Rising Latin American Palm Oil Output to Hit Indonesia-Malaysia

04-Sep-2025 06:28 PM

Mumbai. In Latin America, palm oil production has started increasing rapidly in countries like Colombia and Guatemala and in the coming time, its export is likely to increase from there. Early signs of this have also started coming. This can cause a setback to countries like Indonesia, Malaysia and Thailand, which are the world's largest producers and exporters of palm oil.

Earlier, some countries in Latin America did not pay much attention to the sustainable and regular production of crude palm oil.

But now the situation has started changing. One special thing is that Latin American countries are offering palm oil export at a very low price because the cost is less there. As a result, many Indian importers have started importing crude palm oil (CPO) from countries like Colombia and Guatemala.

Some countries do not seem at all interested in obtaining RSPO certification for CPO or obtaining Malaysia's MSPO. According to a leading industry analyst, Latin American countries should pay special attention to this.

Because this will help in maintaining the quality and reliability of palm oil. The palm oil industry can make a significant contribution in increasing biodiversity and protecting the climate in Latin America.

In the coming years, Latin America is set to play an important role in the global export market of palm oil, due to which its shipment from the countries of South-East Asia is likely to be affected. India, the major buyer of palm oil, is importing palm oil from Latin America, while there can be a good increase in it in the future because it will be relatively cheaper.

India is among those importing countries of palm oil that do not give much importance to sustainable certification. Western countries often demand it. It is worth mentioning that Colombia and Guatemala are the fourth and sixth major producers of palm oil in the world respectively,

but till now its export from there is mainly to North America and Europe. Now India has also started importing it from there because its cost is less than Indonesia and Malaysia.