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India is actively seeking to broaden its palm oil supply base as primary exporters Indonesia and Malaysia pivot toward higher biodiesel blending mandates. This strategic shift, reported by Business Standard, threatens to redirect substantial palm oil volumes into fuel production, potentially tightening global availability for food consumption.
Colombia has surfaced as a key strategic partner for India as the South Asian nation works to solidify its edible oil security. A high-level delegation from the Solvent Extractors’ Association of India (SEA), the nation's premier body for oilseed refiners and processors, is scheduled to visit Colombia early next year to investigate new trade opportunities and cooperative ventures.
Formal ties are expected to be cemented soon through a Memorandum of Understanding (MoU) between SEA and Fedepalma, Colombia’s National Federation of Oil Palm Growers. This agreement aims to catalyze a fresh era of bilateral engagement in the sector, building on momentum from a high-level meeting held during the 29th Globoil conference in Mumbai.
According to SEA data, Colombia holds the position of the world’s fourth-largest palm oil producer and the leader in Latin America, with an annual output reaching nearly 2 million tonnes. While India has historically imported an average of 200,000 tonnes from Colombia annually, industry leaders believe there is significant capacity to expand these volumes.
SEA President Angshu Mallick noted that the invitation to explore Colombian markets is a promising development. The timing is particularly critical as India recently lowered import duties on crude edible oils to manage domestic affordability during the peak festive season.
As the world's leading consumer of vegetable oils, India’s imports reached approximately 13.61 million tonnes during the first ten months of the 2025-26 marketing year (November 2025 to August 2026), marking a 4.53% increase year-on-year. Palm oil constituted 6.53 million tonnes, or 48% of the total, with Indonesia and Malaysia currently providing 79% of those palm oil imports.
However, Indonesia’s recent decision to raise biodiesel blending to 50% (B50) from the previous 40%, alongside Malaysia’s phased increase of its blending levels to 20%, has sparked concerns regarding future export surpluses. By forging stronger ties with Colombia, India aims to safeguard its edible oil access against the backdrop of the global energy transition.
Source: bioenergytimes.com