Green palm oil output likely to cross 5 mn tonnes

A likely increase in Chinese demand could push global production of green palm oil to over five million tonnes this year, according to Swiss-based association RSPO.

“World production of palm oil that is produced in an environment-friendly and socially-responsible way is expected to be more than 5,000,000 tonne in 2012,” said Roundtable on Sustainable Palm Oil (RSPO) secretary general Darrel Webber.

The production is likely to improve as demand from China, — the world’s second biggest palm oil importer — for green palm oil is expected to surge, he said, without disclosing current status of China’s demand for green palm oil. In 2011, five million tonnes palm oil was produced from one million hectare, certified for adopting sustainable production practices, he added.

Currently, green palm oil comprises 11 per cent of the world’s total palm oil output of 49 million tonne. Much of green palm oil is produced in Malaysia and Indonesia, global leaders in palm oil production. RSPO is a non- profit association that represents stakeholders of palm oil industry to develop and implement global standards for sustainable palm oil.

Webber, however, said that in 2011, half of the total green palm oil was sold.

Increasing consumer awaand said increasing awareness especially in India and China could help boost environment-friendly palm oil production.

India, which imports 6.5 million tonne of palm oil annually, hardly buys green palm oil, at present. At present, Adani Wilmar, Godrej Industries, Kamani Oil Industries and VVF Ltd are members of RSPO, who have bought virtual certified sustainable palm oil. RSPO, which has membership of over 700 globally, said stakeholders can either buy sustainable palm oil in physical form or virtual certificates to support the cause to protect environment and minimise damage that could otherwise be neglected in normal palm oil plantations.