Datetime: 2025-08-19 07:25:55 Visit: 8525
The Indian Vegetable Oil Producers’ Association (IVPA) and the Indonesian Palm Oil Association (GAPKI) have signed a three-year agreement to deepen economic ties and ensure food security, Free Press Journal reported.
Signed on 24 July, the memorandum of understanding (MoU)’s aim was to strengthen collaboration in the palm oil sector, which formed the backbone of the edible oil trade between the two nations, the 25 July report said.
India imports over 60% of its edible oil requirements, with Indonesia its largest palm oil supplier for more than a decade, according to the Solvent Extractors’ Association of India (SEA).
The agreement focused on sustainable practices and stable supply chains, with five key areas of cooperation: technical exchange and research & development; sustainability initiatives; policy coordination; food security measures and market intelligence sharing, Free Press Journal wrote.
Both associations would focus on promoting certified sustainable palm oil (CSPO) while including smallholder farmers in the value chain, the report said.
“We look forward to advancing India’s food security and climate goals through a reliable, responsibly sourced palm oil supply,” GAPKI head of foreign affairs Fadhil Hasan said.
“While challenges like smallholder compliance remain, this partnership will drive innovation and inclusive policies for a resilient supply chain.”
GAPKI chairman Eddy Martono highlighted the strong bilateral trade relationship between the countries.
“In 2024, our bilateral trade reached US$26bn, including US$20.3bn in exports from Indonesia to India and US$5.7bn in imports from India, leading to a trade surplus of US$14.6bn in Indonesia’s favour,” he said.
Palm oil and its derivatives accounted for US$4.4bn of that total, Martono added.
