Kochi: In May 2023, India experienced a significant decline in palm oil imports, reaching a 27-month low. If this trend continues, it may have adverse consequences for Kerala.

Kerala has been leading in the consumption of palm oil across the country. Data reveals that the monthly usage of palm oil in the state reaches 20,000 tons, accounting for approximately half of the state's overall oil consumption, including various types of oils.

Food production centres and hotels in the state rely more on palm oil.  As a result, the decline in imports may affect both the retailers and those in the food business. 

Interestingly, Kerala has been continuing its import ban on palm oil  through  seaports. It was in 2007 that the state revoked the ban. This was done to protect the interest of coconut farmers in the state and price stabilisation of coconut oil. 

However, there is no ban on the supply of palm oil through roadways. At present, oil imported through sea ports of nearby states is reaching Kerala. The new development is expected to increase allied costs. 

Meanwhile, those in the food business have been urging the government to lift the ban. However, the government has not yet intervened to find a solution. 

India is the world's largest vegetable oil buyer, and it meets 60 per cent of its requirement through imports. A large part of it is palm oil, soybean oil, sunflower oil and their derivatives. Indonesia, Malaysia, and Thailand are the countries from which India has been importing palm oil. The country has been cutting palm oil imports as related costs are high compared to other oil types.