Crude Palm Oil

Palm oil is a fatty edible vegetable oil, yellowish in color, derived from the flesh and the kernel of the fruit of the oil palm tree. The oil palm tree is a tropical, single stemmed tree having feather like leaves that gains a height of around 20 meters. The fruits of this tree, that are also the sources of the palm oil grow in bunches, are reddish in color, bigger than plums in size and have a single seeded kernel inside. The oil palm tree is native to the areas of coastal Africa and appears different from a coconut palm tree.
One hectare of oil palm yields approximately 20 FFBs, which when crushed yields 6 tons of oil (including the kernel oil, which is used both for edible and industrial purposes) Crude Palm Oil (CPO), Crude Palmolein, RBD (refined, bleached, deodorized) Palm Oil, RBD Palmolein and Crude Palm Kernel Oil (CPKO) are the various edible forms of palm oil traded in the market.
Crude Palm Oil (CPO) is one of the most important edible oil in India. Palm oil is one of the few vegetable oils known to be rather high in saturated fats, and it comes close to soybean oil as one of the most widely-produced vegetable oils in the world
Global Scenario
Together, Malaysia and Indonesia account for over 85% of world production of Crude Palm Oil, with most of that produced intended for exports.
The world production of Crude palm Oil in 2012-13 was 55 Million Tons. With a total production of 28 MMT Indonesia accounted for almost 51% of the world production followed by Malaysia with a production of 19 MMT and accounting for almost 34% of the world production.
Indian Scenario
India is the largest importer of Crude Palm Oil with an annual average imports of approximately 50 lac MT. India imports bulk of its palm oil requirement from Indonesia. Palm oil being the cheapest among the edible oil segment is widely consumed among the Indian household.
Kandla, JNPT, Chennai, Kakinada, Haldia are the major port for imports in India.
Factors influencing CPO prices
  • Oilseeds production at domestic and global level
  • The supply-demand and price scenario of competitive oils
  • The Government export-import policy
  • Import duty and tariff value in India, Indonesia and Malaysia
  • The supply-demand scenario of all oils and oilseeds in the consuming centers, viz., India, China and EU. This in turn is manifested as imports from these countries
  • The palm oil production cycle: April - December is peak production period
  • Import regulations imposed in the importing countries
  • Crude Oil Prices due to use of Palm oil in manufacturing of biodiesel