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59-486: One of the major goals was to reduce customs duties of all traded goods to zero by 2016. SAFTA required the developing countries in South Asia (India, Pakistan and Sri Lanka) to bring their duties down to 20 percent in the first phase of the two-year period ending in 2007. In the final five-year phase ending in 2012, the 20-percent duty was reduced to zero in a series of annual cuts. The least developed countries in

118-538: A capacity of 800,000 tons per year and produces hydrodeoxygenated NEXBTL biodiesel from palm oil imported from Malaysia and Indonesia. Significant amounts of palm oil exports to Europe are converted to biodiesel (as of early 2018: Indonesia: 40%, Malaysia 30%). In 2014, almost half of all the palm oil in Europe was burned as car and truck fuel. As of 2018, one-half of Europe's palm oil imports were used for biodiesel. Use of palm oil as biodiesel generates three times

177-767: A carcinogen). Reports of indigenous peoples and communities in Indonesia, indicate losing farmland and traditionally significant land due to palm oil industry expansion. In 2017, there were over 650 different land disputes between palm oil plantations and indigenous land owners. Indigenous communities also expressed concern over the loss of natural resources, such as wild rubber, reed, and adat forests (communal forests). Indigenous communities have made some ground when it comes to land disputes, either through protest or legal means. Other concerns when it comes to indigenous communities being impacted include lack of government oversight on palm oil plantations, political corruption, or

236-462: A cheap substitute for butter or hydrogenated vegetable oils in uses where solid fat is desirable, such as the making of pastry dough and baked goods. Palm oil is used in West African cuisine such as egusi soup and okra soup . Palm oil is sometimes used as a minor ingredient in calf milk replacer. Palm oil is pervasively used in personal care and cleaning products, and it provides

295-513: A highly sought-after commodity by British traders for use as an industrial lubricant for machinery during Britain's Industrial Revolution . Palm oil formed the basis of soap products, such as Lever Brothers ' (now Unilever ) " Sunlight " soap, and the American Palmolive brand. By around 1870, palm oil constituted the primary export of some West African countries, which often led to oppressive labor practices, as highlighted in

354-477: A lot of palm nut species, which may become an important contributor to the agriculture of the region. Although Ghana has multiple palm species, ranging from local palm nuts to other species locally called agric, it was only marketed locally and to neighboring countries. Production is now expanding as major investment funds are purchasing plantations, because Ghana is considered a major growth area for palm oil. Kenya 's domestic production of edible oils covers about

413-798: A person. The tax is sometimes referred to, formally or informally, as a death duty . A gift tax on value given from one taxable entity to another. Palm oil Palm oil is an edible vegetable oil derived from the mesocarp (reddish pulp) of the fruit of oil palms . The oil is used in food manufacturing, in beauty products, and as biofuel . Palm oil accounted for about 36% of global oils produced from oil crops in 2014. Palm oils are easier to stabilize and maintain quality of flavor and consistency in ultra-processed foods , so they are frequently favored by food manufacturers. Globally, humans consumed an average of 7.7 kg (17 lb) of palm oil per person in 2015. Demand has also increased for other uses, such as cosmetics and biofuels, encouraging

472-462: A quarter of the burned area. The widespread deforestation and other environmental destruction in Indonesia, much of which is caused by palm oil production has often been described by academics as an ecocide . Environmental groups such as Greenpeace and Friends of the Earth oppose the use of palm oil biofuels, claiming that the deforestation caused by oil palm plantations is more damaging for

531-499: A region accounts for 52.5 million metric tons (57.9 million short tons) of palm oil production, about 85% of the world total and more than 90% of global exports. Indonesia accounts for 52% of world exports. Malaysian exports total 38%. The biggest consumers of palm oil are India, the European Union, and China, with the three consuming nearly 50% of world exports. Thailand's Department of Internal Trade (DIT) usually sets

590-478: A study from the Environmental, Science and Policy, Colombia has the potential to produce sustainable palm oil without causing deforestation . In addition, palm oil and other crops provide a productive alternative for illegal crops, like coca . Ecuador aims to help palm oil producers switch to sustainable methods and achieve RSPO certification under initiatives to develop greener industries. Ghana has

649-539: A third of its annual demand, estimated at 380,000 metric tons (420,000 short tons). The rest is imported at a cost of around US$ 140 million a year, making edible oil the country's second most important import after petroleum. Since 1993 a new hybrid variety of cold-tolerant, high-yielding oil palm has been promoted by the Food and Agriculture Organization of the United Nations in western Kenya. As well as alleviating

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708-653: A threat to edible palm oil supplies. According to a 2009 study published in the Environmental Science and Policy journal, palm oil biodiesel might increase the demand for palm oil in the future, resulting in the expansion of palm oil production, and therefore an increased supply of food. One report indicated numerous allegations of human rights violations in the production of palm oil in Indonesia and Malaysia, including exposure to hazardous pesticides , child labor , rape and sexual abuse , and unsafe carrying loads. These incidents may receive no response by

767-422: Is a common cooking ingredient in the tropical belt of Africa, Southeast Asia and parts of Brazil. Its use in the commercial food industry in other parts of the world is widespread because of its lower cost and the high oxidative stability ( saturation ) of the refined product when used for frying. One source reported that humans consumed an average 17 pounds (7.7 kg) of palm oil per person in 2015. Palm oil

826-472: Is a mixture of water, crude palm oil, and fibers from the palm fruit. A minimum degree of processing is required to obtain the oil. The mixture is first passed through a filter to remove the solids, then separated by density to remove the water. Density treatment can also act as a basic form of degumming, provided that the fruit is steamed before milling to hydrolyze the gum, at a cost of also losing some triglycerides to hydrolysis. The result of basic processing

885-413: Is a source of Vitamin A and Vitamin E. Crude PO can be refined to remove its non-triglyceride components. RBD PO is also known as white palm oil . It can be further fractionated using the different melting points of its components. The part with a higher melting point, which crystalizes out as a solid earlier, is called palm stearin . It consists of mostly saturated fats. The remaining liquid part

944-477: Is applied to wounds for its supposed antimicrobial effects, research does not confirm its effectiveness. In 2023–2024, world production of palm oil was 77.3 million tonnes , led by Indonesia with 57% of the total. The annual production of palm oil is projected to reach 240 million tonnes by 2050. During the 2022 food crises instigated by the Russian invasion of Ukraine and crop failures in other parts of

1003-495: Is called palm olein . It is also possible to fractionate at a different point of processing, even with crude palm oil. RBD PO, or "palm shortening ", is extensively used in food manufacture. It is valued for its low polyunsaturated fat content, which offers high stability against rancidity and allows it to replace hydrogenated fats in a variety of baked and fried products. The highly saturated nature of palm oil renders it solid at room temperature in temperate regions, making it

1062-460: Is called a "crude palm oil" or a " red palm oil ", referring to its intense color due to the high carotenoid content. Red palm oil is a traditional cooking oil in West Africa. The free fatty acids within provide a "bite" to the flavor. The triglyceride part is around 50% saturated fat —considerably less than palm kernel oil —and 40% monounsaturated fat and 10% polyunsaturated fat . It

1121-596: Is created through a process called transesterification . Palm oil biodiesel is often blended with other fuels to create palm oil biodiesel blends. Palm oil biodiesel meets the European EN 14214 standard for biodiesels. Hydrodeoxygenated biodiesel is produced by direct hydrogenolysis of the fat into alkanes and propane. The world's largest palm oil biodiesel plant is the €550 million Finnish-operated Neste Oil biodiesel plant in Singapore , which opened in 2011 with

1180-402: Is much more efficient than other oils in terms of land and water usage; however, deforestation causes more biodiversity loss than switching to other oils. The biggest global producers of palm oil are Indonesia, who produced 60% of it in 2022, followed by Malaysia, Thailand, and Nigeria. Indonesia produces biodiesel primarily from palm oil. Humans used oil palms as far back as 5,000 years. In

1239-682: Is not red), and in saturated fat content: palm mesocarp oil is 49% saturated, while palm kernel oil and coconut oil are 81% and 86% saturated fats, respectively. However, crude red palm oil that has been refined, neutralized, bleached and deodorized, a common commodity called RBD (refined, bleached, and deodorized) palm oil, does not contain carotenoids. Many industrial food applications of palm oil use fractionated components of palm oil (often listed as "modified palm oil") whose saturation levels can reach 90%; these "modified" palm oils can become highly saturated, but are not necessarily hydrogenated . The oil palm produces bunches containing many fruits with

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1298-487: Is often associated with customs , in which context they are also known as tariffs or dues . The term is often used to describe a tax on certain items purchased abroad. A duty is levied on specific commodities , financial transactions , estates , etc. rather than being a direct imposition on individuals or corporations such income or property taxes . Examples include customs duty , excise duty, stamp duty , estate duty , and gift duty . A customs duty or due

1357-430: Is produced when processing oil palm, including oil palm shells and oil palm fruit bunches, can also be used to produce energy. This waste material can be converted into pellets that can be used as a biofuel. Additionally, palm oil that has been used to fry foods can be converted into methyl esters for biodiesel. The used cooking oil is chemically treated to create a biodiesel similar to petroleum diesel. Although palm oil

1416-588: Is still produced by women for domestic use. The FAO additionally states that peasants in Benin practice agroecology . They harvest palm fruit from small farms and the palm oil is mostly used for local consumption. Cameroon had a production project underway initiated by Herakles Farms in the United States. However, the project was halted under the pressure of civil society organizations in Cameroon. Before

1475-415: Is the indirect tax levied on the import or export of goods in international trade. In economics a duty is also a kind of consumption tax . A duty levied on goods being imported is referred to as an 'import duty', and one levied on exports an 'export duty'. An estate duty (in the U.S. inheritance tax ) is a tax levied on the estate of a deceased person in many jurisdictions or on the inheritance of

1534-503: Is the world's second largest producer of palm oil, producing 19.7 million tonnes in 2023-24. In 1992, in response to concerns about deforestation , the Government of Malaysia pledged to limit the expansion of palm oil plantations by retaining a minimum of half the nation's land as forest cover . As of 2023-24, Nigeria was the fifth-largest producer, with 1.5 million tonnes. Both small- and large-scale producers participate in

1593-461: Is traditionally, and still industrially, produced by milling the fruits of oil palm. Besides milling, palm oil is produced by cold-pressing the fruit of the oil palm since the 1990s. This type of artisanal palm oil is usually not further refined, so they keep the natural red color. It is bottled for use as a cooking oil , in addition to other uses such as being blended into mayonnaise and vegetable oil . The result of milling or cold-pressing

1652-691: The 12th SAARC summit . The SAFTA agreement came into force on 1 January 2006, and is operational following the ratification of the agreement by the eight governments. The basic principles underlying the SAFTA are as follows: In 2011, Afghanistan joined the SAFTA. The purpose of the SAFTA is to encourage and elevate common contract among the countries such as medium and long-term contracts. Contracts involving trade operated by states, supply and import assurance in respect of specific products etc. It involves agreement on tariff concession like national duties concession and non-tariff concession. The main objective of

1711-468: The Indochinese tiger . Forests have been cleared in parts of Indonesia and Malaysia to make space for oil-palm monoculture . This has significant impacts on the local ecosystems leading to deforestation and biodiversity loss . For example, these processes have resulted in significant acreage losses of the natural habitat of the three surviving species of orangutan . One species in particular,

1770-932: The Sumatran orangutan , has been listed as critically endangered because of habitat loss due to palm oil cultivation. In addition to environmental concerns, palm oil development in regions that produce it has also led to significant social conflict . Regions with fast growing palm oil production have experienced significant violations of indigenous land rights, influxes of illegal immigrant labor and labor practices, and other alleged related human rights violations. The palm oil industry has had both positive and negative impacts on workers, indigenous peoples and residents of palm oil producing communities. Palm oil production provides employment opportunities, and has been shown to improve infrastructure , social services and reduce poverty. However, in some cases, oil palm plantations have developed lands without consultation or compensation of

1829-635: The negative list . Traders use the SAFTA to reroute palm oil through Nepal into India. The Solvent Extractors’ Association of India (SEA), the apex body of the vegetable oil trade, has called upon the government to look for ways to end indirect sourcing of palm oil and soyoil from Nepal under cover of the South Asian Free Trade Agreement (SAFTA). This indirect route helps Malaysia reroute palm oil through Nepal to offset Indian government's move to stop imports of Malaysian palm oil after Prime Minister Mahathir Mohamad's stand against

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1888-598: The Least Developed Countries (LDCs) among the SAARC nations. to establish a framework for further regional cooperation. SAARC also maintain free trade agreement among member nations. The following are the instruments involved in the SAFTA: According to the trade liberalisation programme, contracting countries must follow the tariff reduction schedule. There should be a fall to 20% tariff from

1947-594: The SAARC, held in Colombo in December 1993. The agreement was signed in 2004 and came into effect on 1 January 2006, with the desire of the member states of the SAARC (Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka) to promote and sustain mutual trade and economic cooperation within the SAARC region through the exchange of concessions. The agreement was reached on 6 January 2004, at

2006-416: The abrogation of special status to Kashmir. Palm oil accounts for nearly two-thirds of India's total edible oil imports. India buys palm oil from Indonesia and Malaysia, while soyoil is imported mainly from Argentina and Brazil. The country sources sunflower oil from Ukraine. Duty (economics) In economics , a duty is a target-specific form of tax levied by a state or other political entity. It

2065-487: The account of Abina Mansah's life. However, this was overtaken by cocoa in the 1880s with the introduction of colonial European cocoa plantations. Palm oil is naturally reddish in color because of a high beta-carotene content. It is not to be confused with palm kernel oil derived from the kernel of the same fruit or coconut oil derived from the kernel of the coconut palm ( Cocos nucifera ). The differences are in color (raw palm kernel oil lacks carotenoids and

2124-410: The agreement is to promote competition in the area and to provide equitable benefits to the countries involved. It aims to benefit the people of the countries by bringing transparency and integrity among the nations. The SAFTA was also formed in order to increase the level of trade and economic cooperation among the SAARC nations by reducing the tariff and barriers and also to provide special preference to

2183-687: The carbon emissions as using fossil fuel, and, for example, "biodiesel made from Indonesian palm oil makes the global carbon problem worse, not better." There are pressures for increased oil palm production from Indonesian palm-based biodiesel programs. The biodiesel currently contains a 30:70 palm oil to conventional diesel ratio (known as B30) at the gas pumps. The Indonesian government is aiming to produce 100% palm oil biodiesel (or B100) to transition out of using conventional diesel. The Indonesian government has estimated it would need to establish approximately 15 million hectares of oil palm plantations to meet these future demands. The organic waste matter that

2242-529: The company or police, or are left unreported because victims fear retaliation from their abuser. Pesticides used by palm oil plantations include paraquat , which has been banned in Europe over links to Parkinson's disease , and glyphosate , which has been involved in a US class-action lawsuit regarding cancer (the European Chemicals Agency (ECHA) classified glyphosate as causing serious eye damage but did not find evidence implicating it as

2301-542: The country's deficit of edible oils while providing an important cash crop, it is claimed to have environmental benefits in the region, because it does not compete against food crops or native vegetation and it provides stabilisation for the soil. Palm oil was introduced to British Burma (now Myanmar) in the 1920s. Beginning in the 1970s, smaller-scale palm oil plantations were developed in Tanintharyi Region , and Mon , Kayin , and Rakhine States . In 1999,

2360-523: The economic benefits, Non-governmental organisations (NGOs), such as Nature Tropicale , claim biofuels will compete with domestic food production in some existing prime agricultural sites. Other areas comprise peat land , whose drainage would have a deleterious environmental impact . They are also concerned genetically modified plants will be introduced into the region, jeopardizing the current premium paid for their non-GM crops. According to recent article by National Geographic , most palm oil in Benin

2419-582: The existing tariff by the non-Least Developing Countries and 30% reduction from the existing tariff by the Least Developing Countries. But trade liberalisation scheme is not to be applied for the sensitive list because this list is to be negotiated among the contracting countries and then to be traded. Sensitive list will involve common agreement among the contracting countries favouring the least developed contracting countries. The SAFTA Ministerial Council (SMC) will be participating to review

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2478-414: The fleshy mesocarp enclosing a kernel that is covered by a very hard shell. The FAO considers palm oil (coming from the pulp) and palm kernels to be primary products. The oil extraction rate from a bunch varies from 17 to 27% for palm oil, and from 4 to 10% for palm kernels. Along with coconut oil, palm oil is one of the few highly saturated vegetable fats and is semisolid at room temperature. Palm oil

2537-420: The foaming agent in nearly every soap, shampoo, or detergent. Around 70% of personal care products including soap, shampoo, makeup, and lotion, contain ingredients derived from palm oil. However, there are more than 200 different names for these palm oil ingredients and only 10% of them include the word "palm". Palm oil is used to produce both methyl ester and hydrodeoxygenated biodiesel . Palm oil methyl ester

2596-543: The growth of palm oil plantations in tropical countries. The use of palm oil has attracted the concern of environmental and human right groups . The palm oil industry is a significant contributor to deforestation in the tropics where palms are grown and has been cited as a factor in social problems due to allegations of human rights violations among growers. In 2018, a report by the International Union for Conservation of Nature acknowledged that palm oil

2655-804: The indigenous people inhabiting the land, resulting in social conflict. The use of illegal immigrants in Malaysia has also raised concerns about working conditions within the palm oil industry. Some social initiatives use palm oil cultivation as part of poverty alleviation strategies. Examples include the UN Food and Agriculture Organisation's hybrid oil palm project in Western Kenya, which improves incomes and diets of local populations, and Malaysia's Federal Land Development Authority and Federal Land Consolidation and Rehabilitation Authority, which both support rural development. The use of palm oil in

2714-719: The industry. In much of the Niger Delta , palm oil is commonoly referred to as "red oil" (or red gold) to distinguish it from the "black oil" ( crude oil ) which dominates production. Thailand is the world's third largest producer of crude palm oil, producing 3.6 million tonnes in 2023-24. Nearly all of Thai production is consumed locally. Almost 85% of palm plantations and extraction mills are in south Thailand. At year-end 2016, 4.7 to 5.8 million rai (750,000 to 930,000 hectares; 1,900,000 to 2,300,000 acres) were planted in oil palms, employing 300,000 farmers, mostly on small landholdings of 20 rai (3.2 hectares; 7.9 acres). ASEAN as

2773-431: The lacking of enforcement on laws meant to protect indigenous lands. In countries such as Guatemala, palm oil plantations have significant leverage within the local justice system, leading local police to disregard land claims, going as far as using force to break up protests, and even murdering local leaders. While only 5% of the world's vegetable oil farmland is used for palm plantations, palm cultivation produces 38% of

2832-461: The late 1800s, archaeologists discovered a substance that they concluded was originally palm oil in a tomb at Abydos dating back to 3,000 BCE. Palm oil from Elaeis guineensis has long been recognized in West and Central African countries, used widely as a cooking oil . European merchants trading with West Africa occasionally purchased palm oil for use as a cooking oil in Europe. Palm oil became

2891-438: The natural environment, including deforestation , loss of natural habitats, and greenhouse gas emissions which have threatened critically endangered species , such as the orangutan and Sumatran tiger . Slash-and-burn techniques are still used to create new plantations across palm oil producing countries. From January to September 2019, 857,000 hectares of land was burned in Indonesia; peatlands accounted for more than

2950-935: The non-LDCs. India has 25 items on the sensitive list for the LDCs and 695 for the non-LDCs. Manmohan Singh , then Indian Prime Minister, announced in September in Dhaka that he will reduce the Sensitive List by 46. Bhutan has 150 items for both the LDCs and non-LDCs and has no plan of shortening its list. Nepal has 1,257 for the LDCs and 1,295 for the non-LDCs. Nepal has reduced its list by 259 from its previous list of 1295. Now it's 1036, said joint secretary at Ministry of Commerce and Supplies. The Maldives has 681 for all seven SAFTA nations. Pakistan had 1,169 in its sensitive list but has cut its sensitive list by 20% to 936. Sri Lanka has 1,042 and Afghanistan has 1,072 items on

3009-575: The price of crude palm oil and refined palm oil Thai farmers have a relatively low yield compared to those in Malaysia and Indonesia. Thai palm oil crops yield 4–17% oil compared to around 20% in competing countries. In addition, Indonesian and Malaysian oil palm plantations are 10 times the size of Thai plantations. Palm is native to the wetlands of western Africa, and south Benin already hosts many palm plantations. Its 'Agricultural Revival Programme' has identified many thousands of hectares of land as suitable for new oil palm export plantations. In spite of

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3068-486: The production of biodiesel has led to concerns that the need for fuel is being placed ahead of the need for food, leading to malnutrition in developing nations. This is known as the food versus fuel debate. According to a 2008 report published in the Renewable and Sustainable Energy Reviews , palm oil was determined to be a sustainable source of both food and biofuel, and the production of palm oil biodiesel does not pose

3127-614: The project was halted, Herakles left the Roundtable on Sustainable Palm Oil early in negotiations. The project has been controversial due to opposition from villagers and the location of the project in a sensitive region for biodiversity. In 2018, total palm oil production in Colombia reached 1.6 million metric tons (1.8 million short tons), representing some 8% of national agricultural GDP and benefiting mainly smallholders (65% of Colombia's palm oil sector). According to

3186-466: The region had an additional three years to reduce tariffs to zero. India and Pakistan ratified the treaty in 2009, whereas Afghanistan, as the eighth member state of the SAARC , ratified the SAFTA protocol on 4 May 2011. The establishment of an Inter-Governmental Group (IGG) to formulate an agreement to establish a South Asian Preferential Trade Arrangement (SAPTA) by 1997 was approved at the sixth summit of

3245-663: The ruling military junta, the State Peace and Development Council , initiated the large-scale development of such plantations, especially in Tanintharyi, the southernmost region of Myanmar. As of 2019, over 401,814 ha of palm oil concessions have been awarded to 44 companies. 60% of the awarded concessions consist of forests and native vegetation, and some concessions overlap with national parks, including Tanintharyi and Lenya National Parks , which have seen deforestation and threaten conservation efforts for endemic species like

3304-492: The sensitive list in every four years with a view of reducing the list. A sensitive list is a list with every country which does not include tariff concession. Bangladesh has 1,233 products on the sensitive list for the Least Developing countries and 1,241 for the non-Least developing countries under the SAFTA. Bangladesh will reduce the sensitive list by 246 items for the least developed countries (LDCs) and 248 for

3363-534: The world due to extreme weather caused by climate change , the Indonesian government banned exports of palm oil. This combined with a reduced harvest in Malaysia greatly increased global prices, while reducing availability causing ripple effects in the global supply chain. On 23 May 2022, the Indonesian government reopened trading hoping to balance supplies. Indonesia is the world's largest producer of palm oil, producing 44 million tonnes in 2023-24. Malaysia

3422-438: The world's total vegetable oil supply. In terms of oil yield, a palm plantation is 10 times more productive than soybean , sunflower or rapeseed cultivation because the palm fruit and kernel both provide usable oil. Palm oil has garnered criticism from environmentalists due to the environmental importance of where it is grown. However, it is indisputably more efficient in comparison to other oil-producing plants. In 2016, it

3481-526: Was found that palm oil farms produce around 4.17 metric tons of oil per hectare. By contrast other oils, such as sunflower, soybean, or peanut only produce 0.56, 0.39, and 0.16 metric tons respectively per hectare. Palm oil is the most sustainable vegetable oil in terms of yield, requiring one-ninth of land used by other vegetable oil crops. In the future, laboratory-grown microbes might achieve higher yields per unit of land at comparable prices. However, palm oil cultivation has been criticized for its impact on

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