India, Indonesia Sign Palm Oil Pact Boosting Exports, Food Security

India and Indonesia have strengthened their strategic partnership in the palm oil sector through a landmark Memorandum of Understanding signed by the Indian Vegetable Oil Processors Association (IVPA) and the Indonesian Palm Oil Association (IPOA), focusing on growth, sustainability, and food security. This agreement aims to facilitate stable trade flows, promote climate-resilient practices, and support India's National Mission on Edible Oils–Oil Palm by expanding palm cultivation to 1 million hectares by 2025-26, with Indonesia supplying 100,000 germinated palm seeds to aid this expansion. Indonesia expects its palm oil exports to India to exceed 5 million tonnes in 2025, boosted by India's reduction of import tariffs on crude palm oil from 20% to 10%, which improves price competitiveness against other oils. The MoU encompasses technical exchanges, policy coordination, market intelligence sharing, and initiatives to promote certified sustainable palm oil and smallholder farmer inclusion, reflecting both countries' commitment to sustainable and inclusive growth. Additionally, government bodies from both countries will collaborate closely, with a bilateral working group established to oversee the implementation and ensure transparency and sustainability in the supply chain. This partnership also supports food security and decarbonization goals aligned with national missions in both India and Indonesia.