Tripartite MoU aims to ensure sustainable, traceable palm oil supply, strengthen smallholder inclusion, and stabilise South Asia’s edible oil markets

The Asian Palm Oil Alliance (APOA), the Council of Palm Oil Producing Countries (CPOPC) and Solidaridad Network Asia (SNAL) have signed a tripartite Memorandum of Understanding (MoU) to promote sustainability, traceability, and smallholder inclusion across the palm oil value chain. The agreement, inked in Mumbai, aims to harmonise national sustainability standards and strengthen collaboration between producers and consumers, with a particular focus on India and South Asia.

Under the MoU, the partners will work to align frameworks such as Indonesia Sustainable Palm Oil (ISPO), Malaysian Sustainable Palm Oil (MSPO) and the Indian Palm Oil Sustainability (IPOS) Framework while respecting national regulations. The initiative will support regenerative farming practices and promote NDPE-compliant (No Deforestation, No Peat, No Exploitation) sourcing, with pilot projects leveraging Solidaridad’s SoliTrace digital traceability tool and remote-sensing technologies.

A joint working Group, co-chaired by APOA and CPOPC with Solidaridad as technical secretariat, will oversee workplans, monitor progress, and coordinate advocacy efforts. Importer-facing dashboards are expected to provide Indian buyers with verification of compliance and traceability.

Leaders from the three organisations emphasised the initiative’s potential to enhance market stability, improve smallholder livelihoods, and build consumer confidence. Atul Chaturvedi, Chairman of APOA, noted, “This partnership gives producers and consumers a formal table to strengthen collaboration and foster mutual understanding in addressing shared challenges.” Dr B.V. Mehta, Executive Director of the Solvent Extractors’ Association of India, added that the initiative will deliver evidence-based information on palm oil’s nutritional value and sustainability credentials.

Izzana Salleh, Secretary General of CPOPC, highlighted the commitment to fair-trade principles and the protection of smallholder livelihoods, while Dr Shatadru Chattopadhayay, Managing Director of Solidaridad Asia, stressed the importance of practical, data-driven solutions to make sustainability meaningful for producers and buyers alike.

The partnership is designed to stabilise supply for over 1.5 billion consumers in South Asia, address price volatility and logistics challenges, and create policy coherence across international trade discussions. APOA will represent the region’s consumer markets, CPOPC will advance producer priorities, and Solidaridad will provide technical sustainability guidance, including digital traceability, smallholder support and standards alignment.