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Colombia is emerging as a critical alternative palm oil supplier for India as the world's leading producers, Indonesia and Malaysia, accelerate their biodiesel blending mandates. This shift toward biofuels threatens to limit the availability of palm oil for food consumption, prompting India's edible oil industry to diversify its sourcing.
Angshu Mallick, President of the Solvent Extractors' Association of India (SEA), stated on Wednesday that Colombia, the world's fourth-largest palm oil producer, offers significant potential for deeper trade engagement. Mallick noted that Colombia has already supplied approximately 200,000 tonnes of palm oil to India in recent years, highlighting its role in broadening the import base for the world's largest vegetable oil buyer.
To formalize this relationship, the SEA intends to dispatch a high-level delegation to Colombia early next year. The association also anticipates signing a memorandum of understanding with Fedepalma, Colombia's national federation of oil palm growers, to establish a framework for closer industry cooperation. Beyond South America, Mallick revealed that the association has signed a statement of interest with the government of Mozambique's Nampula province to explore a sustainable trade corridor for oilseeds and vegetable oils.
Addressing the broader market dynamics, Mallick emphasized that the sector is navigating a volatile global environment shaped by biofuel policies and shifting trade flows. He advocated for diversified sourcing and a boost in domestic Indian oilseed production. In line with this, he welcomed the government's increased minimum support prices (MSP) for the 2027-2028 rabi marketing season. The MSP for rapeseed and mustard was raised by Rs 413 to Rs 6,613 per quintal, while Safflower saw a hike of Rs 675 to Rs 7,215 per quintal. However, Mallick cautioned that the success of these measures hinges on efficient procurement and market access for farmers.
Data from the SEA shows that India's edible oil imports reached 15.16 million tonnes during the first 11 months of the 2025-26 marketing year, which commenced in November.
Source: PTI