“The value is around $200 million annually today. We expect this to double,” said Ashwin Selvaraj, Chief Strategy & Digital Transformation Officer at the Roundtable on Sustainable Palm Oil (RSPO), in an interview to CNBC-TV18.
The European Union Deforestation Regulation (EUDR), which comes into effect from January 2026, mandates traceability and geolocation of commodities like palm oil, coffee, and cocoa. Selvaraj said the palm oil sector is “in a better place” than many other industries when it comes to compliance readiness. “There has been a lot of awareness and work done in the palm oil sector over the years on deforestation,” he noted.
Indian companies, especially listed firms, are also increasingly aligned with environmental, social, and governance (ESG) goals. “Many listed companies are reporting under the BRSR regulations. There’s already a lot of awareness about ESG, and many are procuring certified raw materials,” Selvaraj said.
Geolocation mapping—a key requirement under EUDR—is already in place across much of India’s palm oil supply chain. “A lot of the farm plots are already mapped, and the mills that work with farmers to process the fruits already have this information,” he added.
RSPO certification currently covers around 25% of global palm oil production, and a significant chunk of that already meets the deforestation-free requirements under EUDR. Selvaraj clarified that not all palm-based products are under the EUDR scope. “Snacks and namkeen are not in scope. What is applicable is really crude palm oil, refined fractions, and some oleochemical derivatives.”
Globally, about 10 million tonnes of palm oil is traded under RSPO certification. Selvaraj believes both upstream and downstream segments are prepared. “The information is there. What needs to happen is for the downstream industry to compile and share it with competent authorities in Europe,” he said.
Watch accompanying video for entire conversation.