New Delhi: India is looking to diversify its palm oil sources as Indonesia and Malaysia move towards higher biodiesel blending, a shift that could direct more palm oil towards fuel production and reduce its availability for food, Business Standard reported.
Colombia has emerged as a potential alternative source for India as the country seeks to strengthen its palm oil supply and protect food security.
A high-level delegation from the Solvent Extractors’ Association of India (SEA), the apex body representing oilseed processors and refiners, is expected to visit Colombia early next year to explore opportunities for palm oil sourcing, trade and cooperation, according to an official statement.
An MoU between SEA and Colombia’s National Federation of Oil Palm Growers (Fedepalma) is also expected to be signed soon. The proposed agreement is aimed at opening a new phase of cooperation between India and Colombia in the palm oil sector.
The proposed visit and MoU follow a high-level interaction between SEA and a Colombian delegation on the sidelines of the recently concluded 29th Globoil in Mumbai.
Colombia is the world’s fourth-largest producer of palm oil and the largest producer in Latin America, with annual production of nearly 2 million tonnes, according to the SEA statement.
India has traditionally imported around 200,000 tonnes of palm oil from Colombia each year on average, but there is scope to increase these purchases, the statement said.
The SEA said the initiative comes at a significant time as India has recently reduced import duties on crude edible oils, while the festive season has renewed attention on the availability and affordability of edible oils in the domestic market.
SEA President Angshu Mallick said the invitation to visit Colombia and explore areas of mutual benefit was a positive development. He said the association was planning to send a delegation early next year and looked forward to taking the engagement forward.
India, the world’s largest consumer of edible oils, imported nearly 13.61 million tonnes of edible oils during the first 10 months of the 2025-26 edible oil marketing year, from November 2025 to August 2026. This was about 4.53% higher than imports during the corresponding period of the previous year.
Palm oil accounted for around 6.53 million tonnes, or 48% of India’s total edible oil imports during the period. Indonesia and Malaysia together supplied around 5.18 million tonnes, accounting for nearly 79% of India’s palm oil imports.
Indonesia, the world’s largest palm oil producer, recently decided to increase its biodiesel blending level to 50% from the existing 40%. This could leave less palm oil available for food use.
Malaysia, the world’s second-largest palm oil producer, has also decided to increase its biodiesel blending levels from the current 10% and 15% to 15% and 20% in phases.
With both major suppliers increasing the use of palm oil for biodiesel, India is exploring other sources such as Colombia to strengthen its access to edible oils.
