The Hindu Business Line : Now, palm oil under attack on ecology grounds

The anti-palm oil campaign of the mid-1980s that was widely believed to have been mounted by the American soyabean lobby may be now be returning in a new form, but with the same vengeance.

This time, however, the issue is not the health characteristics of palm oil per se, but health of the environment in which palm oil is produced.

In the past, palm oil had been branded as `unhealthy tropical oil' and consumers were advised against its use. However, the oil not only survived the attack, but also has flourished.

A report titled "Cruel oil - how palm oil harms health, rainforest and wildlife" published by Washington-based Centre for Science in the Public Interest (CSPI) - a non-profit health-advocacy organisation - claims that palm oil production is injurious to environment as it promotes destruction of the rainforest, especially in Malaysia and Indonesia.

Close to 90 per cent of the global palm oil production is accounted for by the two Asian countries where oil palm cultivation takes place in approximately 7 million hectares of land. According to CSPI, expansion of oil palm cultivation into land that once was rainforest and peat-swamp forests means that habitat for endangered animals is destroyed.

According to the report, ecological impact of oil palm is rather serious.

Animals such as Sumatran tiger, Bornean and Sumatran orangutans, Asian elephant and Sumatran rhinoceros are endangered and face the risk of extinction.

Castigating the health properties of palm oil, the report goes on to state, "Biomedical research indicates that palm oil, which is high in saturated fat and low in polyunsaturated fat, promotes heart disease. Though less harmful than partially hydrogenated vegetable oil, it is far more conducive to heart diseases than such heart-protective liquid oils as olive, soya and canola." World Health Organisation and others have urged reduced consumption of oils like palm oil, the report added.

Unprovoked firing: Many in the vegetable oil market see the CSPI report as attempt to stifle the growth of palm oil in the wake of rapid expansion of production, exports and market share.

In recent years, palm oil has rapidly caught up with soyabean oil, and is now threatening to overtake the latter in terms of both production and exports. Palm oil is priced cheaper than soyabean oil although soyabean cultivation is known to be heavily subsidised the US, the world's largest producer.

Ironically, the US itself has started to import large quantities of palm oil. Recent data suggest monthly import volume registered 80,000 tons. Apart from lower price of palm oil - cheaper than soyabean oil by $80-100 per ton - one major reason for renewed commercial interest in palm oil in the US is the trans-fat labelling regulation as a result of which many food manufacturers are seeking alternatives to partially hydrogenated oils.

Palm oil emerged stronger after the campaign against it several years ago.

The Malaysian government together with industry and research organisations worked hard to disabuse the minds of consumers around the world through scientific studies on the health aspects of palm oil consumption.

It is perhaps time for the palm oil industry to rebut the environment related assault. Describing the report as the commencement of a new round of trade war between two major oils, an active player in the market said that someone like Dr Lim Keng Yaik, the former Malaysian Minister for Primary Industries, known for his aggressive opposition to American brand of retaliation may be required to take the fight to the enemy's camp.

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