India, Indonesia sign strategic agreement on palm oil for growth and sustainable development

The MoU formalizes this long-standing relationship, bringing together industry expertise and policy priorities to ensure stable trade flows.

The Indian Vegetable Oil Processors Association (IVPA) and the Indonesian Palm Oil Association (IPOA) signed a landmark Memorandum of Understanding (MoU) at the IVPA conference in New Delhi. The agreement opens a new chapter of cooperation in the palm oil sector – a key commodity for both countries – based on growth, sustainability and food security.

The MoU formalizes this long-standing relationship, bringing together industry expertise and policy priorities to ensure stable trade flows, promote climate resilient practices and ensure access to affordable edible oil for millions of Indian households.

“Today’s MoU demonstrates our shared commitment to building a future-ready, transparent palm oil supply chain that benefits both consumers and producers. This partnership reaffirms the trust between our countries and underlines our shared vision for sustainable development and prosperity,” said Sudhakar Desai, President of IVPA.

The three-year agreement outlines specific areas of cooperation:

1. Technical Exchange and R&D: Joint research, technology transfer, and sharing of best practices to improve productivity while minimizing environmental impact.

2. Sustainability Roadmap: Initiatives to promote certified sustainable palm oil, strengthen traceability, and engage smallholder farmers.

3. Policy and Advocacy: Coordinated efforts to simplify regulations, support fair trade, and stabilize pricing mechanisms.

4. Food Security Measures: Joint planning to mitigate supply chain risks and support India’s national edible oil missions.

5. Market Intelligence: Sharing real-time trade, production and price data to support policy and industry decisions.

“This agreement reflects Indonesia’s commitment to jointly achieving sustainable and inclusive growth with India,” said Dr. M. Fadhil Hasan, Head of Foreign Affairs, IPOA. “We look forward to India achieving its food security and climate change goals through a secure supply of responsibly sourced palm oil.”

At the conference, Dr. Hasan added, “Palm oil is vital to Indonesia’s economy and through ISPO certification, forest conservation measures and responsible production, we aim to support India’s food security and climate goals. While challenges remain, such as compliance by smallholder farmers, this partnership will promote innovation and inclusive policies to ensure supply chain sustainability.”

Eddy Martono, Chairman of IPOA, said: “The MoU between GAPKI and IVPA reflects our commitment to deeper cooperation and sustainable development in the vegetable oil sector. Indonesia and India enjoy a strong trade relationship, with our bilateral trade reaching US$26 billion in 2024, 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 favour. Palm oil and its derivatives alone accounted for US$4.4 billion, highlighting its key role in our economic ties.”

Tags: India, palm oil, Indonesia