19/11/2025 (GAPKI), Nusa Dua, Bali - The palm oil industry is now reaching  a critical point in dealing with the global regulatory pressures and negative perception on palm oil. It was stated by Adjunct Professor Pietro Paganini from John Cabot University, Rome, during a panel discussion on the second day of the 21st IPOC 2025 on Friday (14/11/2025) at BICC The Westin Resort Nusa Dua, Bali.

In his presentation titled “EUDR and Beyond: Navigating New Frontiers for Palm Oil”, Paganini said that the biggest challenge facing the palm oil industry now is not productivity, but the problem of negative perception and trust. “Oil palm is the most productive and inclusive among all vegetable oils, but it has the worst reputation,” Paganini said.

According to him, the gap between facts and perceptions had made the palm oil often victimized as scapegoat, although the commodity plays a big role in eradicating poverty, fulfilling global need for nutrition, and efficiency in land use.

Regarding the implementation of EU Deforestation-free Regulation (EUDR), Paganini said the regulation stands as the beginning of new wave of global market standard.

He said that instead of seeing the EUDR merely as an obstacle, the palm oil industries should take it as new arena of competition to establish trust and added values.

“Zero deforestation and full traceability will become new standard of the global market. EUDR opens a global race to develop trust and innovations,” he asserted.

He appreciated the application of trial period of 24 months, a transition period of one year for small and medium enterprises and smallholders, and the establishment of practical communities and steering committees as a form of realistic compromise to ensure a more inclusive implementation.

Paganini said that technology should not be seen as cost burden, but as a strategic investment for competitiveness. “Technology is a new frontier for competitiveness and trust,” he said.

He mentioned the use of drone and satellite for monitoring and compliance, blockchain for transparency and traceability, and artifical intelligence (AI) for improving efficiency.

According to Paganini, increasing productivity through replanting, agronomical innovations, and digitalization of landsites have become the main pillars of sustainability. “The highest the harvest, the lowest the pressures on lands. This is the real sustainability,” he said.

He said that the direction of industrial development should shift from land expansion to smart growth based on innovations.

Countering Negative Narratives With Education

Paganini highlighted the policy of anti-SAFA (Saturated Fat) and rampant claims of “palm oil-free”, which he sees as misleading the consumers and could not resolve the problem of nutrition substantially.

“The claim of ‘palm oil-free’ is only a marketing shortcut. It only attacks one ingredient , not the real problem,” he said.

He also underlined the importance of communication based on data, more comprehensive nutrition literacy, and systematic efforts to clear up public misunderstandings.

At the end of his presentation, Paganini calls on producing countries and the palm oil industries to no longer take reactive stance, but leading role in global diplomacy of sustainability.

He emphasized the importance of developing new narratives that palm oil is not just commodity, but the agent of development, public welfare and innovations.

Production and Indian market

Meanwhile, the Asian Palm Oil Alliance (APOA) Chairman Atul Chaturvedi said India is now at critical phase in fulfilling its national needs of vegetable oils.

As its national consumption has been continually rising and highly dependent on imports, India is seen necessary to take strategic steps to increase national production, while strengthening cooperation with producing countries

“India is the world’s biggest market of vegetable oils, but at the same time the most vulnerable country due to its dependence on imports at around 60 percent. This is a big challenge that cannot be resolved only with tariff policy, but should be through efforts of increasing domestic production and stronger regional partnerships,” Atul Chaturvedi said.

Chaturvedi said that India’s demand for vegetable oils is projected to increase significantly along with its economic growth and population growth. India has now become the world’s fifth largest economy and is projected to reach the third largest in 2030.

India’s demand accounts for 11 percent of the global total demand for vegetable oils. Its national consumption reached around 26.5 million tons, with the palm oil accounting for 37 percent. India’s imports of palm oil reached 8.25 million tons, or 50 percent of total imports of vegetable oils.

In 2047, its consumption of vegetable oils is predicted to reach 50 million tons, with palm oil consumption potentially rising to 19 million tons. “The question is simple but crucial: Where such amount of palm supply can be obtained from?,” Chaturvedi asked.

India has been several times trying to adjust its import tariffs to control consumers’ price and maintain the margins of farmers. But Chaturvedi sees the tariff strategy as not a long term solution.

“High tariff is like snake eating its own tail. Instead of restraining foreign countries’ exports, those who are burdened are the domestic consumers. Price increase, declining power of purchase, and industries would be harmed,” he said. (*)

https://gapki.id/en/news/2025/11/19/palm-oils-biggest-challenge-negative-perception-and-trust/