India and Indonesia have signed a memorandum of understanding (MoU) which, for the first time, recognises the Indonesian Sustainable Palm Oil (ISPO) and the Indian Palm Oil Sustainability (IPOS) frameworks as legitimate sustainability efforts.
The MoU was signed on 16 July between the Solvent Extractors Association of India (SEA), the Indonesian Palm Oil Board and supply chain development organisation Solidaridad, said Solidaridad on 17 July.
The organisation expected the cooperation agreement to lead to joint promotion of IPOS and ISPO certified sustainable palm oil in Indian, Indonesian and other markets.
Atul Chaturvedi, president of SEA and director of Adani Group, said the MoU would “lead the way for long-term sustainability of the palm oil sector” by reducing barriers and facilitating enhanced production and trade.
“This cooperation will allow for the expansion of palm oil production and trade benefiting producers, extractors and consumers in Asia without compromising on the social and environmental aspects,” said Shatadru Chattopadhaya, managing director at Solidaridad Network Asia.
The MoU signatories also said they wanted to further strengthen the cooperation between palm oil producers in the Indonesian West Kalimantan province and Indian palm oil buyers.
Indonesia is the world’s largest palm oil producer with an area of around 14.3M ha and annual production of approximately 40M tonnes, said Solidaridad.