COVID-19 and its effect on Palm Oil trade in India

 

Introduction

 

Trade between two nations has always been a very dynamic and is influenced by a number of factors, both international and national. A large number of bodies formed to oversee various treaties, whether environmental, fair trade practices and so forth, also influence international trade. The sudden impact of pandemic caused by Coronavirus has added another dimension to the trade compulsions of various economies and import of Palm Oil from Malaysia has also been a victim of the restrictions imposed. However, in addition to the uncontrollable restrictions caused by COVID, there have been other factors which need consideration. Restrictions imposed by COVID and absence of people coming to eateries has hit the catering industry hard and further restrictions on import of economically placed Malaysian Palm Oil will only aggravate the conditions further.

 

Vegetable Oil and Indian Cuisine

 

            Oil is an intrinsic part of Indian cuisine and is used widely in all preparations. Being a vast nation with large requirement, India can not meet its requirement from domestic production and per force has to import edible oil. It is estimated that approximately two thirds of total edible oil requirement is met ex import. This fact makes India a very lucrative market for edible oil producing nations and various practices, ethical and unethical, are employed to influence opinions in favour of their products. Traditionally, a bulk of import has been of Malaysian Palm Oil which, suitably blended, meets the Indian taste preferences. 

 

Roadblocks in import ex Malaysia

 

            Activists have created a narrative branding Malaysian Palm Oil unsuitable for India for various reasons. These issues need to be analysed in correct perspective.

 

            One section of activists feel that since Palm Oil is a mass production Oil, it favours large plantationsand adds to exploitation of small farmers, thereby promoting poverty. Nothing could be far from truth. Like all other cultivations, Palm Oil cultivation also has a healthy mix of large- and small-scale farmers engaged in farming akin to sugarcane in India. Due to its high demand, all players get a fair chance to be a part of industry as per their capacity.

 

            Environmentalists have put across a view that due to its growing demand; more and more land is being converted into Palm Oil cultivations by denuding the forest cover, thereby adding to global environment hazards. However, all nations engaged in large scale cultivation, including Malaysia and Indonesia, have been active members of  various summits and have taken visible steps in retaining the forest cover.

 

            The most common argument against import of Malaysian Palm Oil is it being unhealthy due to presence of very high percentage of Saturated Fats which adds to Cholesterol formation in human body. While it may be true to some extent that Palm Oil does have a relatively higher percentage of Saturated Fats when compared to Olive Oil or Canola Oil, it also has healthy levels of healthy unsaturated acids which balance the ill effects to a large extent. 

 

Way Ahead

 

            The compulsions of India in restricting import of Palm Oil from Malaysia are well appreciated but the factors in favour far outweigh the perceived myths that have been created. The Malaysian Palm Oil has been used in India for decades, especially for large scale cooking by the hospitality Industry which has to ensure taste preferences and economy of Indian clientele. The taste of delicacies made in Palm Oil have met the approval of Indian palate and pocket.

 

            While need to promote the domestic oils is supreme and should be safeguarded, the fact remains that production of Oil producing foods is inadequate and per force imports have to be relied upon. Other substitutes like Canola or Olive Oil, apart from being expensive, do not fulfil the two basic conditions; taste and high temperature cooking. 

 

Conclusion

 

            Hospitality and Catering Industry is an equally important component of Indian economy and needs to be preserved. Let us not fall prey to unfounded fears against Malaysian Palm Oil and create a panic. The Industry is responsible enough to safeguard the health issues of its clientele and will not indulge in any unethical practice which compromises safety of its customers. Malaysian Palm Oil is a suitable cooking medium for Indian cooking as it has been for many decades and should be seen as such.