India and Indonesia sign three-year agreement for food security through sustainable palm oil trade

The Indian Vegetable Oil Producers’ Association (IVPA) and the Indonesian Palm Oil Association (GAPKI) have signed a three-year memorandum of understanding to strengthen economic ties and ensure food security, according to Free Press Journal. Signed on July 24, the agreement aims to enhance cooperation in the palm oil sector, which forms the backbone of the edible oil trade between the two nations.

India imports over 60% of its edible oil requirements, with Indonesia being its largest palm oil supplier for more than a decade, as reported by the Solvent Extractors’ Association of India (SEA). The agreement focuses on five key areas of cooperation: technical exchange and research, sustainability initiatives, policy coordination, food security measures, and market intelligence sharing.

Both associations will promote certified sustainable palm oil (CSPO) and include smallholder farmers in the supply chain. Fadhil Hasan, head of GAPKI’s foreign affairs, stated, “We look forward to advancing India’s food security and climate goals through a reliable, responsibly sourced palm oil supply.” He noted that despite challenges like smallholder compliance, the partnership will drive innovation and inclusive policies for a resilient supply chain.

GAPKI chairman Eddy Martono highlighted the strong bilateral trade relationship between the two countries. “In 2024, our bilateral trade reached US$26 billion, including US$20.3 billion in exports from Indonesia to India and US$5.7 billion in imports from India, resulting in a trade surplus of US$14.6 billion in Indonesia’s favor,” he said. Palm oil and its derivatives accounted for US$4.4 billion of this total.

Tags: Indonesia, India, palm oil