Palm oil has emerged as the main source of vegetable oils globally in the recent years. It has become the most economic crop in the global vegetable oil market and is increasingly being used for food and industrial applications. Derivatives of palm oil are also being used in cosmetics, soaps, detergents, shampoo and biodiesel. India is the largest market for palm oil in the world. The estimated global output to rise 1.5Mn Tonnes in 2016,versus a prior forecast of 2.5Mn tonnes. Therefore, India is increasingly playing an important role in the demand and consumption of palm oil. Today palm oil is the cheapest edible oil available in the Indian market. Consequently, Palm and Soya bean oils together constitute around 68% global edible oil trade volume, with soya bean oil constituting 22.85%.
The rising urban population, changes in consumption patterns and increasing income levels are major demand drivers of edible oil consumption in India.
India is the biggest buyer of vegetable oils in the world. The rising urban population, changes in consumption patterns and limited domestic production have led to India’s increasing imports of edible oils. India is increasingly playing an important role in the demand and consumption of palm oil.