However, what we perceive may not be the actual truth or the whole truth and we tend to equate high prices with high quality but that is not really the case. For instance, recently, journalist Palki Sharma highlighted how Dior bags sell at $2800 while costing only $57 to make. Let me explain this with another example—palm oil, which has a massy rather than classy appeal, ironically because of its affordable pricing.
Despite the ‘miracle oil’ being used across food and non-edible products, including biofuel, it has been getting a lot of negative press, as brands and influencers clamber onto the anti-palm oil wagon. This narrative persists even as soap manufacturers such as Godrej say they cannot compromise on quality by getting rid of the oil or even Pepsi, which decided to do away with it, resorted to its palmolein blend instead.
So, if palm oil is irreplaceable, why have we painted it as the villain? Let’s start with what makes it affordable and the answer may surprise you. It is just very land-efficient, supplying between 35% and 40% of the world’s vegetable oil demand on just under 8.6% of the land used to produce all vegetable oils. Yes, you read that right; this means that other oils potentially use nine times as much farmland as palm oil.
In fact, palm oil’s perceived environmental harm is often overstated, as Hannah Ritchie from the University of Oxford's "Our World in Data" points out in ‘Not The End of the World’. Her research suggests that if all global oil demand were met with palm oil, it would require only 77 million hectares—a fraction compared to other oils. Deforestation is also an outdated narrative, as seen in the case of Malaysia, where oil palm corporations have taken positive action towards sustainable farming, with 83% of palm oil refining capacities operating under a ‘No Deforestation, Peat and Exploitation (NDPE)' commitment, leading to a sharp reduction in forest loss, as reported by Global Forest Watch in June 2023.
Interestingly, the Indian government recognises the importance of the crop, with its recently launched National Mission on Edible Oils-Oilseeds (NMEO-Oilseeds), to reduce our dependence on imports. Last fiscal year alone, India imported approximately ₹80,000 crores in edible oils, with palm oil accounting for over half. As part of this, the National Edible Oil Mission-Oil Palm (NMEO-OP) scheme focuses on expanding oil palm cultivation, offering farmers vital protections from market fluctuations and incentivising sustainable production.
Now that we have established that the oil has successfully overturned the deforestation narrative, what about when it comes to our dinner tables? For starters, all oils when consumed in moderation, can be part of a balanced diet. That said, all oils, from sunflower to soy and palm oil, come with their unique characteristics. Palm oil, which gives ice cream its silky-smooth texture, makes chips crisp and biscuits crunchy is also popular among processed food manufacturers since it remains semi-solid at room temperature.
Given its popularity, affordability and land-efficiency, it curiously remains at a lower premium when it comes to expensive counterparts, such as olive oil. Research shows that palm oil, which is considered high in saturated fat, contains a high percentage of the heart-healthy monounsaturated fatty acids, similar to olive oil. It also has a high smoking point and can be stored for longer unlike some other oils, without going rancid. These are perhaps the reasons why it is also available through the public distribution system or ration shops in parts of India.
Palm oil, contrary to perception, can also reduce cholesterol, due to its unique Vitamin E composition and abundance of tocotrienols, as mentioned in the ICMR-National Institute of Nutrition’s 2024 Dietary Guidelines for Indians. Here’s another interesting nugget: unrefined red palm oil is said to contain 15 times more retinol (provitamin A) equivalents than carrots, 300 times more than tomatoes, and 44 times more than leafy vegetables.
Clearly, when it comes to branding, the case of palm oil is a great example of the disservice poor perceptions can cause. However, it’s not too late to enjoy its many benefits, nutritional, environmental and, of course, for our pockets!
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Lloyd Mathias is an Angel Investor and an Independent Director