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Information @ a Glance


  • Palm oil is a form of edible vegetable oil obtained from the fruit of the oil palm tree.
  • Palm oil is one of the few vegetable oils relatively high in saturated fats (such as coconut oil) and thus semi-solid at room temperature.
  • The palm oil and palm kernel oil are composed of fatty acids, esterified with glycerol just like any ordinary fat.

Extraction Process

  • Palm oil is derived from the mesocarp of the oil palm fruit.
  • A new system of extraction based on a double-pressing technique has been implemented recently by several mills in Malaysia.
  • A carotenoid-rich oil can be obtained from the pressed fibre of the oil palm fruit which normally is burnt as fuel in palm oil mills.
  • Factors such as over maturity of fruits, damage to fruits while harvesting, transport, delay in processing beyond 24 hours, result in bad quality oil and economic loss.


  • Palm oil is the second most traded vegetable oil crop in the world, after soy, and over 90% of the world’s palm oil exports are produced in Malaysia and Indonesia.


  • In Asia, the two largest producers of palm oil are Malaysia, with a total of four million hectares of plantations in 2005, and Indonesia, with 5.3 million hectares in 2005.
  • The new demand for palm oil to be used as a biofuel or as biomass for electricity production is potentially massive.
  • The trend of strong growth in palm oil consumption continues in 2006/07, as food use and industrial use are forecast to increase 4.5 percent (1.2 MMT) and 8.9 percent (710,000 MT), respectively. The larger food consumption forecast is driven primarily by increased palm oil demand in China and India.

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