Indonesia-India Working Group Discuss Implementation of Sustainable Palm Oil
INDONESIAN Palm Oil Board (IPOB), The Solvent Extractors’ Association of India (SEA) and Solidaridad Network Asia Limited (SNAL) held a joint working group meeting to discuss palm oil trade cooperation. The meeting, held at JW Mariott Hotel Medan, Indonesia, Tuesday (26/3/2019), was aimed to elaborate challenges in palm oil trade as well as to recognize sustainable palm oil practices in Indonesia. The meeting discussed several key topics: Campaign to promote and create awareness on good properties of palm oil to Indian consumers as well as to counter negative publicity to tarnish the image of palm oil in the world. Issues related to harmonization of tariff. Developing the concept of celebrating International Palm Oil Day. India has become a big producer and exporter of sugar.
INDONESIAN Palm Oil Board (IPOB), The Solvent Extractors’ Association of India (SEA) and Solidaridad Network Asia Limited (SNAL) held a joint working group meeting to discuss palm oil trade cooperation. The meeting, held at JW Mariott Hotel Medan, Indonesia, Tuesday (26/3/2019), was aimed to elaborate challenges in palm oil trade as well as to recognize sustainable palm oil practices in Indonesia. The meeting discussed several key topics:
- Campaign to promote and create awareness on good properties of palm oil to Indian consumers as well as to counter negative publicity to tarnish the image of palm oil in the world.
- Issues related to harmonization of tariff.
- Developing the concept of celebrating International Palm Oil Day.
- India has become a big producer and exporter of sugar. It is understood negotiation for allowing Indian sugar to be imported to Indonesia have been in progress. It may help in bilateral trade negotiation to promote palm oil export to India if the request is acceded to.
- It was suggested that export of palm oil can be boosted to India if the Indonesian export tax on CPO is rationalized. It has been observed that palm oil import into India in the last 3-5 years has remained stagnant and all incremental growth has been cornered by soft oils like soya and sun flower oils.
- It was also suggested that export of ISPO certified palm oil should get some financial incentives to encourage its growth and acceptance. Once this is notified from Indonesia’s side, Indian government may also be approached for reducing import duty on sustainable palm oil, to encourage its import.
- The joint working group also expressed their serious concern on singling out palm oil among all other oils on sustainability issues.
Director of Fund Disbursement of the Indonesia Oil Palm Plantation Fund Management Agency (BPDPKS) Edi Wibowo said BPDPKS stands ready to support palm oil promotion in India. “BPDPKS has allocated two percent of its fund for promotion and advocacy,” he said. Delegates from India have also set out plans to visit oil palm plantation to broadened knowledge on Indonesia Sustainable Palm Oil (ISPO) system. ISPO is expected to be in tune with Indian Plam Oil Sustainability Framework (IPOS). The working group fully supports smallholders to implement ISPO. The Joint Working Group is an implementation of action of MoU between SEA, IPOB, and SNAL. The MoU, signed in Jakarta on 16 July 2018, recognizes sustainability framework of palm oil production and trade between Indonesia and India. It was for the first time recognizes the ISPO and IPOS Framework as legitimate sustainability frameworks for palm oil production and trade between Indonesia and India. Traditionally, India is Indonesia’s main market for palm oil products. In 2018, Indonesian palm oil shipment to India reached 6.71 million tons. ***
