Two Companies at Forefront of Certified Sustainable Palm Oil in India
New Delhi – Kamani Oil Industries Pvt. Ltd. and Galaxy Surfactants Ltd. recently attained certification under the Roundtable on Sustainable Palm Oil (RSPO), making them the first companies in India to achieve this standard. Both companies can now supply RSPO-approved Mass Balance Certified Sustainable Palm Oil (CSPO) to their customers.
India is the world’s largest importer of palm oil, capturing over 20 percent of global supply. The move by Kamani and Galaxy to RSPO Mass Balance certification is a significant milestone in this market, reflecting similar moves by many companies in overseas markets towards more responsible business practices.
According to Prakash Chawla, owner of Kamani Oil Industries, “Obtaining our RSPO-certification underscores Kamani’s commitment towards sustainable business practices. The palm oil market in India is changing and we are keen to remain a leader, ensuring that our customers have access to the best available products”.
K. Natarajan, Chief Operating Officer of Galaxy Surfactants also sees the advantages of certification, “We have a long tradition of commitment to environmental responsibility and product innovation. RSPO certification not only helps us better serve our customers, but the environment too”.
The mass balance system allows for mixing of RSPO certified palm oil and other palm oil at any stage in the supply chain provided that overall company quantities of each are known and the volume of non certified palm oil does not exceed the volume of certified sustainable palm oil. The model allows flexibility in situations where precise traceability of certified palm oil through a segegrated supply chain may not be possible, whilst still allowing companies the ability to achieve more responsible sourcing practices.
The move was welcomed by WWF-India who has worked with local industry to promote the adoption of RSPO’s standard for palm oil in India for several years. Darrel Webber, Secretary General of RSPO, commented “We are pleased to see positive progress and strengthened commitment from our members in India. We hope their efforts will be exemplary for all other members in India, current and future, to emulate.”
He further added. “India is a critical market with a global footprint and an immense influence to drive market transformation. This is a positive first step that will encourage other key players in the industry to move towards sustainable palm oil procurement.”
About palm oil
Palm Oil is the world’s most consumed vegetable oil and is used as edible oil in processed foods like chocolate bars, ice cream, instant noodles, and margarine.
Derivatives of palm oil are also used in cosmetics, soaps, shampoos and detergents. It is also widely used as a base for biofuels.
Oil palms yield more oil per hectare of land than any other crops in the world. They are also relatively less reliant on fertilizers, pesticides and other inputs compared to other monoculture crops.
The palm oil industry is a source of considerable social benefits. There are more than one million workers, three million small holders and many more households involved in palm oil production around the world.
What is CSPO
Palm oil that has been certified to be sourced from plantations which are free from high level deforestation and ensure fair and equitable working conditions for workers is known as Certified Sustainable Palm Oil (CSPO).
These plantations also limit the use of environmentally invasive inputs like fertilizers and pesticides and implement proper water management practices, reducing the environmental footprint of the output. Other environmental criteria such as preserving peatlands and water systems are also taken into account to ensure sustainability.
In response to the urgent and pressing global call for sustainably-produced palm oil, the Roundtable on Sustainable Palm Oil (RSPO) was formed in 2004 with the objective of promoting the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders. The seat of the association is in Zurich, Switzerland, while the secretariat is currently based in Kuala Lumpur with a satellite office in Jakarta.
RSPO is a not-for-profit association that unites stakeholders from seven sectors of the palm oil industry - oil palm producers, palm oil processors or traders, consumer goods manufacturers, retailers, banks and investors, environmental or nature conservation NGOs and social or developmental NGOs - to develop and implement global standards for sustainable palm oil.
Such multi-stakeholder representation is mirrored in the governance structure of RSPO such that seats in the Executive Board and project-level Working Groups are fairly allocated to each sector. In this way, RSPO lives out the philosophy of the "roundtable" by giving equal rights to each stakeholder group to bring group-specific agendas to the roundtable, facilitating traditionally adversarial stakeholders and business competitors to work together towards a common objective and make decisions by consensus.
For further information, kindly contact:
Contact for RSPO Secretariat:
Member Relations Manager
E : firstname.lastname@example.org
Contact for India:
IPAN Hill & Knowlton Strategies