The Asian Palm Oil Alliance (APOA), the Council of Palm Oil Producing Countries (CPOPC), and Solidaridad have signed a Memorandum of Understanding (MoU) to enhance collaboration between palm oil producers and consumers, aiming to advance sustainability and stabilize supply chains across South Asia.

The agreement, signed in Mumbai, establishes a framework to align national sustainability standards, address market volatility, and promote smallholder inclusion, with a focus on India, a key market serving over 1.5 billion consumers.

“This partnership provides a platform for producers and consumers to tackle shared challenges like food security and price stability,” said Atul Chaturvedi, chairman of APOA.

The MoU commits the parties to harmonize frameworks such as Indonesia Sustainable Palm Oil (ISPO), Malaysian Sustainable Palm Oil (MSPO), and the Indian Palm Oil Sustainability (IPOS) Framework, while respecting national regulations.

It also emphasizes traceable, No Deforestation, No Peat, and No Exploitation (NDPE)-compliant sourcing, using tools like Solidaridad’s SoliTrace and remote-sensing technology for supply chain transparency.

A Joint Working Group, co-chaired by APOA and CPOPC with Solidaridad as the Technical Secretariat, will oversee implementation, monitor progress, and coordinate advocacy efforts.

Focus on Resilience and Inclusion

The initiative aims to ensure a stable supply of affordable edible oils amid price fluctuations and logistical challenges. Pilot projects will introduce digital traceability and importer-facing dashboards tailored for Indian buyers, alongside training for smallholders on regenerative farming practices.

“Indian consumers deserve clear information on palm oil’s affordability and sustainability,” said Dr. B. V. Mehta, executive director of the Solvent Extractors’ Association of India, which hosts APOA’s secretariat.

CPOPC’s Secretary General Izzana Salleh highlighted the role of fair trade and evidence-based dialogue in building market confidence, with smallholder livelihoods as a priority. Solidaridad Asia’s Managing Director, Dr. Shatadru Chattopadhayay, stressed delivering “practical sustainability” for producers and buyers.

Broader Implications

The partnership will advocate for fair recognition of national sustainability standards in global trade discussions and explore minimum sustainability criteria for Indian public procurement. By addressing policy risks and promoting climate-smart practices, the MoU seeks to enhance economic resilience and environmental stewardship across the region.

APOA represents vegetable oil associations from India, Bangladesh, Pakistan, Sri Lanka, and Nepal. CPOPC, founded by Indonesia and Malaysia, advocates for producer nations. Solidaridad provides technical expertise in traceability and smallholder support.