supply of domestic mustard oil will improve from next month. Harvesting of mustard seeds crop is about to start.
"Supply of sunflower oil has got disrupted because of conflict between Russia and Ukraine. India imports 25 lakh tonnes of sunflower oil annually, of which 70 per cent comes from Ukraine, 20 per cent from Russia, and 10 per cent from Argentina," Solvent Extractors' Association (SEA) Executive Director B V Mehta told PTI. Outlook India
ConsumerGoodsForum - Three Reasons Why Tackling Deforestation Is a Business Priority in 2022 and How to Prepare
With new regulations, investor pressure, and disclosure requirements coming online, deforestation is a challenge that consumer goods companies can no longer afford to ignore. Fortunately, there is a clear path that can help all companies prepare.
For some consumer brands, deforestation linked to palm oil, cocoa, beef, wood fibre, and other commodities has posed reputational risk and been a focus of sustainability initiatives for years. The 21 members of The Consumer Goods Forum’s own Forest Positive Coalition of Action continue to advance this work in important new directions.
Yet, hundreds of other consumer goods companies and their suppliers have made little progress to address the risk that deforestation poses to their business.
Yahoo
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Bangladesh's cooking oil import rises 13 times in two months
Malaysian palm-oil import by Bangladesh increased thirteen times in last December-January period, amid a high demand for cooking oils that sent prices spiraling to a record high.
The quantum leap in the oil import was disclosed by visiting Malaysian Minister of Plantation Industries and Commodities Datuk Zuraida Kamaruddin, who also showed ways of bridging a yawning gap in the bilateral trade.
Terming this increase very encouraging, Ms Kamaruddin said Malaysia is now looking for ways to establish downstream industries in Bangladesh for the commodities which are under her ministry.
Financial ExpressBD
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Sunflower Oil: India Stops Buying Sunoil As Ukraine Conflict Maroons Shipments
About 380,000 tonnes of sunflower oil shipments from the Black sea region to India are stuck at ports and with producers, and new purchases have stalled after ports suspended operations following Russia’s invasion of Ukraine, four dealers told Reuters.
There is no clarity when loading of the cargoes – worth $570 million at current prices – from Ukraine and Russia will resume, pushing Indian buyers to replace sunoil with soyoil and palm oil for March and April shipments, dealers said.
The Black Sea region accounts for 60% of world sunoil output and 76% of exports, and India is the top global edible oil importer.
Verve Times
---
India can play critical role in promoting sustainable palm oil: Experts
India, the world's leading vegetable oil buyer, had imported 83.21 lakh tons palm oil in 2020-2021 (Nov-Oct) and the share of palm oil is more than 60 per cent of the country's total vegetable oil imports
New Delhi, February 25, 2022: With the ever-increasing population and the government’s leading role in expanding sustainable palm oil farming domestically, India could lead the way in ensuring the sustainable production and consumption of palm oil. Oil palm is more efficient, uses less land, needs fewer pesticides, and less fertilizer and has the potential to help with the food security factor for a populous country like India. These are some of the insights presented at a virtual panel discussion on the theme, ‘Sustainable Palm Oil and its Role in Ensuring Food Security in India’, organised by the Council of Palm Oil Producing Countries (CPOPC) in collaboration with Hindustan Times, on February 22nd.
Hindustan Times
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India stops buying sunoil as Ukraine conflict maroons shipments -dealers
MUMBAI, Feb 25 (Reuters) - About 380,000 tonnes of sunflower oil shipments from the Black sea region to India are stuck at ports and with producers, and new purchases have stalled after ports suspended operations following Russia's invasion of Ukraine, four dealers told Reuters.
There is no clarity when loading of the cargoes - worth $570 million at current prices - from Ukraine and Russia will resume, pushing Indian buyers to replace sunoil with soyoil and palm oil for March and April shipments, dealers said.
Reuters
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Ukraine crisis burnishes Malaysian palm, energy stocks
Feb 25): Malaysia, a net exporter of crude oil and the world’s No. 2 palm oil producer, stands to gain from the record-smashing gains in global commodity markets sparked by Russia’s invasion of Ukraine, analysts said.
While the conflict has pushed Brent oil past US$100 (about RM420) a barrel, palm oil topped RM6,000 a ton for the first time ever on Thursday (Feb 24) to extend a record-breaking run fuelled by smaller output in the Southeast Asian nation.
MIDF Research reaffirmed its bullish calls on the energy and plantation sectors, while TA Securities said a decline in local stocks would be a buying opportunity. The FBM KLCI has risen more than 5% so far in February, poised for its best month since August, amid optimism about the nation’s wide Covid-19 vaccine coverage and plans to reopen its borders.
The Edge Markets
With new regulations, investor pressure, and disclosure requirements coming online, deforestation is a challenge that consumer goods companies can no longer afford to ignore. Fortunately, there is a clear path that can help all companies prepare.
For some consumer brands, deforestation linked to palm oil, cocoa, beef, wood fibre, and other commodities has posed reputational risk and been a focus of sustainability initiatives for years. The 21 members of The Consumer Goods Forum’s own Forest Positive Coalition of Action continue to advance this work in important new directions.
Yet, hundreds of other consumer goods companies and their suppliers have made little progress to address the risk that deforestation poses to their business.
Yahoo
---
Bangladesh's cooking oil import rises 13 times in two months
Malaysian palm-oil import by Bangladesh increased thirteen times in last December-January period, amid a high demand for cooking oils that sent prices spiraling to a record high.
The quantum leap in the oil import was disclosed by visiting Malaysian Minister of Plantation Industries and Commodities Datuk Zuraida Kamaruddin, who also showed ways of bridging a yawning gap in the bilateral trade.
Terming this increase very encouraging, Ms Kamaruddin said Malaysia is now looking for ways to establish downstream industries in Bangladesh for the commodities which are under her ministry.
Financial ExpressBD
---
Sunflower Oil: India Stops Buying Sunoil As Ukraine Conflict Maroons Shipments
About 380,000 tonnes of sunflower oil shipments from the Black sea region to India are stuck at ports and with producers, and new purchases have stalled after ports suspended operations following Russia’s invasion of Ukraine, four dealers told Reuters.
There is no clarity when loading of the cargoes – worth $570 million at current prices – from Ukraine and Russia will resume, pushing Indian buyers to replace sunoil with soyoil and palm oil for March and April shipments, dealers said.
The Black Sea region accounts for 60% of world sunoil output and 76% of exports, and India is the top global edible oil importer.
Verve Times
---
India can play critical role in promoting sustainable palm oil: Experts
India, the world's leading vegetable oil buyer, had imported 83.21 lakh tons palm oil in 2020-2021 (Nov-Oct) and the share of palm oil is more than 60 per cent of the country's total vegetable oil imports
New Delhi, February 25, 2022: With the ever-increasing population and the government’s leading role in expanding sustainable palm oil farming domestically, India could lead the way in ensuring the sustainable production and consumption of palm oil. Oil palm is more efficient, uses less land, needs fewer pesticides, and less fertilizer and has the potential to help with the food security factor for a populous country like India. These are some of the insights presented at a virtual panel discussion on the theme, ‘Sustainable Palm Oil and its Role in Ensuring Food Security in India’, organised by the Council of Palm Oil Producing Countries (CPOPC) in collaboration with Hindustan Times, on February 22nd.
Hindustan Times
---
India stops buying sunoil as Ukraine conflict maroons shipments -dealers
MUMBAI, Feb 25 (Reuters) - About 380,000 tonnes of sunflower oil shipments from the Black sea region to India are stuck at ports and with producers, and new purchases have stalled after ports suspended operations following Russia's invasion of Ukraine, four dealers told Reuters.
There is no clarity when loading of the cargoes - worth $570 million at current prices - from Ukraine and Russia will resume, pushing Indian buyers to replace sunoil with soyoil and palm oil for March and April shipments, dealers said.
Reuters
---
Ukraine crisis burnishes Malaysian palm, energy stocks
Feb 25): Malaysia, a net exporter of crude oil and the world’s No. 2 palm oil producer, stands to gain from the record-smashing gains in global commodity markets sparked by Russia’s invasion of Ukraine, analysts said.
While the conflict has pushed Brent oil past US$100 (about RM420) a barrel, palm oil topped RM6,000 a ton for the first time ever on Thursday (Feb 24) to extend a record-breaking run fuelled by smaller output in the Southeast Asian nation.
MIDF Research reaffirmed its bullish calls on the energy and plantation sectors, while TA Securities said a decline in local stocks would be a buying opportunity. The FBM KLCI has risen more than 5% so far in February, poised for its best month since August, amid optimism about the nation’s wide Covid-19 vaccine coverage and plans to reopen its borders.
The Edge Markets
India - Arunachal govt asked Ruchi Soya Industries Ltd (Oil Palm Division) to expedite the establishment of Palm Oil Processing Factory
Arunachal Pradesh government asked Ruchi Soya Industries Ltd (Oil Palm Division) to expedite the establishment of Palm Oil Processing Factory in Arunachal Pradesh to boost the confidence of the farmers to take up Palm Oil Cultivation.
In a series of meeting held separately with officials of Rubber Board Zonal Office, Guwahati and Palm Oil Industry, Ruchi Soya Industries Limited, Deputy Chief Minister Chowna Mein had taken up State farmer’s problems with them when they called on to him.
Economic Times
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Thailand - Oil palm subsidy approved
The cabinet on Tuesday approved a 7.66-billion-baht budget to finance the state-sponsored price guarantee scheme for oil palm in the 2021/2022 season.
Deputy government spokeswoman Rachada Dhnadirek said the scheme needs to be continued to ensure farmers' income.
The guaranteed price for fresh palm nuts is set at four baht per kilogramme, for a limit of 25 rai per family. The scheme runs from September 2021 to August 2022 and is expected to benefit 380,000 planters.
Bangkok Post
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Malaysia - Jenbachers picked for biofuel power project
INNIO and Concord Renewable Energy plan to build four power plants across Malaysia fueled by palm oil wastes.
Each plant is expected to operate two INNIO Jenbacher high-efficiency biogas engines, collectively delivering more than 8 MW of power to the grid.
The companies said the project emphasizes Malaysia’s efforts to achieve its COP26 commitments in moving away from fossil fuels and increasing renewable energy projects. The power plants, built in various parts of Malaysia, will deliver sustainable power to the grid while capturing methane, the companies said.
The Jenbacher Type 4 engines, for which INNIO will also supply long-term servicing, are fuel flexibile. This makes them an excellent technology to advance Malaysia’s plans to reduce its reliance on fossil fuels. As part of its COP26 commitment, Malaysia recently raised its National Renewable Energy Capacity target from a 20% increase to a 31% increase of renewables in the national energy mix by 2025.
Diesel Gas Turbine
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Malaysia to raise palm oil output after hiring more foreign workers
NEW DELHI: Malaysia will increase its palm oil production this year following a 5% decline last year due to a pandemic-induced labour shortage with the intake of more foreign workers.
Thousands of new plantation workers will be being hired from Bangladesh, India and Indonesia to make up for the shortfall as demand for Malaysian palm oil continues to grow.
“Malaysia will be able to supply more palm oil (to overseas markets) when the labour shortage is addressed. We plan to bring in 32,000 more foreign workers.
“Applications from employers are being processed,” Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin told Bernama.
The StarMY
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Arunachal Pradesh government asked Ruchi Soya Industries Ltd (Oil Palm Division) to expedite the establishment of Palm Oil Processing Factory in Arunachal Pradesh to boost the confidence of the farmers to take up Palm Oil Cultivation.
In a series of meeting held separately with officials of Rubber Board Zonal Office, Guwahati and Palm Oil Industry, Ruchi Soya Industries Limited, Deputy Chief Minister Chowna Mein had taken up State farmer’s problems with them when they called on to him.
Economic Times
---
Thailand - Oil palm subsidy approved
The cabinet on Tuesday approved a 7.66-billion-baht budget to finance the state-sponsored price guarantee scheme for oil palm in the 2021/2022 season.
Deputy government spokeswoman Rachada Dhnadirek said the scheme needs to be continued to ensure farmers' income.
The guaranteed price for fresh palm nuts is set at four baht per kilogramme, for a limit of 25 rai per family. The scheme runs from September 2021 to August 2022 and is expected to benefit 380,000 planters.
Bangkok Post
---
Malaysia - Jenbachers picked for biofuel power project
INNIO and Concord Renewable Energy plan to build four power plants across Malaysia fueled by palm oil wastes.
Each plant is expected to operate two INNIO Jenbacher high-efficiency biogas engines, collectively delivering more than 8 MW of power to the grid.
The companies said the project emphasizes Malaysia’s efforts to achieve its COP26 commitments in moving away from fossil fuels and increasing renewable energy projects. The power plants, built in various parts of Malaysia, will deliver sustainable power to the grid while capturing methane, the companies said.
The Jenbacher Type 4 engines, for which INNIO will also supply long-term servicing, are fuel flexibile. This makes them an excellent technology to advance Malaysia’s plans to reduce its reliance on fossil fuels. As part of its COP26 commitment, Malaysia recently raised its National Renewable Energy Capacity target from a 20% increase to a 31% increase of renewables in the national energy mix by 2025.
Diesel Gas Turbine
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Malaysia to raise palm oil output after hiring more foreign workers
NEW DELHI: Malaysia will increase its palm oil production this year following a 5% decline last year due to a pandemic-induced labour shortage with the intake of more foreign workers.
Thousands of new plantation workers will be being hired from Bangladesh, India and Indonesia to make up for the shortfall as demand for Malaysian palm oil continues to grow.
“Malaysia will be able to supply more palm oil (to overseas markets) when the labour shortage is addressed. We plan to bring in 32,000 more foreign workers.
“Applications from employers are being processed,” Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin told Bernama.
The StarMY
---
LEAK: EU due diligence law to apply only to 1% of European companies
The EU’s due diligence law aimed at making businesses accountable for human rights violations and environmental harm throughout their value chain will only cover 1% of EU companies, according to a draft of the proposal seen by EURACTIV.
After several delays, the European Commission is expected to present the new rules on Wednesday (23 February), to ensure human rights and environmental compliance of EU businesses operating abroad.
The soon to be proposed ‘Directive on Corporate Sustainability Due Diligence’ will oblige member states to adopt or adapt their own corporate due diligence laws. In those, member states should oblige companies to identify, prevent, and mitigate human rights abuses and the violation of environmental standards in their value chain.
However, most of these due diligence requirements will only apply to “established business relationships” of EU companies, which the Commission defines as a relationship, which is expected to be lasting and does not represent a negligible part of the value chain.
Euractiv
---
EU - Last-minute calls to delay EU deforestation law
After decades of voluntary measures that failed to halt deforestation, the EU is pioneering new regulation in a bid to reduce its role in the destruction of forests.
The regulation would force companies selling soy, beef, palm oil, wood, cocoa and coffee in the EU to ensure and prove that their production processes are deforestation-free.
More than 100 environmental and other organisations have called on EU governments and the European Parliament to improve the commission proposal. The French presidency of the EU council aims to reach a common position in June.
But some EU member states want to extend further a two-year transitional period to implement the new due-diligence obligations, while others say they are concerned about the administrative burden that small and medium companies will face. EU Observer
---
EU/ Malaysia - Climate and EnvironmentalGovernance: EU’s Carbon Border Adjustment Mechanism will benefit Malaysia
The efforts to fight climate change and its disastrous consequences are not relenting. For instance, as a result of the 2021 United Nations Climate Change Conference (COP26), 46 countries signed the Global Coal to Clean Energy Transition Statement, committing to transition away from unabated coal power generation by 2030 for “major economies” and a global transition by 2040.
The European Union is actively implementing the Climate Law it adopted back in 2021, which sets a binding objective for the EU to reach climate neutrality by 2050 and an ambitious 2030 climate target of at least 55% reduction of net emissions of greenhouse gases as compared to 1990. Malaysia is doing its part as well and has, of late, stepped up its efforts.
Last year, the government pledged to become carbon neutral by 2050 and updated its Nationally Determined Contribution (NDC), stating its intention to unconditionally reduce economy-wide carbon intensity of 45% by 2030 compared with 2005 levels. It is now mulling a Climate Change Act and is well on the way to creating a domestic emission trading scheme.
The Edge Markets
---
Solidaridad launches research-based publication to expose myths about oil palm cultivation
A publication titled ‘Myths and Truths of Oil Palm’ was recently launched by Solidaridad Network Asia Limited, a civil society organisation facilitating the development of socially responsible, ecologically sound and profitable supply chains. The event witnessed the presence of experts in the oil palm industry representing over 19 countries.
The research-based study provides information and assessments on palm oil through an in-depth literature review written following independent investigations by over 15 universities and research institutes on cultivating oil palm. The research was supervised by Dr. Maja Slingerland of the Wageningen University, Netherlands.
In the recent past, several protests have been held against the cultivation of palm oil in Sri Lanka and the publishers opine that the recent publication debunks many myths and false beliefs on palm oil. The publication further sheds light on how the cultivation of oil palm supports socio-economic factors and the environment.
In April 2021, the incumbent government banned the import of palm oil and imposed a ban on cultivating oil palm. The government was also of the view that every year 10 percent of trees should be cut down in order to completely put an end to the cultivation of oil palm in 10 years’ time.
Daily MirrorLK
---
Malaysia: INNIO to build four biogas plants fueled by palm oil waste
Power generation solutions company INNIO has signed an MoU with project developer Concord Renewable Energy to build four power plants across Malaysia fueled by palm oil waste.
Each plant will operate two INNIO Jenbacher high-efficiency biogas engines, collectively delivering more than 8MW of power to the grid.
INNIO has also signed a long-term service agreement for the Jenbacher Type 4 engines.
According to INNIO, the project aligns with Malaysia’s goal to reduce reliance on fossil fuels and increase renewables in the energy mix to 31% by 2025.
Carsten Dommermuth, Vice President and General Manager APAC at INNIO Jenbacher, said: “INNIO has more than 500 Jenbacher engines currently operating on biogas and deploying about 1GW in the ASEAN region.
Power Engineering Int
---
Malaysia mulls MoU with India on labour intake for plantations
PETALING JAYA: Malaysia and India are mulling a memorandum of understanding (MoU) on labour intake for the plantation sector, said plantation industries and commodities minister Zuraida Kamaruddin.
She said in her discussions with Indian minister of state for external affairs V Muraleedharan yesterday, she had spoken of the high demand for foreign workers in Malaysia’s plantation industries.
“My meeting (with Muraleedharan) was about making long-term arrangements for labour supply in the plantation sector,” she told Bernama, adding that they discussed signing an MoU between the two countries.
Zuraida, who arrived in India on Sunday for a four-day visit to promote agriculture exports, said Malaysia will increase its palm oil production this year with the intake of more foreign workers following a 5% decline last year due to a pandemic-induced labour shortage.
Free Malaysia Today
---
Malaysia looking at creating palm oil logistics hub in Egypt, says Zuraida
NEW DELHI: Malaysia is looking at setting up a palm oil logistics and marketing hub in Egypt to boost its commodities exports to Africa.
Egypt is keen to work with Malaysia to develop a palm oil storage, distribution and marketing facility catering to neighbouring markets, Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin (pic) told Bernama in New Delhi on Monday (Feb 21).
"They (Egypt) want to be a hub in that region. We can develop it with the private sector's participation," she said.
The StarMY
The EU’s due diligence law aimed at making businesses accountable for human rights violations and environmental harm throughout their value chain will only cover 1% of EU companies, according to a draft of the proposal seen by EURACTIV.
After several delays, the European Commission is expected to present the new rules on Wednesday (23 February), to ensure human rights and environmental compliance of EU businesses operating abroad.
The soon to be proposed ‘Directive on Corporate Sustainability Due Diligence’ will oblige member states to adopt or adapt their own corporate due diligence laws. In those, member states should oblige companies to identify, prevent, and mitigate human rights abuses and the violation of environmental standards in their value chain.
However, most of these due diligence requirements will only apply to “established business relationships” of EU companies, which the Commission defines as a relationship, which is expected to be lasting and does not represent a negligible part of the value chain.
Euractiv
---
EU - Last-minute calls to delay EU deforestation law
After decades of voluntary measures that failed to halt deforestation, the EU is pioneering new regulation in a bid to reduce its role in the destruction of forests.
The regulation would force companies selling soy, beef, palm oil, wood, cocoa and coffee in the EU to ensure and prove that their production processes are deforestation-free.
More than 100 environmental and other organisations have called on EU governments and the European Parliament to improve the commission proposal. The French presidency of the EU council aims to reach a common position in June.
But some EU member states want to extend further a two-year transitional period to implement the new due-diligence obligations, while others say they are concerned about the administrative burden that small and medium companies will face. EU Observer
---
EU/ Malaysia - Climate and EnvironmentalGovernance: EU’s Carbon Border Adjustment Mechanism will benefit Malaysia
The efforts to fight climate change and its disastrous consequences are not relenting. For instance, as a result of the 2021 United Nations Climate Change Conference (COP26), 46 countries signed the Global Coal to Clean Energy Transition Statement, committing to transition away from unabated coal power generation by 2030 for “major economies” and a global transition by 2040.
The European Union is actively implementing the Climate Law it adopted back in 2021, which sets a binding objective for the EU to reach climate neutrality by 2050 and an ambitious 2030 climate target of at least 55% reduction of net emissions of greenhouse gases as compared to 1990. Malaysia is doing its part as well and has, of late, stepped up its efforts.
Last year, the government pledged to become carbon neutral by 2050 and updated its Nationally Determined Contribution (NDC), stating its intention to unconditionally reduce economy-wide carbon intensity of 45% by 2030 compared with 2005 levels. It is now mulling a Climate Change Act and is well on the way to creating a domestic emission trading scheme.
The Edge Markets
---
Solidaridad launches research-based publication to expose myths about oil palm cultivation
A publication titled ‘Myths and Truths of Oil Palm’ was recently launched by Solidaridad Network Asia Limited, a civil society organisation facilitating the development of socially responsible, ecologically sound and profitable supply chains. The event witnessed the presence of experts in the oil palm industry representing over 19 countries.
The research-based study provides information and assessments on palm oil through an in-depth literature review written following independent investigations by over 15 universities and research institutes on cultivating oil palm. The research was supervised by Dr. Maja Slingerland of the Wageningen University, Netherlands.
In the recent past, several protests have been held against the cultivation of palm oil in Sri Lanka and the publishers opine that the recent publication debunks many myths and false beliefs on palm oil. The publication further sheds light on how the cultivation of oil palm supports socio-economic factors and the environment.
In April 2021, the incumbent government banned the import of palm oil and imposed a ban on cultivating oil palm. The government was also of the view that every year 10 percent of trees should be cut down in order to completely put an end to the cultivation of oil palm in 10 years’ time.
Daily MirrorLK
---
Malaysia: INNIO to build four biogas plants fueled by palm oil waste
Power generation solutions company INNIO has signed an MoU with project developer Concord Renewable Energy to build four power plants across Malaysia fueled by palm oil waste.
Each plant will operate two INNIO Jenbacher high-efficiency biogas engines, collectively delivering more than 8MW of power to the grid.
INNIO has also signed a long-term service agreement for the Jenbacher Type 4 engines.
According to INNIO, the project aligns with Malaysia’s goal to reduce reliance on fossil fuels and increase renewables in the energy mix to 31% by 2025.
Carsten Dommermuth, Vice President and General Manager APAC at INNIO Jenbacher, said: “INNIO has more than 500 Jenbacher engines currently operating on biogas and deploying about 1GW in the ASEAN region.
Power Engineering Int
---
Malaysia mulls MoU with India on labour intake for plantations
PETALING JAYA: Malaysia and India are mulling a memorandum of understanding (MoU) on labour intake for the plantation sector, said plantation industries and commodities minister Zuraida Kamaruddin.
She said in her discussions with Indian minister of state for external affairs V Muraleedharan yesterday, she had spoken of the high demand for foreign workers in Malaysia’s plantation industries.
“My meeting (with Muraleedharan) was about making long-term arrangements for labour supply in the plantation sector,” she told Bernama, adding that they discussed signing an MoU between the two countries.
Zuraida, who arrived in India on Sunday for a four-day visit to promote agriculture exports, said Malaysia will increase its palm oil production this year with the intake of more foreign workers following a 5% decline last year due to a pandemic-induced labour shortage.
Free Malaysia Today
---
Malaysia looking at creating palm oil logistics hub in Egypt, says Zuraida
NEW DELHI: Malaysia is looking at setting up a palm oil logistics and marketing hub in Egypt to boost its commodities exports to Africa.
Egypt is keen to work with Malaysia to develop a palm oil storage, distribution and marketing facility catering to neighbouring markets, Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin (pic) told Bernama in New Delhi on Monday (Feb 21).
"They (Egypt) want to be a hub in that region. We can develop it with the private sector's participation," she said.
The StarMY
Brussels, 21/02/2022 -EU Strategy for Cooperation in the Indo-Pacific
The EU is stepping up its strategic engagement with the vital Indo-Pacific region. The region’s growing economic, demographic, and political weight makes it a key player in shaping the rules-based international order and in addressing global challenges. With this new strategy, the EU aims to contribute to the region’s stability, security, prosperity and sustainable development, in line with the principles of democracy, rule of law, human rights and international law.
EEAS.EUROPA
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Nigeria - ‘Diversifying Nigeria’s economy more urgent now’
Nigeria has been over reliant on oil for its revenue, but is now making efforts to diversify into agriculture. With some of your subsidiaries in agriculture and agro-allied sector, how would you react to this?
COVID-19 coupled with rising debt profiles, have brought the issue of diversification to a new level of urgency. Due to the whims of the world crude oil market, an oil-based mono-economy like Nigeria cannot achieve economic stability. The relationship between the global oil market and the Nigerian economy means that whenever the oil market sneezes, Nigeria catches cold. For instance, from 2010 to 2015, Nigeria’s GDP grew at an average of 5.53% every year. However, in the aftermath of the oil shocks of 2016, economic growth slowed and the economy went into an outright recession. Diversification helps to mitigate volatility and provides a more sustainable path for equitable growth and development.
The Nation OnlineNG
---
Ghana - Youth urged to venture into palm oil to reduce unemployment in Ghana
President of the Artisanal Palm Oil Millers and Outgrowers Association of Ghana, Paul-Kwabena-Amaning, has urged the government to come up with policies that will build the local crude palm oil industry's capacity, as doing so will make the country become self-sufficient and an exporter of refined palm oil products.
However, he said, the discussion should now be focused on policies that will make the industry robust enough to produce sufficient amounts to satisfy local demand and export the excess, as this will end imports of refined palm oil products.
Pulse Ghana
---
India - A roadmap for oil palm development in India
The Centre should follow a cluster approach everywhere
Due to the ever-increasing demand of edible oils caused by the increased consumption of high-value value food products, there is an unprecedented opportunity of improving the farmer’s income. Moreover, India has been importing edible oils and its derivatives annually worth ₹70,000 crore or more. The government of India has introduced the new Mission under The National Mission on Edible Oils - Oil Palm (NMEO-OP) rightly about six months ago for domestic oil seeds and oil palm, with the objective of encouraging domestic oilseeds production and oil palm cultivation across India. Farmers need to shift their traditional crops of low value and yield to a higher value-added crop, like oil palm.
The Hindu BusinessLine
---
India - PT Astra Agro Lestari Tbk : Cooking oil refining in India could shift to Indonesia on Duties
Refiners of edible oils in India, one of the world's biggest consumers, face the prospect of shuttering factories because the structure of import taxes makes supplies of processed oils from overseas more attractive, according to the Indian Vegetable Oil Producers' Association.
As much as 30% of the country's refining capacity could shift to Indonesia and Malaysia, the top palm oil producers, if the situation continues, said Sudhakar Desai, the group's president. India buys about 60% of its cooking oil supplies from abroad and is the largest importer of palm, soybean and sunflower oils.
The current duty structure, even after a recent change, means that as much as 30% of the country's palm oil imports will now be in refined form, which reduces the viability of local processing, Desai said in an interview. Export duties in Indonesia also favor shipments of refined palm oil, he said.
MarketScreener
The EU is stepping up its strategic engagement with the vital Indo-Pacific region. The region’s growing economic, demographic, and political weight makes it a key player in shaping the rules-based international order and in addressing global challenges. With this new strategy, the EU aims to contribute to the region’s stability, security, prosperity and sustainable development, in line with the principles of democracy, rule of law, human rights and international law.
EEAS.EUROPA
---
Nigeria - ‘Diversifying Nigeria’s economy more urgent now’
Nigeria has been over reliant on oil for its revenue, but is now making efforts to diversify into agriculture. With some of your subsidiaries in agriculture and agro-allied sector, how would you react to this?
COVID-19 coupled with rising debt profiles, have brought the issue of diversification to a new level of urgency. Due to the whims of the world crude oil market, an oil-based mono-economy like Nigeria cannot achieve economic stability. The relationship between the global oil market and the Nigerian economy means that whenever the oil market sneezes, Nigeria catches cold. For instance, from 2010 to 2015, Nigeria’s GDP grew at an average of 5.53% every year. However, in the aftermath of the oil shocks of 2016, economic growth slowed and the economy went into an outright recession. Diversification helps to mitigate volatility and provides a more sustainable path for equitable growth and development.
The Nation OnlineNG
---
Ghana - Youth urged to venture into palm oil to reduce unemployment in Ghana
President of the Artisanal Palm Oil Millers and Outgrowers Association of Ghana, Paul-Kwabena-Amaning, has urged the government to come up with policies that will build the local crude palm oil industry's capacity, as doing so will make the country become self-sufficient and an exporter of refined palm oil products.
However, he said, the discussion should now be focused on policies that will make the industry robust enough to produce sufficient amounts to satisfy local demand and export the excess, as this will end imports of refined palm oil products.
Pulse Ghana
---
India - A roadmap for oil palm development in India
The Centre should follow a cluster approach everywhere
Due to the ever-increasing demand of edible oils caused by the increased consumption of high-value value food products, there is an unprecedented opportunity of improving the farmer’s income. Moreover, India has been importing edible oils and its derivatives annually worth ₹70,000 crore or more. The government of India has introduced the new Mission under The National Mission on Edible Oils - Oil Palm (NMEO-OP) rightly about six months ago for domestic oil seeds and oil palm, with the objective of encouraging domestic oilseeds production and oil palm cultivation across India. Farmers need to shift their traditional crops of low value and yield to a higher value-added crop, like oil palm.
The Hindu BusinessLine
---
India - PT Astra Agro Lestari Tbk : Cooking oil refining in India could shift to Indonesia on Duties
Refiners of edible oils in India, one of the world's biggest consumers, face the prospect of shuttering factories because the structure of import taxes makes supplies of processed oils from overseas more attractive, according to the Indian Vegetable Oil Producers' Association.
As much as 30% of the country's refining capacity could shift to Indonesia and Malaysia, the top palm oil producers, if the situation continues, said Sudhakar Desai, the group's president. India buys about 60% of its cooking oil supplies from abroad and is the largest importer of palm, soybean and sunflower oils.
The current duty structure, even after a recent change, means that as much as 30% of the country's palm oil imports will now be in refined form, which reduces the viability of local processing, Desai said in an interview. Export duties in Indonesia also favor shipments of refined palm oil, he said.
MarketScreener
EU Legislation for Deforestation-free Supply Chains EU Grain and Oilseeds Sector warns against pitfalls of current draft
COCERAL, FEDIOL, and FEFAC, representing the EU grain and oilseed trade, crushing and animal feed industry, support the EU’s ambition to halt deforestation and only allow imports of deforestation-free products in Europe. For the EU framework to also achieve sustainable transformation in the countries of origin, it requires putting in place tools and processes that are practicable for the whole food and feed supply chain, from the site of production to the market of destination. There is no one-size-fits-all solution. Tools and processes will have to be adapted to the supply chain models of the different commodities concerned.
The draft Regulation, instead of supporting the increase of deforestation-free supply chains, is expected to have important negative impacts, such as supply shortages in the EU leading to high prices and challenging the EU food and feed chain competitiveness; lack of real impact on deforestation due to lack of leverage and incentives to transform practices on the ground; exclusion of the majority of smallholders and certain mills supplied by smallholders from the supply chains; and disproportionate administrative and logistical burdens for both operators and competent authorities.
To address these negative impacts while both ensuring deforestation-free supply chains and tackling deforestation on the ground, COCERAL, FEDIOL, and FEFAC recommend:
FEFAC
COCERAL, FEDIOL, and FEFAC, representing the EU grain and oilseed trade, crushing and animal feed industry, support the EU’s ambition to halt deforestation and only allow imports of deforestation-free products in Europe. For the EU framework to also achieve sustainable transformation in the countries of origin, it requires putting in place tools and processes that are practicable for the whole food and feed supply chain, from the site of production to the market of destination. There is no one-size-fits-all solution. Tools and processes will have to be adapted to the supply chain models of the different commodities concerned.
The draft Regulation, instead of supporting the increase of deforestation-free supply chains, is expected to have important negative impacts, such as supply shortages in the EU leading to high prices and challenging the EU food and feed chain competitiveness; lack of real impact on deforestation due to lack of leverage and incentives to transform practices on the ground; exclusion of the majority of smallholders and certain mills supplied by smallholders from the supply chains; and disproportionate administrative and logistical burdens for both operators and competent authorities.
To address these negative impacts while both ensuring deforestation-free supply chains and tackling deforestation on the ground, COCERAL, FEDIOL, and FEFAC recommend:
FEFAC
Banning high-deforestation palm oil imports would barely reduce forest loss
Support for conservation, not palm oil trade restrictions, can best save forests according to new research
Consumer countries are increasingly attempting to combat tropical deforestation by restricting imports of palm oil, soy, beef and other commodities. However, banning imports of commodities grown with high levels of deforestation may have a much smaller effect than anticipated, according to a new study by my co-authors and I published in December 2021 in the journal Environmental Research Letters.
If Europe had banned imports of high-deforestation palm oil from 2000-2015, then deforestation in Indonesia over that time period would only have been 1.6% less than it actually was, while the carbon dioxide emissions from deforestation would have been 1.9% less. China Dialogue/ JonahBusch
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Has palm oil become a deforestation scapegoat? ‘We need to stop focusing just on oil palm and look across all deforestation drivers’
When it comes to deforestation, is there too much focus on palm oil? Experts advocate for a broader approach to tackling forest and biodiversity loss.
Food Navigator
---
Global nature pact urged to reform harmful subsidies of $1.8 trln a year
KUALA LUMPUR, Feb 17 (Thomson Reuters Foundation) - Subsidies that are harming ecosystems, wildlife and the climate amount to nearly $2 trillion a year, researchers said on Thursday, calling for the subsidies to be reformed under talks on a global nature pact due to be agreed in the coming months.
A study backed by The B Team and Business for Nature, a global coalition of companies seeking to stop biodiversity loss and promote sustainability, is the first in over a decade to estimate the total value of environmentally harmful subsidies.
It found that, worldwide, at least $1.8 trillion a year in government money, tax breaks and other forms of support goes to damaging practices in agriculture, construction, forestry, fossil fuels, marine fisheries, transport and water - sectors responsible for the majority of global greenhouse gas emissions. Reuters
Support for conservation, not palm oil trade restrictions, can best save forests according to new research
Consumer countries are increasingly attempting to combat tropical deforestation by restricting imports of palm oil, soy, beef and other commodities. However, banning imports of commodities grown with high levels of deforestation may have a much smaller effect than anticipated, according to a new study by my co-authors and I published in December 2021 in the journal Environmental Research Letters.
If Europe had banned imports of high-deforestation palm oil from 2000-2015, then deforestation in Indonesia over that time period would only have been 1.6% less than it actually was, while the carbon dioxide emissions from deforestation would have been 1.9% less. China Dialogue/ JonahBusch
---
Has palm oil become a deforestation scapegoat? ‘We need to stop focusing just on oil palm and look across all deforestation drivers’
When it comes to deforestation, is there too much focus on palm oil? Experts advocate for a broader approach to tackling forest and biodiversity loss.
Food Navigator
---
Global nature pact urged to reform harmful subsidies of $1.8 trln a year
KUALA LUMPUR, Feb 17 (Thomson Reuters Foundation) - Subsidies that are harming ecosystems, wildlife and the climate amount to nearly $2 trillion a year, researchers said on Thursday, calling for the subsidies to be reformed under talks on a global nature pact due to be agreed in the coming months.
A study backed by The B Team and Business for Nature, a global coalition of companies seeking to stop biodiversity loss and promote sustainability, is the first in over a decade to estimate the total value of environmentally harmful subsidies.
It found that, worldwide, at least $1.8 trillion a year in government money, tax breaks and other forms of support goes to damaging practices in agriculture, construction, forestry, fossil fuels, marine fisheries, transport and water - sectors responsible for the majority of global greenhouse gas emissions. Reuters
GLOBAL - THE LAUNCHING OF GLOBAL FRAMEWORK PRINCIPLES OF SUSTAINABLE PALM OIL
CPOPC has developed and launched the Global Framework Principles of Sustainable Palm Oil (GFP-SPO) aims to be a common language across the different certification schemes being applied to palm oil production anchored in the UN SDGs as its base. The framework can also be used to value the contribution of palm oil toward achieving sustainable development in all producing countries and shall lay the foundations for the establishment of sustainability of vegetable oils platform. The GFP-SPO was officially launched today on the webinar titled “Global Framework for Sustainable Palm Oil” attended by the representatives of CPOPC member and observer countries as well as other related stakeholders in palm oil sustainability schemes. The important document was adopted and approved by Ministers of member countries at the 9th Ministerial Meeting on 4 December 2021. CPOPC
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GFP-SPO to be common language across palm oil certification schemes — CPOPC
KUALA LUMPUR (Feb 15): The Council of Palm Oil Producing Countries (CPOPC) has developed a Global Framework of Principles of Sustainable Palm Oil (GFP-SPO) that aims to be a common language across different certification schemes applied to palm oil production anchored in the United Nations Sustainable Development Goals (UN SDGs) as its base.
The council said the framework could also be used to value the contribution of palm oil towards achieving sustainable development in all producing countries and shall lay the foundation for the establishment of a sustainable vegetable oil platform.
“The GFP-SPO was officially launched today on the webinar titled ‘Global Framework for Sustainable Palm Oil’ attended by representatives of CPOPC member and observer countries as well as other related stakeholders in palm oil sustainability schemes,” it said in a statement on Tuesday (Feb 15).
The Edge Markets
---
Ghana - Palm Oil Industry Is The Key To Solving Youth Unemployment In Ghana- Paul-Amaning
President of the Artisanal Palm Oil Millers and Outgrowers Association of Ghana, Mr. Paul-Kwabena-Amaning, has urged government to come up with policies that will build the local crude palm oil industry’s capacity, as doing so will make the country become self-sufficient and an exporter of refined palm oil products.
However, he said, the discussion should now be focused on policies which will make the industry robust enough to produce sufficient amounts to satisfy local demand and export the excess, as this will end imports of refined palm oil products.
“So I would say the attention should be given more to crude palm oil production, because at this moment Ghana has a shortage of crude palm oil but we have adequate installed capacity for refineries. The main focus should be how to build and improve capacity of local crude palm oil manufacturers to become more productive.
“If we increase crude palm oil production we will not need to import refined oil, because it is from the crude oil that we get refined oil,” Mr. Paul-Kwabena-Amaning exclusively told Kwaku Owusu Adjei on Adwenekasa Accra-based Original 91.9 FM. Modern Ghana
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Nepal - Good times end for Nepali palm oil exporters
Nepal's palm oil exports to India may take a hit as the southern neighbour has slashed customs duty on crude palm oil from 7.5 to 5 percent to lower edible oil prices ahead of its state elections, Nepali traders say.
“With the cut in import tax by India, it is now not financially feasible for Nepali traders to export refined palm oil to India,” Ratan Lal Kedia, vice-president of the Nepal Vegetable Ghee and Oil Manufacturers Association, told the Post.
“We expect shipments of refined palm oil to India to drop to zero after its new policy.”
The world’s biggest edible oil importer reduced the import duty effective from February 13 in a bid to keep local prices in check and give a boost to domestic refiners. Kathmandu Post
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UNILEVER - People for palm oil: Unilever leverages crowdsourcing to boost supply chain transparency
16 Feb 2022 --- With deforestation being critically linked to unsustainable practices across palm oil production, Unilever is leveraging smartphone-enabled crowdsourcing to broaden its oversight of this hot commodity’s supply chain in Indonesia.
The FMCG giant is recruiting mill workers and suppliers to provide photos and information about collection points and ramps – collection points where fresh palm fruit from different smallholder oil palm producers are collected, purchased and subsequently sold to the mills – via the digital crowdsourcing platform Premise.
Contributors are taught, through Premise’s platform, how to collect insights in a way that respects people and property laws in line with Indonesia’s regulations.
Food Ingredients First
---
CPOPC has developed and launched the Global Framework Principles of Sustainable Palm Oil (GFP-SPO) aims to be a common language across the different certification schemes being applied to palm oil production anchored in the UN SDGs as its base. The framework can also be used to value the contribution of palm oil toward achieving sustainable development in all producing countries and shall lay the foundations for the establishment of sustainability of vegetable oils platform. The GFP-SPO was officially launched today on the webinar titled “Global Framework for Sustainable Palm Oil” attended by the representatives of CPOPC member and observer countries as well as other related stakeholders in palm oil sustainability schemes. The important document was adopted and approved by Ministers of member countries at the 9th Ministerial Meeting on 4 December 2021. CPOPC
---
GFP-SPO to be common language across palm oil certification schemes — CPOPC
KUALA LUMPUR (Feb 15): The Council of Palm Oil Producing Countries (CPOPC) has developed a Global Framework of Principles of Sustainable Palm Oil (GFP-SPO) that aims to be a common language across different certification schemes applied to palm oil production anchored in the United Nations Sustainable Development Goals (UN SDGs) as its base.
The council said the framework could also be used to value the contribution of palm oil towards achieving sustainable development in all producing countries and shall lay the foundation for the establishment of a sustainable vegetable oil platform.
“The GFP-SPO was officially launched today on the webinar titled ‘Global Framework for Sustainable Palm Oil’ attended by representatives of CPOPC member and observer countries as well as other related stakeholders in palm oil sustainability schemes,” it said in a statement on Tuesday (Feb 15).
The Edge Markets
---
Ghana - Palm Oil Industry Is The Key To Solving Youth Unemployment In Ghana- Paul-Amaning
President of the Artisanal Palm Oil Millers and Outgrowers Association of Ghana, Mr. Paul-Kwabena-Amaning, has urged government to come up with policies that will build the local crude palm oil industry’s capacity, as doing so will make the country become self-sufficient and an exporter of refined palm oil products.
However, he said, the discussion should now be focused on policies which will make the industry robust enough to produce sufficient amounts to satisfy local demand and export the excess, as this will end imports of refined palm oil products.
“So I would say the attention should be given more to crude palm oil production, because at this moment Ghana has a shortage of crude palm oil but we have adequate installed capacity for refineries. The main focus should be how to build and improve capacity of local crude palm oil manufacturers to become more productive.
“If we increase crude palm oil production we will not need to import refined oil, because it is from the crude oil that we get refined oil,” Mr. Paul-Kwabena-Amaning exclusively told Kwaku Owusu Adjei on Adwenekasa Accra-based Original 91.9 FM. Modern Ghana
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Nepal - Good times end for Nepali palm oil exporters
Nepal's palm oil exports to India may take a hit as the southern neighbour has slashed customs duty on crude palm oil from 7.5 to 5 percent to lower edible oil prices ahead of its state elections, Nepali traders say.
“With the cut in import tax by India, it is now not financially feasible for Nepali traders to export refined palm oil to India,” Ratan Lal Kedia, vice-president of the Nepal Vegetable Ghee and Oil Manufacturers Association, told the Post.
“We expect shipments of refined palm oil to India to drop to zero after its new policy.”
The world’s biggest edible oil importer reduced the import duty effective from February 13 in a bid to keep local prices in check and give a boost to domestic refiners. Kathmandu Post
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UNILEVER - People for palm oil: Unilever leverages crowdsourcing to boost supply chain transparency
16 Feb 2022 --- With deforestation being critically linked to unsustainable practices across palm oil production, Unilever is leveraging smartphone-enabled crowdsourcing to broaden its oversight of this hot commodity’s supply chain in Indonesia.
The FMCG giant is recruiting mill workers and suppliers to provide photos and information about collection points and ramps – collection points where fresh palm fruit from different smallholder oil palm producers are collected, purchased and subsequently sold to the mills – via the digital crowdsourcing platform Premise.
Contributors are taught, through Premise’s platform, how to collect insights in a way that respects people and property laws in line with Indonesia’s regulations.
Food Ingredients First
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Malaysia's Sime Darby Plantation to compensate migrant workers over fees
[KUALA LUMPUR] Malaysia's Sime Darby Plantation will set aside a total of RM82.02 million (S$26.4 million) to compensate current and former migrant workers who paid recruitment fees to secure jobs, the company said, amid concerns over its labour practices.
The US Customs and Border Protection (CBP) has since 2020 barred Malaysian products supplied by the palm oil planter over allegations about labour practises.
Last month, CBP said it had sufficient information to determine that the firm uses "forced labour" and that goods are subject to seizure.
In a statement, Sime Darby Plantation's Group managing director Mohamad Helmy Othman Basha said: "We have spent a long hard year auditing, examining, and occasionally, unearthing entrenched practises that needed to be improved or changed." "Every gap we have found has been or is being closed, every lapse in governance is being or has been addressed, any improvement needed has been or is being made," he said.
The world's biggest palm oil planter by land size said it will reimburse 15,078 current migrant workers a total of RM38.55 million and set aside a fund of RM43.47 million to reimburse 19,565 former workers.
Business Times SG
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Malaysia has not failed in addressing forced labour issues, says Zuraida
PETALING JAYA (Feb 14): Malaysia has not failed in addressing forced labour issues in the country as the government has taken action to eradicate labour abuse through the nation’s Foreign Workers Centralised Management System (FWCMS), Minister of Plantation Industries and Commodities Datuk Zuraida Kamaruddin said on Monday (Feb 14).
"We have not failed yet. We are taking action. The latest is that we have implemented the FWCMS [under] the Ministry of Human Resources.
"With FWCMS, we can find out about the workers the moment they enter into the [FWCMS] system. We can know when they will arrive in Malaysia. [We will make sure] that the issue of manipulation and labour abuse will be eradicated,” Zuraida told reporters at the International Rubber Industry Convention and Expo 2022 here.
MSN
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Malaysian palm oil all set for the big push into the UAE market
The Malaysian Palm Oil Council (MPOC), has launched its ‘Malaysian Palm Oil Full of Goodness’ consumer campaign at the LuLu Hypermarket located at the Dubai Silicon Oasis in its effort to drive the growth of the commodity in the UAE.
Launched by Malaysia’s Deputy Minister of Plantation Industries and Commodities, The Honourable Datuk Willie Anak Mongin, the event was in conjunction with the ministry’s participation in Expo 2020 Dubai, currently held at the Malaysian Pavilion in Dubai South from February 6 to 12, 2022.
An MoU was earlier sealed between MPOC and the Lulu Group International (LuLu) to promote and market Malaysia’s palm-oil based products through the latter’s wide chain of hypermarkets located in the UAE.
Gulf News
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Nigeria - From crude oil to palm oil: Nigeria strives to diversify
President Muhammadu Buhari has made the development of Nigeria’s agriculture a central part of his plan to cut the country’s food import bill, and reduce the reliance of Africa’s largest economy on crude oil sales.
But, while efforts to boost the production of palm oil — which is used for cooking and found in goods ranging from toothpaste to soap — have reinvigorated the local industry, they have also highlighted the challenges a new president will face when Buhari’s second term ends next year.
Nigeria was the world’s leading palm oil producer in the early 1960s. However, after focusing on crude oil exports in subsequent decades, it slipped to fifth and now mostly imports the vegetable oil from Indonesia and Malaysia.
FT
---
[KUALA LUMPUR] Malaysia's Sime Darby Plantation will set aside a total of RM82.02 million (S$26.4 million) to compensate current and former migrant workers who paid recruitment fees to secure jobs, the company said, amid concerns over its labour practices.
The US Customs and Border Protection (CBP) has since 2020 barred Malaysian products supplied by the palm oil planter over allegations about labour practises.
Last month, CBP said it had sufficient information to determine that the firm uses "forced labour" and that goods are subject to seizure.
In a statement, Sime Darby Plantation's Group managing director Mohamad Helmy Othman Basha said: "We have spent a long hard year auditing, examining, and occasionally, unearthing entrenched practises that needed to be improved or changed." "Every gap we have found has been or is being closed, every lapse in governance is being or has been addressed, any improvement needed has been or is being made," he said.
The world's biggest palm oil planter by land size said it will reimburse 15,078 current migrant workers a total of RM38.55 million and set aside a fund of RM43.47 million to reimburse 19,565 former workers.
Business Times SG
---
Malaysia has not failed in addressing forced labour issues, says Zuraida
PETALING JAYA (Feb 14): Malaysia has not failed in addressing forced labour issues in the country as the government has taken action to eradicate labour abuse through the nation’s Foreign Workers Centralised Management System (FWCMS), Minister of Plantation Industries and Commodities Datuk Zuraida Kamaruddin said on Monday (Feb 14).
"We have not failed yet. We are taking action. The latest is that we have implemented the FWCMS [under] the Ministry of Human Resources.
"With FWCMS, we can find out about the workers the moment they enter into the [FWCMS] system. We can know when they will arrive in Malaysia. [We will make sure] that the issue of manipulation and labour abuse will be eradicated,” Zuraida told reporters at the International Rubber Industry Convention and Expo 2022 here.
MSN
---
Malaysian palm oil all set for the big push into the UAE market
The Malaysian Palm Oil Council (MPOC), has launched its ‘Malaysian Palm Oil Full of Goodness’ consumer campaign at the LuLu Hypermarket located at the Dubai Silicon Oasis in its effort to drive the growth of the commodity in the UAE.
Launched by Malaysia’s Deputy Minister of Plantation Industries and Commodities, The Honourable Datuk Willie Anak Mongin, the event was in conjunction with the ministry’s participation in Expo 2020 Dubai, currently held at the Malaysian Pavilion in Dubai South from February 6 to 12, 2022.
An MoU was earlier sealed between MPOC and the Lulu Group International (LuLu) to promote and market Malaysia’s palm-oil based products through the latter’s wide chain of hypermarkets located in the UAE.
Gulf News
---
Nigeria - From crude oil to palm oil: Nigeria strives to diversify
President Muhammadu Buhari has made the development of Nigeria’s agriculture a central part of his plan to cut the country’s food import bill, and reduce the reliance of Africa’s largest economy on crude oil sales.
But, while efforts to boost the production of palm oil — which is used for cooking and found in goods ranging from toothpaste to soap — have reinvigorated the local industry, they have also highlighted the challenges a new president will face when Buhari’s second term ends next year.
Nigeria was the world’s leading palm oil producer in the early 1960s. However, after focusing on crude oil exports in subsequent decades, it slipped to fifth and now mostly imports the vegetable oil from Indonesia and Malaysia.
FT
---
India cuts tax on crude palm oil imports to help consumers, refiners
The reduction in the tax, known as the Agriculture Infrastructure and Development Cess (AIDC), will widen the gap between the CPO and refined palm oil import duties, effectively making it cheaper for Indian refiners to import CPO, industry officials told Reuters.
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Pakistan - The skyrocketing prices of edible oil
Palm oil prices move both ways but people forced to pay higher cooking oil rates
Prices of edible oil, ghee and related products were adjusted upwards several times during the previous year.
In January 2021, cooking oil was sold for Rs289 per kg whereas in January 2022 its price was standing at Rs399 a kg.
Despite the fact that prices of palm oil have fluctuated both ways, but end-consumers have faced only increase in prices of cooking oil.
In the wake of Covid-19, the world is providing relief for its people. On the contrary, Pakistanis are still struggling with sizeable price hikes in the case of edible oil.
Since Pakistan’s edible oil industry has been continuing to depend heavily on imported palm oil, the rise in prices is well understood. It has been the third largest importer of palm oil for the past couple of years, according to the United States Department of Agriculture (USDA). Tribune PK
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Indonesia and Sri Lanka agree to promote PTA negotiations
It (PTA) allows (Indonesia) not only to meet Sri Lanka’s domestic needs, but also to maximize Sri Lanka’s potential as a trade hub and part of a free trade agreement in the Asian region. To.
Jakarta (ANTARA)-Indonesia Ambassador to Sri Lanka Dewi Gustina Tobing and Sri Lanka Trade Minister Bandula Gunawardane have agreed to promote immediate negotiations on a Preferential Trade Agreement (/ PTA) between the two countries.
They reached an agreement at a meeting at the office of the Minister of Trade of Sri Lanka on Friday (February 11, 2022), the Indonesian Embassy in Colombo said in a written statement received in Jakarta on Sunday.
Negotiations on PTA are believed to have a significant impact on strengthening economic and trade relations between the two countries. Worldakkam
---
- Agriculture cess on CPO imports slashed to 5% from 7.5%
- Cut widens duty gap between CPO and refined palm oil
- India's CPO imports could rise, refined could go down
The reduction in the tax, known as the Agriculture Infrastructure and Development Cess (AIDC), will widen the gap between the CPO and refined palm oil import duties, effectively making it cheaper for Indian refiners to import CPO, industry officials told Reuters.
---
Pakistan - The skyrocketing prices of edible oil
Palm oil prices move both ways but people forced to pay higher cooking oil rates
Prices of edible oil, ghee and related products were adjusted upwards several times during the previous year.
In January 2021, cooking oil was sold for Rs289 per kg whereas in January 2022 its price was standing at Rs399 a kg.
Despite the fact that prices of palm oil have fluctuated both ways, but end-consumers have faced only increase in prices of cooking oil.
In the wake of Covid-19, the world is providing relief for its people. On the contrary, Pakistanis are still struggling with sizeable price hikes in the case of edible oil.
Since Pakistan’s edible oil industry has been continuing to depend heavily on imported palm oil, the rise in prices is well understood. It has been the third largest importer of palm oil for the past couple of years, according to the United States Department of Agriculture (USDA). Tribune PK
---
Indonesia and Sri Lanka agree to promote PTA negotiations
It (PTA) allows (Indonesia) not only to meet Sri Lanka’s domestic needs, but also to maximize Sri Lanka’s potential as a trade hub and part of a free trade agreement in the Asian region. To.
Jakarta (ANTARA)-Indonesia Ambassador to Sri Lanka Dewi Gustina Tobing and Sri Lanka Trade Minister Bandula Gunawardane have agreed to promote immediate negotiations on a Preferential Trade Agreement (/ PTA) between the two countries.
They reached an agreement at a meeting at the office of the Minister of Trade of Sri Lanka on Friday (February 11, 2022), the Indonesian Embassy in Colombo said in a written statement received in Jakarta on Sunday.
Negotiations on PTA are believed to have a significant impact on strengthening economic and trade relations between the two countries. Worldakkam
---
Malaysia - Impact on supply chain due to US order on palm oil firms worries MPOC
PETALING JAYA: Malaysia has conveyed its concerns to the US Customs and Border Protection (CBP) agency on how the Withhold Release Order (WRO) issued by the body on two oil palm companies may impact others in the supply chain, said Malaysian Palm Oil Council chairman Larry Sng.
He said this was among the many issues he discussed at the meetings last month that he had with representatives from the US Department of Labour, Senate Committee on Foreign Relations and the State Department in Washington over allegations that the firms were using forced labour.
“Although we didn’t discuss specifics in relation to the companies that were affected by the WRO, we did however discuss supply chain issues. Free Malaysia Today
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India - Government cuts agri cess on crude palm oil
Will help domestic refiners as it widens the gap with refined oil
The Union government has decided to reduce the agricultural infrastructure development cess (AIDC) on crude palm oil (CPO) to 5 per cent effective from February 13 from the current 7.5 per cent which will help it to widen the gap between crude and refined oil. After this reduction, the effective gap will be 8.5 per cent between CPO and RBD palmolein.
The Hindu Businessline
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Indonesia - France's Florence Parly Discusses Bilateral Issues in Jakarta Meeting
TEMPO.CO, Jakarta - The Indonesian Foreign Affairs Ministry's head of the Leadership Strategic Support Bureau (BDSP), Achmad Rizal Purnama, on Thursday said the meeting between Minister Retno Marsudi and France's Armed Forces Minister Florence Parly can be viewed as a sign that both countries are in close bilateral relations.
“The maturity, trust, confidence between the two countries in discussing foreign political issues and defense in one forum surely illustrate how mature the bilateral relations the two have in politics, defense, and security, especially in the Indo-Pacific partnership,” he said on February 10.
The two state ministers, he said, talked about the mutual commitment to cementing bilateral ties and asserted Indonesia’s role in the stability of indo-Pacific. In the meeting, Indonesia hopes for significant developments across the Indonesia-EU Comprehensive Economic Partnership Agreement (I-EU CEPA) during the French presidency of the European Union (EU). The issue of discrimination in the palm oil trade was also raised in Retno's meeting with Parly. Tempo
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Indonesian government rejects proposal to reclassify oil palm estates as forests
The proposal was ostensibly meant to resolve the problem of illegal plantations operating inside forest areas, and would have redefined plantations as forests, and new plantings as reforestation.
The Indonesian government says it has no plans to reclassify oil palms as a forest crop rather than an agricultural one, following a controversial proposal made by the country’s leading forestry university.
“Based on regulations, historical value, academic studies, public discourse and practices [on the ground], oil palms are clearly not a forest crop and the government hasn’t had a plan yet to revise those regulations,” Agus Justianto, the director-general of sustainable forest management at the environment ministry, said in a press release. Eco Business
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Malaysia - Palm Tree Waste as a New Green Adsorbent
Palm tree waste represents one of the most commonly encountered forms of agricultural waste. It is a crucial concern for palm oil and related industries, especially in areas where oil palms are cultivated.
A new study presented in the Sustainability journal explores a new approach to reusing this palm waste by means of a series of chemical activation techniques to develop a new activated carbon using discarded oil palm leaves. This activated carbon is suitable for removing the chemical oxygen demand from produced water via adsorption, affording it a number of practical uses. AZOM
PETALING JAYA: Malaysia has conveyed its concerns to the US Customs and Border Protection (CBP) agency on how the Withhold Release Order (WRO) issued by the body on two oil palm companies may impact others in the supply chain, said Malaysian Palm Oil Council chairman Larry Sng.
He said this was among the many issues he discussed at the meetings last month that he had with representatives from the US Department of Labour, Senate Committee on Foreign Relations and the State Department in Washington over allegations that the firms were using forced labour.
“Although we didn’t discuss specifics in relation to the companies that were affected by the WRO, we did however discuss supply chain issues. Free Malaysia Today
---
India - Government cuts agri cess on crude palm oil
Will help domestic refiners as it widens the gap with refined oil
The Union government has decided to reduce the agricultural infrastructure development cess (AIDC) on crude palm oil (CPO) to 5 per cent effective from February 13 from the current 7.5 per cent which will help it to widen the gap between crude and refined oil. After this reduction, the effective gap will be 8.5 per cent between CPO and RBD palmolein.
The Hindu Businessline
---
Indonesia - France's Florence Parly Discusses Bilateral Issues in Jakarta Meeting
TEMPO.CO, Jakarta - The Indonesian Foreign Affairs Ministry's head of the Leadership Strategic Support Bureau (BDSP), Achmad Rizal Purnama, on Thursday said the meeting between Minister Retno Marsudi and France's Armed Forces Minister Florence Parly can be viewed as a sign that both countries are in close bilateral relations.
“The maturity, trust, confidence between the two countries in discussing foreign political issues and defense in one forum surely illustrate how mature the bilateral relations the two have in politics, defense, and security, especially in the Indo-Pacific partnership,” he said on February 10.
The two state ministers, he said, talked about the mutual commitment to cementing bilateral ties and asserted Indonesia’s role in the stability of indo-Pacific. In the meeting, Indonesia hopes for significant developments across the Indonesia-EU Comprehensive Economic Partnership Agreement (I-EU CEPA) during the French presidency of the European Union (EU). The issue of discrimination in the palm oil trade was also raised in Retno's meeting with Parly. Tempo
---
Indonesian government rejects proposal to reclassify oil palm estates as forests
The proposal was ostensibly meant to resolve the problem of illegal plantations operating inside forest areas, and would have redefined plantations as forests, and new plantings as reforestation.
The Indonesian government says it has no plans to reclassify oil palms as a forest crop rather than an agricultural one, following a controversial proposal made by the country’s leading forestry university.
“Based on regulations, historical value, academic studies, public discourse and practices [on the ground], oil palms are clearly not a forest crop and the government hasn’t had a plan yet to revise those regulations,” Agus Justianto, the director-general of sustainable forest management at the environment ministry, said in a press release. Eco Business
---
Malaysia - Palm Tree Waste as a New Green Adsorbent
Palm tree waste represents one of the most commonly encountered forms of agricultural waste. It is a crucial concern for palm oil and related industries, especially in areas where oil palms are cultivated.
A new study presented in the Sustainability journal explores a new approach to reusing this palm waste by means of a series of chemical activation techniques to develop a new activated carbon using discarded oil palm leaves. This activated carbon is suitable for removing the chemical oxygen demand from produced water via adsorption, affording it a number of practical uses. AZOM
Nigeria - Major oil palm producers rake in combined N85 billion revenue in 2021
Major oil palm producers, Okomu Oil and Presco have reported impressive revenue growth largely on the back of inflationary pressures for the most part of 2021. The two companies reported a combined N85 billion in revenues for the 12 months in 2021, a 79.03% increase when compared to the N47 billion reported in the corresponding period of 2020.
However, taking an individual look at each company reveals that while Okomu Oil generates some of its revenue from the export of rubber along with local sales of oil palm, Presco Plc sticks solely to local sales of its products.
Despite this, Presco generated more revenue than its industry peer, Okomu oil, in 2021. Both companies posted impressive gross margins with Okomu Oil Plc outperforming Presco Plc. Okomu Oil led with 69% while Presco followed closely behind reporting 66% in gross margins in 2021 full year
Naira Metrics
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EU - Proposed EU green jet fuel mandate risks incentivising fraud, MEP warns
A cap should be placed on the amount of low-carbon jet fuel produced from used cooking oil, according to one of the European Parliament’s lawmakers in charge of the bloc’s aviation fuel legislation proposal.
“Some of the sources for used cooking oil are not so well verified,” said Green MEP Jutta Paulus, who warns that incentivising higher quantities of the feedstock would encourage fraud.
“And from a chemical point of view, it’s almost impossible to determine whether this is really used cooking oil, or whether this is palm oil or any other virgin oil,” the German lawmaker told EURACTIV.
“What we’re trying to do is to show with this [proposed] cap that the supply of these biofuels is also limited. We saw in the past that there was a lot of fraud, because it’s incredibly difficult to determine if it really is used cooking oil or if it is a bit of used cooking oil and the rest is palm oil,” she added.
Euractiv
---
EU - EBB calls for more sustainable biodiesel as demand soars
A new European Biodiesel Board (EBB) paper has highlighted how Europe may fail to meet the transport industry’s rising demand for sustainable liquid fuels due to EU biofuel legislation.
The EBB said demand for green liquid fuels in Europe was set to double by 2030 as the EU goes on its decarbonising path in the maritime, aviation and heavy-duty road transport industries.
FuelEU Maritime and the ReFuelEU Aviation mandates will require around 42 million tonnes of oil equivalent to meet the targets set out in the revised renewable energy directive.
The expansion of the EU’s carbon market to private cars, as reported by Euractiv, is additionally expected to boost demand for low-carbon fuels ahead of the mass adoption of zero-emission vehicles across the bloc.
Biofuels News
---
Malaysia - Sime Darby Plantation needs further engagement to resolve forced labour issue, says US Customs
KUALA LUMPUR (Feb 11): The US Customs and Border Protection (CBP) said it welcomes further engagement with Malaysian palm oil giant Sime Darby Plantation Bhd (SDP) on the forced labour finding against the company that was issued late last month.
Speaking during a roundtable with Malaysian media that was held on Thursday night (Feb 10), Deputy Executive Assistant Commissioner of the CBP’s Office of Trade John P Leonard said that “persistent engagement” with the CBP is key to the US government agency modifying or revoking its withhold release order (WRO).
“The key to getting the modification is persistent engagement by the company. [For example,] in the case of Top Glove Corp Bhd, the CEO (chief executive officer) and his deputy really leaned in right from the get go. There was a lot of recurring communication, so that really is key,” he said.
The Edge Markets
---
Malaysia - Willie tells global community to lend helping hand and make palm oil industry sustainable
KUALA LUMPUR (Feb 9): The global community should be offering a helping hand to the palm oil industry should they want the producers to produce sustainable palm oil, Deputy Minister of Plantation Industries and Commodities Datuk Willie Anak Mongin said.
He said it is not right for the global community to only pressure, condemn and criticise the industry instead of giving guidance and resources for the industry to grow sustainably.
“If the global community wants us to produce sustainable palm oil, they should help us and give us space to be sustainable. To be sustainable, it takes time. A lot of things are involved in that process and everything is important during the process. We have to work together,” he said at the question and answer session during the Palm Oil Sustainability Debate@Dubai which was also broadcast via Zoom on Wednesday (Feb 9).
The Edge Markets
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PUBLIC COMMENT ON THE DRAFT REVISED OF THE MSPO CERTIFICATION SCHEME DOCUMENT 20TH JANUARY 2022 TO 19TH FEBRUARY 2022
To improve the effectiveness of the certification scheme, MPOCC will be merging all documents in the MSPO Certification Scheme and the Accreditation Documents for Certification Bodies into a single scheme document with the aims to:
Therefore, MPOCC would like to announce that the Public Comment on the draft revised of the MSPO Certification Scheme document will officially commence from 20th January 2022 to 19th February 2022. During this period, we welcome all parties to share your views and expertise on the draft revised of the MSPO Certification Scheme document which are available for download from our MPOCC website. Please provide your valuable inputs and expertise by using the Public Comment Template and send it directly via email to [email protected] with the title of “Public Comment on the draft revised of the MSPO Certification Scheme Document”.
MPOCC
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Malaysian sustainable palm oil-based products to be available in Dubai
DUBAI (Feb 9): Malaysian palm oil-based products namely food products, cosmetics and pharmaceuticals will be made available at LuLu Hypermarkets in Dubai, following a collaboration sealed between the Malaysia Palm Oil Council (MPOC) and Lulu International Group.
The MPOC and the Indian multinational conglomerate, which operates 224 retail stores in 22 countries worldwide, has signed a memorandum of understanding (MoU) during the opening of the Sustainable Agricommodities (Food Agricommodities) Week at the Malaysia Pavilion in Expo 2020 Dubai.
As part of the partnership, MPOC’s global consumer campaign, called the Malaysian Palm Oil Full of Goodness campaign, was launched at the Lulu Hypermarket at Silicon Oasis here on Wednesday (Feb 9).
The Edge Markets
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Indonesia expands domestic market obligations to cover all palm oil exports
Indonesia expanded the scope of a January ruling, which required suppliers to declare their export plans of crude palm oil, olein and used cooking oil, to include all palm oil products, the country's trade ministry said Feb. 9.
From Feb. 15 all palm products must comply with the Domestic Market Order (DMO) before suppliers can get permits to export, Indonesia's ministry of trade said.
On Jan. 27 Indonesia issued a mandate for palm oil producers to set aside 20% of their crude palm oil shipments for local buyers as the world's largest vegetable oil producer and exporter tries to curb high domestic edible oil prices.
While Indonesia typically consumes less than 40% of the 46 million - 48 million mt of crude palm oil, or CPO, that it produces, domestic cooking oil prices have surged in the past year as local prices rose on the back of record surges in international vegetable oil markets through 2021.
SP Global
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Indonesian UCO exporters contest new regulation
Exporters of used cooking oil (UCO) in Indonesia have formed an association to lobby against new regulations which require proof of domestic sales to obtain export licences, according to industry sources.
The 13-company association represents 90% of the country’s 25,000-30,000 tonnes/month UCO export capacity, according to its newly-elected chairman Setiady Goenawan, director of collection firm CV Artha Metro Oil.
Members were hoping an audience with the country’s trade ministry would persuade it to drop domestic sales obligation rules for the UCO sector, the 25 January Argus Media report said.
Under new regulations introduced in January, exporters of UCO, palm olein and crude palm oil (CPO) must submit proof of domestic sales to obtain export licenses.
Billed as a step to ease cooking oil prices by ensuring domestic supply at subsidised rates, market participants were unsure why UCO had been included in the ruling as UCO exporters were generally not involved in palm oil production and did not have access to olein for domestic retailing, the report said.
“We already help poor people by buying their waste oil, why do we also need to buy and sell olein under these rules?” Goenawan said.
OFI Magazine
Major oil palm producers, Okomu Oil and Presco have reported impressive revenue growth largely on the back of inflationary pressures for the most part of 2021. The two companies reported a combined N85 billion in revenues for the 12 months in 2021, a 79.03% increase when compared to the N47 billion reported in the corresponding period of 2020.
However, taking an individual look at each company reveals that while Okomu Oil generates some of its revenue from the export of rubber along with local sales of oil palm, Presco Plc sticks solely to local sales of its products.
Despite this, Presco generated more revenue than its industry peer, Okomu oil, in 2021. Both companies posted impressive gross margins with Okomu Oil Plc outperforming Presco Plc. Okomu Oil led with 69% while Presco followed closely behind reporting 66% in gross margins in 2021 full year
Naira Metrics
---
EU - Proposed EU green jet fuel mandate risks incentivising fraud, MEP warns
A cap should be placed on the amount of low-carbon jet fuel produced from used cooking oil, according to one of the European Parliament’s lawmakers in charge of the bloc’s aviation fuel legislation proposal.
“Some of the sources for used cooking oil are not so well verified,” said Green MEP Jutta Paulus, who warns that incentivising higher quantities of the feedstock would encourage fraud.
“And from a chemical point of view, it’s almost impossible to determine whether this is really used cooking oil, or whether this is palm oil or any other virgin oil,” the German lawmaker told EURACTIV.
“What we’re trying to do is to show with this [proposed] cap that the supply of these biofuels is also limited. We saw in the past that there was a lot of fraud, because it’s incredibly difficult to determine if it really is used cooking oil or if it is a bit of used cooking oil and the rest is palm oil,” she added.
Euractiv
---
EU - EBB calls for more sustainable biodiesel as demand soars
A new European Biodiesel Board (EBB) paper has highlighted how Europe may fail to meet the transport industry’s rising demand for sustainable liquid fuels due to EU biofuel legislation.
The EBB said demand for green liquid fuels in Europe was set to double by 2030 as the EU goes on its decarbonising path in the maritime, aviation and heavy-duty road transport industries.
FuelEU Maritime and the ReFuelEU Aviation mandates will require around 42 million tonnes of oil equivalent to meet the targets set out in the revised renewable energy directive.
The expansion of the EU’s carbon market to private cars, as reported by Euractiv, is additionally expected to boost demand for low-carbon fuels ahead of the mass adoption of zero-emission vehicles across the bloc.
Biofuels News
---
Malaysia - Sime Darby Plantation needs further engagement to resolve forced labour issue, says US Customs
KUALA LUMPUR (Feb 11): The US Customs and Border Protection (CBP) said it welcomes further engagement with Malaysian palm oil giant Sime Darby Plantation Bhd (SDP) on the forced labour finding against the company that was issued late last month.
Speaking during a roundtable with Malaysian media that was held on Thursday night (Feb 10), Deputy Executive Assistant Commissioner of the CBP’s Office of Trade John P Leonard said that “persistent engagement” with the CBP is key to the US government agency modifying or revoking its withhold release order (WRO).
“The key to getting the modification is persistent engagement by the company. [For example,] in the case of Top Glove Corp Bhd, the CEO (chief executive officer) and his deputy really leaned in right from the get go. There was a lot of recurring communication, so that really is key,” he said.
The Edge Markets
---
Malaysia - Willie tells global community to lend helping hand and make palm oil industry sustainable
KUALA LUMPUR (Feb 9): The global community should be offering a helping hand to the palm oil industry should they want the producers to produce sustainable palm oil, Deputy Minister of Plantation Industries and Commodities Datuk Willie Anak Mongin said.
He said it is not right for the global community to only pressure, condemn and criticise the industry instead of giving guidance and resources for the industry to grow sustainably.
“If the global community wants us to produce sustainable palm oil, they should help us and give us space to be sustainable. To be sustainable, it takes time. A lot of things are involved in that process and everything is important during the process. We have to work together,” he said at the question and answer session during the Palm Oil Sustainability Debate@Dubai which was also broadcast via Zoom on Wednesday (Feb 9).
The Edge Markets
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PUBLIC COMMENT ON THE DRAFT REVISED OF THE MSPO CERTIFICATION SCHEME DOCUMENT 20TH JANUARY 2022 TO 19TH FEBRUARY 2022
To improve the effectiveness of the certification scheme, MPOCC will be merging all documents in the MSPO Certification Scheme and the Accreditation Documents for Certification Bodies into a single scheme document with the aims to:
- To provide more clarity on the roles & responsibilities of the stakeholders involved in the MSPO Scheme.
- To strengthen the scheme to meet the robust revised standards.
- To enhance the authority of MPOCC as a scheme owner of MSPO to increase and maintain the trust & reputation among the stakeholders.
- To govern MSPO Scheme with accountability.
Therefore, MPOCC would like to announce that the Public Comment on the draft revised of the MSPO Certification Scheme document will officially commence from 20th January 2022 to 19th February 2022. During this period, we welcome all parties to share your views and expertise on the draft revised of the MSPO Certification Scheme document which are available for download from our MPOCC website. Please provide your valuable inputs and expertise by using the Public Comment Template and send it directly via email to [email protected] with the title of “Public Comment on the draft revised of the MSPO Certification Scheme Document”.
MPOCC
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Malaysian sustainable palm oil-based products to be available in Dubai
DUBAI (Feb 9): Malaysian palm oil-based products namely food products, cosmetics and pharmaceuticals will be made available at LuLu Hypermarkets in Dubai, following a collaboration sealed between the Malaysia Palm Oil Council (MPOC) and Lulu International Group.
The MPOC and the Indian multinational conglomerate, which operates 224 retail stores in 22 countries worldwide, has signed a memorandum of understanding (MoU) during the opening of the Sustainable Agricommodities (Food Agricommodities) Week at the Malaysia Pavilion in Expo 2020 Dubai.
As part of the partnership, MPOC’s global consumer campaign, called the Malaysian Palm Oil Full of Goodness campaign, was launched at the Lulu Hypermarket at Silicon Oasis here on Wednesday (Feb 9).
The Edge Markets
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Indonesia expands domestic market obligations to cover all palm oil exports
Indonesia expanded the scope of a January ruling, which required suppliers to declare their export plans of crude palm oil, olein and used cooking oil, to include all palm oil products, the country's trade ministry said Feb. 9.
From Feb. 15 all palm products must comply with the Domestic Market Order (DMO) before suppliers can get permits to export, Indonesia's ministry of trade said.
On Jan. 27 Indonesia issued a mandate for palm oil producers to set aside 20% of their crude palm oil shipments for local buyers as the world's largest vegetable oil producer and exporter tries to curb high domestic edible oil prices.
While Indonesia typically consumes less than 40% of the 46 million - 48 million mt of crude palm oil, or CPO, that it produces, domestic cooking oil prices have surged in the past year as local prices rose on the back of record surges in international vegetable oil markets through 2021.
SP Global
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Indonesian UCO exporters contest new regulation
Exporters of used cooking oil (UCO) in Indonesia have formed an association to lobby against new regulations which require proof of domestic sales to obtain export licences, according to industry sources.
The 13-company association represents 90% of the country’s 25,000-30,000 tonnes/month UCO export capacity, according to its newly-elected chairman Setiady Goenawan, director of collection firm CV Artha Metro Oil.
Members were hoping an audience with the country’s trade ministry would persuade it to drop domestic sales obligation rules for the UCO sector, the 25 January Argus Media report said.
Under new regulations introduced in January, exporters of UCO, palm olein and crude palm oil (CPO) must submit proof of domestic sales to obtain export licenses.
Billed as a step to ease cooking oil prices by ensuring domestic supply at subsidised rates, market participants were unsure why UCO had been included in the ruling as UCO exporters were generally not involved in palm oil production and did not have access to olein for domestic retailing, the report said.
“We already help poor people by buying their waste oil, why do we also need to buy and sell olein under these rules?” Goenawan said.
OFI Magazine
GLOBAL - The steady boom in renewable diesel continues
Tom Fox, head of renewable fuels, OTX, outlines how as the world emerges from the Covid pandemic, the renewable diesel (RD) market will continue its steady boom this year.
He said: "Despite challenges, RD and its related process product sustainable aviation fuel (SAF) have proven to be superior biofuels — no alternative in the low-carbon-liquid-fuel space can compete against its mature technology, high diesel-quality specifications, proven supply distribution, ability to attract finance, and future-proof strength in decarbonising the fuel demand that cannot yet electrify. Even though it has no real competition, RD is not immune from risk and 2022 will test the limits of its success.
Biofuels News
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Malaysia - MPOC, Lulu International inks partnership to promote Malaysian palm oil-based products in Dubai
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) and Lulu International Group are partnering to promote Malaysian palm oil-based products at Lulu Hypermarkets in Dubai.
Both parties have entered into a partnership via a memorandum of understanding (MoU) signed during the opening of the Sustainable Agricommodities (Food Agricommodities) Week at the Malaysia Pavilion in Expo 2020 Dubai.
The MoU was exchanged between MPOC Board of Trustees member Jamil Haron and Lulu Group International chief operating officer Abdul Salem VI, witnessed by Plantation Industries and Commodities Deputy Minister Datuk Willie Mongin.
MPOC's global consumer campaign - the Malaysian Palm Oil Full of Goodness - was also launched at the Lulu Hypermarket at Silicon Oasis today.
New Straits Times
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Malaysia - Tight supply to further lift crude palm oil prices
PETALING JAYA: A prolonged tightness in the palm oil supply is expected to push the price of the commodity higher, which is a short-term positive for local planters.
According to CGS-CIMB Research, factors such as the recent crude palm oil (CPO) export ruling in Indonesia, drought in South America, delays in foreign worker intake in Malaysia and the low production season in the first quarter of 2022 have led to a tight supply situation.
The research house in its latest report also envisaged that Malaysia’s palm oil stocks will fall by 1.2% month-on-month (m-o-m) to 1.56 million tonnes as at end-January 2022 due to weaker output.
The official palm oil statistics for January 2022 will be released by the Malaysian Palm Oil Board on Feb 10.
The StarMY
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India struggles to contain vegoil prices as Indonesia restricts exports
MUMBAI, Dec 20 (Reuters) - India's market regulator ordered a year-long suspension of futures trading in key farm commodities on Monday, as the world's biggest importer of vegetable oils, and a major producer of wheat and rice, struggles to tame food inflation.
India's most dramatic move since allowing futures trade in 2003 threatens market confidence by making hedging difficult at a time of record highs in producer prices, weeks after farmers ended protests that led to the scrapping of contentious reforms.
Reuters
Tom Fox, head of renewable fuels, OTX, outlines how as the world emerges from the Covid pandemic, the renewable diesel (RD) market will continue its steady boom this year.
He said: "Despite challenges, RD and its related process product sustainable aviation fuel (SAF) have proven to be superior biofuels — no alternative in the low-carbon-liquid-fuel space can compete against its mature technology, high diesel-quality specifications, proven supply distribution, ability to attract finance, and future-proof strength in decarbonising the fuel demand that cannot yet electrify. Even though it has no real competition, RD is not immune from risk and 2022 will test the limits of its success.
Biofuels News
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Malaysia - MPOC, Lulu International inks partnership to promote Malaysian palm oil-based products in Dubai
KUALA LUMPUR: The Malaysian Palm Oil Council (MPOC) and Lulu International Group are partnering to promote Malaysian palm oil-based products at Lulu Hypermarkets in Dubai.
Both parties have entered into a partnership via a memorandum of understanding (MoU) signed during the opening of the Sustainable Agricommodities (Food Agricommodities) Week at the Malaysia Pavilion in Expo 2020 Dubai.
The MoU was exchanged between MPOC Board of Trustees member Jamil Haron and Lulu Group International chief operating officer Abdul Salem VI, witnessed by Plantation Industries and Commodities Deputy Minister Datuk Willie Mongin.
MPOC's global consumer campaign - the Malaysian Palm Oil Full of Goodness - was also launched at the Lulu Hypermarket at Silicon Oasis today.
New Straits Times
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Malaysia - Tight supply to further lift crude palm oil prices
PETALING JAYA: A prolonged tightness in the palm oil supply is expected to push the price of the commodity higher, which is a short-term positive for local planters.
According to CGS-CIMB Research, factors such as the recent crude palm oil (CPO) export ruling in Indonesia, drought in South America, delays in foreign worker intake in Malaysia and the low production season in the first quarter of 2022 have led to a tight supply situation.
The research house in its latest report also envisaged that Malaysia’s palm oil stocks will fall by 1.2% month-on-month (m-o-m) to 1.56 million tonnes as at end-January 2022 due to weaker output.
The official palm oil statistics for January 2022 will be released by the Malaysian Palm Oil Board on Feb 10.
The StarMY
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India struggles to contain vegoil prices as Indonesia restricts exports
MUMBAI, Dec 20 (Reuters) - India's market regulator ordered a year-long suspension of futures trading in key farm commodities on Monday, as the world's biggest importer of vegetable oils, and a major producer of wheat and rice, struggles to tame food inflation.
India's most dramatic move since allowing futures trade in 2003 threatens market confidence by making hedging difficult at a time of record highs in producer prices, weeks after farmers ended protests that led to the scrapping of contentious reforms.
Reuters
WTO - Members note work in three environment initiatives and discuss anti-deforestation efforts
At the 2 February meeting of the Committee on Trade and Environment (CTE), WTO members received briefings on the three new environmental initiatives launched on 15 December 2021 at the WTO. Members also discussed in-depth the respective efforts of the European Union and the United Kingdom to prevent global deforestation by regulating trade in agriculture.
Efforts against deforestation
The European Union provided an update on the European Commission's legislative proposal on deforestation as part of a broader update on the European Green Deal. The EU said the objective of the deforestation proposal is to minimize the risk that products associated with deforestation and forest degradation are placed on the EU market.
WTO
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French Presidency on a crusade to set global trade standards based on fair and green objectives
In a climate of global uncertainty fuelled by and geo-economic tensions and supply chain issues linked to the pandemic, the French Presidency of the European Union is pressing ahead with trade initiatives designed to enhance the EU’s “open strategic autonomy”. This Brussels concept points to an EU trade policy that goes beyond the traditional goal of removing barriers and ensuring market access, in favour of a broader approach taking into account environmental goals and sustainable development. It is an approach already outlined in the European Commission’s February 2021 Communication on the Trade Policy Review, which put forward a more assertive role for trade policy in support of the EU’s green and digital transformations of the economy.
Mirror clauses
France is taking the opportunity of its six-month Presidency of the Council of the EU to make progress towards “strategic autonomy” and further with the Union’s ambition to become a global standard setter in the field of trade. The French Presidency’s more assertively protective approach to trade is evident in its proposal to introduce “mirror clauses”. Such clauses would require trade partners to mirror the EU’s own production standards so that European farmers, for example, are not undercut by the prices offered by producers from other third countries who are not obliged to adhere to the same environmental rules. The French presidency programme explains that the aim is to “ensure that imported products are subject to the manufacturing standards in force within the EU, whenever this is necessary, to heighten protection of health and the environment, in compliance with WTO rules” by proposing mirror clause measures to ensure reciprocity in trade standards.
Lexology
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Malaysian growers benefit from Indonesia’s new export ruling
KUALA LUMPUR: Malaysian oil palm growers are benefitting from Indonesia’s new export policy through higher crude palm oil (CPO) prices, says Maybank Investment Bank (Maybank IB).
Indonesia’s new export ruling that came into effect on Jan 27, 2022, has widened the domestic CPO price gap between Malaysia and Indonesia by RM246 per tonne to RM1,378 per tonne on Feb 3, from RM1,132 per tonne on Jan 27, it said in a research note yesterday.
On Jan 27, Indonesia’s Trade Minister Muhammad Lutfi said exporters must set aside 20% of their shipments for domestic market obligation to ensure sufficient cooking oil supply in the local market at affordable prices.
The StarMY
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Thailand’s Oil Palm Board resolves to adjust biodiesel mixture from B7 to B5 for 2 months
The National Oil Palm Board has resolved to adjust the mixture of biodiesel from B7 to B5 for two months, in order to maintain the consumption level of diesel fuel amid rising global fuel prices.
According to the Office of Agricultural Economics (OAE), the decision was made by the Energy Policy and Planning Office and was acknowledged by the Ministry of Energy during the palm board’s latest meeting, chaired by Deputy Prime Minister General Prawit Wongsuwan.
The Ministry of Energy backed the decision, stating that oil palm production is likely to be between 120,000 and 140,000 metric tons over the next couple of months, which is lower than the yearly average. It added that lowering the biodiesel content should help keep oil palm prices stable and protect farmers from any price drops.
Pattaya Mail
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India aims to increase area under palm oil cultivation to 6.5 lakh hectares: PM Modi
Sangareddy: Appreciating Telangana’s massive plans on oil-palm cultivation, Prime Minister Narendra Modi said that the Centre will certainly extend support to Telangana in enhancing the oil palm cultivation in the State.
He said the union government was aiming to improve the area under palm oil cultivation in India by 6.5 lakh hectares in the coming few years as part of the Atma Nirman Bharat resolutions. He said all support will be extended to the oil palm farmers in the country with various initiatives.
Speaking at the launch of the 50th anniversary celebrations of ICRISAT, Modi said that the Centre was also going to develop the post-harvesting infrastructure in a big way in the coming days. He said an agriculture infrastructure fund of Rs 1 lakh crore will be available in the budget for this purpose. Telangana Today
Malaysia - Zuraida: Govt committed to safeguarding long-term interests of palm oil industry
KUALA LUMPUR (Feb 5): The Ministry of Plantation Industries and Commodities (MPIC) will continue to work hard to ensure that long-term interests of the palm oil industry are safeguarded as well as assist palm oil smallholders and other stakeholders.
This is despite the sanctions imposed by the US and the European Union on Malaysian palm oil, Minister Datuk Zuraida Kamaruddin said.
She added that the MPIC will strive to expand the Malaysian palm oil market to overseas markets, especially in West Asia, such as in Turkey and Saudi Arabia. The Edge Markets
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Malaysia - Record high CPO price brings huge profits to smallholders nationwide
KUALA LUMPUR: The rise in crude palm oil (CPO) price to record high in recent days has seen smallholders benefit nationwide.
This was after price of Crude Palm Oil (CPO) hit an all-time-high of RM5,750 per tonnes for two consecutive days on Feb 3 and 4, a first in the history of the national palm oil industry,
This in turn brought in huge profits to about 400,000 smallholders nationwide said Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin.
She said this is a testament to the commitment and dedication of the Plantation Industries and Commodities (MPIC) through the Malaysian Palm Oil Board (MPOB) and Malaysian Palm Oil Council (MPOC), together with the Malaysian Palm Oil Certification Council (MPOCC) to help the rakyat through various initiatives and Government policies. New Straits Times
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India imposes stock limit on oilseeds, edible oils
MUMBAI, Feb 4 (Reuters) - India has imposed limits on oilseeds and edible oils stocks that traders and processors can hold in an attempt to check hoarding and arrest rising prices, the government said in a statement.
For edible oils, the limit would be three tonnes for retailers and 50 tonnes for wholesaler and it would be applicable until June 30, it said. Oilseed processors could hold stocks up to 90 days of their daily production capacity.
India is the world's biggest importer of edible oils and prices of cooking oils have risen sharply because of a rally in global prices.
While India buys palm oil from Indonesia and Malaysia, it mainly imports soyoil from Argentina and Brazil and sunflower oil from Russia and Ukraine. Nasdaq/ Reuters
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At the 2 February meeting of the Committee on Trade and Environment (CTE), WTO members received briefings on the three new environmental initiatives launched on 15 December 2021 at the WTO. Members also discussed in-depth the respective efforts of the European Union and the United Kingdom to prevent global deforestation by regulating trade in agriculture.
Efforts against deforestation
The European Union provided an update on the European Commission's legislative proposal on deforestation as part of a broader update on the European Green Deal. The EU said the objective of the deforestation proposal is to minimize the risk that products associated with deforestation and forest degradation are placed on the EU market.
WTO
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French Presidency on a crusade to set global trade standards based on fair and green objectives
In a climate of global uncertainty fuelled by and geo-economic tensions and supply chain issues linked to the pandemic, the French Presidency of the European Union is pressing ahead with trade initiatives designed to enhance the EU’s “open strategic autonomy”. This Brussels concept points to an EU trade policy that goes beyond the traditional goal of removing barriers and ensuring market access, in favour of a broader approach taking into account environmental goals and sustainable development. It is an approach already outlined in the European Commission’s February 2021 Communication on the Trade Policy Review, which put forward a more assertive role for trade policy in support of the EU’s green and digital transformations of the economy.
Mirror clauses
France is taking the opportunity of its six-month Presidency of the Council of the EU to make progress towards “strategic autonomy” and further with the Union’s ambition to become a global standard setter in the field of trade. The French Presidency’s more assertively protective approach to trade is evident in its proposal to introduce “mirror clauses”. Such clauses would require trade partners to mirror the EU’s own production standards so that European farmers, for example, are not undercut by the prices offered by producers from other third countries who are not obliged to adhere to the same environmental rules. The French presidency programme explains that the aim is to “ensure that imported products are subject to the manufacturing standards in force within the EU, whenever this is necessary, to heighten protection of health and the environment, in compliance with WTO rules” by proposing mirror clause measures to ensure reciprocity in trade standards.
Lexology
---
Malaysian growers benefit from Indonesia’s new export ruling
KUALA LUMPUR: Malaysian oil palm growers are benefitting from Indonesia’s new export policy through higher crude palm oil (CPO) prices, says Maybank Investment Bank (Maybank IB).
Indonesia’s new export ruling that came into effect on Jan 27, 2022, has widened the domestic CPO price gap between Malaysia and Indonesia by RM246 per tonne to RM1,378 per tonne on Feb 3, from RM1,132 per tonne on Jan 27, it said in a research note yesterday.
On Jan 27, Indonesia’s Trade Minister Muhammad Lutfi said exporters must set aside 20% of their shipments for domestic market obligation to ensure sufficient cooking oil supply in the local market at affordable prices.
The StarMY
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Thailand’s Oil Palm Board resolves to adjust biodiesel mixture from B7 to B5 for 2 months
The National Oil Palm Board has resolved to adjust the mixture of biodiesel from B7 to B5 for two months, in order to maintain the consumption level of diesel fuel amid rising global fuel prices.
According to the Office of Agricultural Economics (OAE), the decision was made by the Energy Policy and Planning Office and was acknowledged by the Ministry of Energy during the palm board’s latest meeting, chaired by Deputy Prime Minister General Prawit Wongsuwan.
The Ministry of Energy backed the decision, stating that oil palm production is likely to be between 120,000 and 140,000 metric tons over the next couple of months, which is lower than the yearly average. It added that lowering the biodiesel content should help keep oil palm prices stable and protect farmers from any price drops.
Pattaya Mail
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India aims to increase area under palm oil cultivation to 6.5 lakh hectares: PM Modi
Sangareddy: Appreciating Telangana’s massive plans on oil-palm cultivation, Prime Minister Narendra Modi said that the Centre will certainly extend support to Telangana in enhancing the oil palm cultivation in the State.
He said the union government was aiming to improve the area under palm oil cultivation in India by 6.5 lakh hectares in the coming few years as part of the Atma Nirman Bharat resolutions. He said all support will be extended to the oil palm farmers in the country with various initiatives.
Speaking at the launch of the 50th anniversary celebrations of ICRISAT, Modi said that the Centre was also going to develop the post-harvesting infrastructure in a big way in the coming days. He said an agriculture infrastructure fund of Rs 1 lakh crore will be available in the budget for this purpose. Telangana Today
Malaysia - Zuraida: Govt committed to safeguarding long-term interests of palm oil industry
KUALA LUMPUR (Feb 5): The Ministry of Plantation Industries and Commodities (MPIC) will continue to work hard to ensure that long-term interests of the palm oil industry are safeguarded as well as assist palm oil smallholders and other stakeholders.
This is despite the sanctions imposed by the US and the European Union on Malaysian palm oil, Minister Datuk Zuraida Kamaruddin said.
She added that the MPIC will strive to expand the Malaysian palm oil market to overseas markets, especially in West Asia, such as in Turkey and Saudi Arabia. The Edge Markets
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Malaysia - Record high CPO price brings huge profits to smallholders nationwide
KUALA LUMPUR: The rise in crude palm oil (CPO) price to record high in recent days has seen smallholders benefit nationwide.
This was after price of Crude Palm Oil (CPO) hit an all-time-high of RM5,750 per tonnes for two consecutive days on Feb 3 and 4, a first in the history of the national palm oil industry,
This in turn brought in huge profits to about 400,000 smallholders nationwide said Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin.
She said this is a testament to the commitment and dedication of the Plantation Industries and Commodities (MPIC) through the Malaysian Palm Oil Board (MPOB) and Malaysian Palm Oil Council (MPOC), together with the Malaysian Palm Oil Certification Council (MPOCC) to help the rakyat through various initiatives and Government policies. New Straits Times
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India imposes stock limit on oilseeds, edible oils
MUMBAI, Feb 4 (Reuters) - India has imposed limits on oilseeds and edible oils stocks that traders and processors can hold in an attempt to check hoarding and arrest rising prices, the government said in a statement.
For edible oils, the limit would be three tonnes for retailers and 50 tonnes for wholesaler and it would be applicable until June 30, it said. Oilseed processors could hold stocks up to 90 days of their daily production capacity.
India is the world's biggest importer of edible oils and prices of cooking oils have risen sharply because of a rally in global prices.
While India buys palm oil from Indonesia and Malaysia, it mainly imports soyoil from Argentina and Brazil and sunflower oil from Russia and Ukraine. Nasdaq/ Reuters
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Global - Advocates Flag Greenwashing, Social Justice Concerns as Big Polluters Lean on Carbon Offsets
Green go-betweens—or companies that connect corporations and governments with reforestation programs to get them to net-zero—are touting carbon credit projects as a “critical intervention” to meet climate goals. But some experts warn that helping heavy polluters greenwash their image could obscure bigger problems, including their unchecked greenhouse gas emissions. “Carbon credits can help finance projects that reduce or remove GHG emissions from the atmosphere,” says Visual Capitalist in a post sponsored by Carbon Streaming Corporation, promoting various types of carbon projects from improved forest management to reforestation across wetlands, grasslands, and forests. The post explains that the world’s forests absorb roughly 15.6 billion tonnes of carbon dioxide annually—around 40% of the global emissions produced each year—which they store in plants’ roots and leaves, as well as soil. Wetlands are also significant carbon sinks, holding 20 to 30% of all estimated soil carbon, even though they occupy only 5-8% of global land area. The Energy Mix |
Thailand terminates biodiesel B10 on expensive palm oil
The Energy Policy Administration Committee (EPAC) resolved to terminate biodiesel B10 and introduce biodiesel B5 due to the high price of palm oil. Energy Minister Supattanapong Punmeechaow, as head of the committee, said that the higher prices of crude oil and purified biodiesel (B100) raised the cost of local diesel and affected people’s cost of living. To cope with the impacts, the committee reduced the content of palm oil-based methyl ester in diesel to 5% from Feb 5 to March 31 and terminated biodiesel B10. Besides, the committee ordered the sales of biodiesel B7 and B20 for heavy trucks from this year to next year and from 2024 onwards only biodiesel B7 would be available for heavy trucks. (TNA) Pattaya Mail |
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Indonesia - Challenges & Potential of Indonesia's Biodiesel & Bioethanol Programs
Biodiesel, which is a form of diesel fuel that is derived from plants or animals (in the case of Indonesia it mainly uses fatty acid methyl ether, FAME, which is derived from palm oil), has been on the political agenda of Indonesia since the 1990s when the first (in-depth) research was conducted by a number of state agencies. When global oil prices started to rise profoundly in the mid-2000s, studies became more serious as the government – back then under the leadership of President Susilo Bambang Yudhoyono (SBY) – started to feel massive pressures due to ballooning fuel subsidies as domestic fuel demand soared (amid the country’s rapid economic expansion), while Indonesia’s oil production has been in a state of decline ever since the mid-1990s, thus causing the growing need for oil and fuel imports into Indonesia (turning the nation into a net oil importer in the mid-2000s). Indonesia Investments |
Colombia faces challenges to keep its palm oil sustainable
As Colombia's palm oil production hits record highs, maintaining and improving its good record for sustainability will require effort il palm was first was first planted in Colombia in the 1930s, and since commercial crop operations began to take off mid-century, the country has grown into the world's fourth largest producer and exporter of palm oil, and the largest in the Americas. But much like in other leading palm nations, such as top producers Indonesia and Malaysia, the crop’s expansion has often come with controversy, and social and environmental costs. In Colombia, these impacts may compound existing problems of inadequate infrastructure, deforestation and land grabbing, as well as insecurity due to the presence of armed groups and illicit drug crops. Dialogo Chino |
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Malaysia - MPIC looks to resolve issues with US CBP soon over Sime Darby Plantation
KUALA LUMPUR: The government is closely monitoring the recent action taken by the United States Customs and Border Protection agency (CBP) against Sime Darby Plantation (SDP). Plantation, Industries and Commodities (MPIC) Minister Datuk Zuraida Kamaruddin said they have been informed that the CBP had revised its action against SDP from "Withhold Release Order (WRO)" to "Findings". Under "WRO", products can still land on US soil but cannot be traded or processed. With the notice of "Finding", any products of SDP found on US soil will be confiscated. "MPIC is keeping a close watch on the CBP's recent action against SDP. "SDP was in the midst of compiling a comprehensive independent report for submission purposes and the CBP's action is most regrettable," said Zuraida in a statement today. She said MPIC will seek clarity on this issue with related agencies in the US, with a view of resolving it. New Straits Times |
Indonesia - Amnesty seeks tighter control of palm oil industry after ‘human cage’ finding
Amnesty International Indonesia is urging the government — and the police in particular — to tighten supervision of the palm oil industry following the finding of a human cage with at least 27 people living there at the home of non-active Langkat Regent Terbit Rencana Perangin Angin, reports CNN Indonesia. Amnesty International executive director Usman Hamid said that greater supervision of the palm oil industry was needed because the business sector was prone to exploitation of workers, traditional communities and the environment. “Moreover this is not the first time that the exploitation of workers has occurred in Indonesia’s palm oil industry. In 2016, Amnesty International found serious human rights violations at several palm oil plantations in Indonesia,” he said in a media release. “The findings included forced labour, the use of child labour, gender discrimination and labour practices which were exploitative and endangered workers.” Asia Pacific Report |
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Thailand - Thailand checks oil palm inventory to prevent stockpiling and price hikes
Authorities have ordered relevant government agencies to check up on the current inventory of oil palm in the country, as part of efforts to prevent stockpiling and mitigate rising prices. Government Spokesperson Thanakorn Wangboonkongchana said Prime Minister Gen Prayut Chan-o-cha expressed concerns over rising palm oil prices driven by low production output. The premier has urged relevant agencies, including the Ministry of Commerce and the Ministry of Agriculture and Cooperatives, to inspect the inventory of oil palm at warehouses nationwide. Commercial affairs offices are also working with the police to inspect storage facilities, extraction plants and refineries to prevent stockpiling. Pattaya Mail |
Indonesia - Why cheap cooking oil comes at a high price
The single-price policy for all domestically produced, palm-fruit-based cooking oil came into force last week with little to no debate. To make cooking oil – an important staple in local cuisine – affordable to everyone, the government has fixed the price at Rp 14,000 (97 US cents) a liter nationwide for the next six months. Without a thorough public discussion, we cannot know whether this is a good policy or not. Soaring global prices of palm oil, the main ingredient for cooking oil in Indonesia, mean producers would rather sell abroad than on a home market where they cannot sell at market price. The Jakarta Post |
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Palm Oil News. CSPO Watch - February 2022