Crude Palm oil is an edible oil derived from pulp of oil palms. It is naturally reddish in colour as it contains high amounts of beta-carotene. Its scientific name is Elaeis guineensis.
Uses of crude palm oil
Palm Oil is used for cooking and largely in South East Asia. Besides cooking purposes and food products, Palm Oil and derivatives known as fractions of the oil are used in the manufacture of pre-packaged food, cosmetics, cleaning products, hair care, soaps and personal care items. Palm Wax is used in the manufacture of candles. It is also used to manufacture bio fuel for motor vehicles, shipping and aircraft fuel and one of its by-products is glycerin.
Major producers of palm oil
Indonesia and Malaysia are the major producing and exporting nations of palm oil. 85% of the world’s crude palm oil comes from Indonesia and Malaysia. Adverse weather conditions for palm output have an effect on the prices. Wide fluctuations in the currencies of Indonesia and Malaysia also affect palm prices. During periods of dry spells or heavy rainfall resulting in flooding, palm oil production would be affected and subsequently prices as well.
India is one of the major importers of Crude Palm Oil and Mumbai is one of the major trading centers. The largest derivatives market for Crude Palm Oil is Bursa Malaysian Derivatives. It is traded in the commodity futures market on MCX and NCDEX in India.
The versatility of palm oil is perhaps the key contributor to its value, hence the growth of the palm oil cultivation industry.