Palm oil……

Palm Fruit Bunches

Introduction
Palm oil is obtain from fresh fruit bunches of oil palm cultivated in plantations.
There are several Commercial variants of palm oil, viz. crude palm oil (CPO),
RBD(refined bleached deodorized) palm oil RBD palmolein & palm kernel oil.
CPO, when subjected to refining, result in other fractions.

Applications

CPO and its derivatives are mostly used as edible oil. Due to cost
competitiveness , refined Products of CPO are much preferred in
confectionery, biscuit and bakery industries.
Nutrition

Many processed foods contain palm oil as an ingredient. Palm oil is composed of
fatty acids, esterified with glycerol just like any ordinary fat. It is high in saturated
fatty acids. Palm oil gives its name to the 16-carbon saturated fatty acid palmitic acid.
monounsaturated oleic acid is also a constituent of palm oil. Unrefined palm oil is a
large natural source of tocotrienol, part of the vitamin E family.
Further information: palmitic acid
The approximate concentration of fatty acids (FAs) in palm oil is as follows:
Fatty acid content of palm oil
Type of fatty acid Percentage
Palmitic saturated C16 44.3%
Stearic saturated C18 4.6%
Myristic saturated C14 1.0%
Oleic monounsaturated C18 38.7%
Linoleic polyunsaturated C18 10.5%
Other/Unknown 0.9%
Refined, bleached, deodorized palm oil (RBD)

Palm oil products are made using milling and refining processes: first using
fractionation, with crystallization and separation processes to obtain solid (stearin),
and liquid (olein) fractions. Then by melting and degumming, impurities can be
removed, and then the oil is filtered and bleached. Next, physical refining removes
smells and coloration, to produce refined bleached deodorized palm oil, or RBDPO,
and free sheer fatty acids, which are used as an important raw material in the
manufacture of soaps, washing powder and other hygiene and personal care
products. RBDPO is the basic oil product which can be sold on the world's
commodity markets, although many companies fractionate it further into palm
olein, for cooking oil or other products.

Splitting of oils and fats by hydrolysis, or under basic conditions saponification,

yields fatty acids, with glycerin (glycerol) as a byproduct. The split-off fatty acids
are a mixture ranging from C4 to C18, depending on the type of oil/fat.
Uses

Derivatives of palmitic acid were used in combination with naphtha during

World War II to produce napalm (aluminum naphthenate and aluminum
palmitate). many processed foods contain palm oil as an ingredient.

Biodiesel

Biodiesel for internal combustion engines has been promoted as a renewable

energy source to reduce net emissions of carbon dioxide into the atmosphere.
Biodiesel is seen as a way to decrease the impact of the greenhouse effect and as a
way of diversifying energy supplies to assist national energy security plans.
Palm oil, like other vegetable oils, can be used to create biodiesel, as either a
simply processed palm oil mixed with petrodiesel, or processed through
transesterification to create a palm oil methyl ester blend, which meets the
international EN 14214 specification. Glycerin is a byproduct of
transesterification. The actual process used to produce biodiesel around the world
varies between countries and the requirements of different export markets. From
2007, all diesel sold in Malaysia must contain 5% palm oil. Malaysia is emerging
as one of the leading biofuel producers, with 91 plants approved .
Global Scenario
Major Producers of CPO (Million Tonnes)
Country 2006/07 2007/08
Indonesia 16.6 18.3
Malaysia 15.29 17.7
Thailand 1.17 1.05
Colombia 0.77 0.83
Nigeria 0.81 0.82
2.72

Others 2.69
Major Exporter of CPO (Million Tonnes)
Country 2006/07 2007/08
Malaysia 12.9 14.1
Indonesia 11.45 13.5
Papua New Guinea 0.36 0.38
Jordan 0.28 0.3
Thailand 0.23 0.3
Others 1.85 1.83
Major Importers of CPO (Million Tones)
Country 2006/07 2007/08
China 5.14 5.4
EU-27 3.64 3.75
India 3.8 4.35
Pakistan 2.21 2.42
Bangladesh 0.95 1
Others 10.88 12.04
Monthly Palm Oil Prices (Malaysian Palm Oil Board)
Currency Malaysian Ringgits ($ 1 = 3.15 MYR)
 MONTHLY EXPORT PRICES OF RBD PALM OLEIN (FOB US$/TONNE)
For 2009 & 2010

Months Peninsular Malaysia Sabah & Sarawak Malaysia

  2009 2010 2009 2010 2009 2010
January 610 792 605 780 609 787
February 601 777 597 768 600 773
March 612 814 614 812 613 813
April 744 816 738 807 743 811
May 836 811 817 799 831 807
June 741 797 737 783 740 791
July 647 795 644 786 646 791
August 737   721   728  
September 697   683   691  
October 683   663   676  
November 693   684   690  
December 765   762   764  
Average 700 801 687 791 695 797

Source - http://econ.mpob.gov.my/upk/monthly/bh_mthrbdpl_10.htm
Indian Scenario
India’s annual consumptions of edible oil is around 12 million tones, half of it met
through import and rest through domestically produced oilseeds.

 Domestic production of crude palm oil in India is hardly 60000 tons per annum.

Major ports for palm oil imports are Kandla, JNPT, Kakinada, Chennai, Mundra,
Magalore, Mumbai and Cochin.

Recently palm & Soybean oils have become major edible oil consumed in India,
accounting for 36% & 18% of total consumption, respectively.
Taxation

 In India Import duty on Palm oil is @12.03% on following tariff values

defined by Notification.
M VAT 5% on all edible oil from 1st May 2010. (In any form refined or
unrefined)
CST is @ 2% on all edible oil.

Notification No. 76/2010-CUSTOMS (N. T.)

TABLE
S.No. Chapter/ heading/ sub- Description of goods   Tariff value US
heading/tariff item   $(Per Metric
Tonne)
1 15111000   Crude Palm Oil 447
2 15119010   RBD Palm Oil 476
3 15119090   Others – Palm Oil   462
4 15111000   Crude Palmolein   481
5 15119020   RBD Palmolein   484
6 15119090   Others – Palmolein   483