HUL (Hindustan Unilever Limited) is reducing the use of palm oil in soap by 25%, causing concern in the industry and among small farmers.

According to information obtained from ET, HUL has decided to reduce the use of palm oil and its derivatives in soap by 25%. This decision was made to mitigate the volatility of raw material prices and to address environmental issues.

This important decision could have a significant impact on the industry and contribute to sustainable development, as finding alternative uses for palm oil is a complex problem due to its price volatility and adverse environmental impact. However, the edible oils industry has expressed concerns about HUL's decision to reduce the use of palm oil.

It is known that the increase in palm oil prices is linked to rising production costs, and palm oil prices are dependent on prices of other edible oils such as soybean and sunflower. Therefore, criticism directed solely at palm oil seems unfair and inappropriate," noted Atul Chaturvedi, Chairman of APOA, representing India, Sri Lanka, Bangladesh, Nepal, and Pakistan.

Chaturvedi added: "Taking into account initiatives such as India's National Mission on Oilseeds - Oil Palm (NMEO-OP), it is essential to recognize that palm oil is a significant factor in expanding economic rights and opportunities." According to APOA, the environmental arguments presented by HUL require serious consideration. "Oil palm cultivation in terms of productivity and resource efficiency remains the best option among alternative solutions. It is interesting to note that HUL has always supported sustainability certifications such as RSPO, but reducing the use of palm oil may weaken these efforts and harm small farmers," said Chaturvedi.

In light of this, APOA has called on HUL to provide objective and scientifically substantiated evidence comparing the impact of palm oil and its alternatives on the environment on an industrial scale.