IFBA calls ‘No Palm Oil’ labels misleading marketing tactic

As India consumes 9 million tonnes of palm oil annually, the rise of “palm oil free” labels sparks debate over health claims and wider socio-economic impact

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New Delhi: The Indian Food and Beverage Association (IFBA) has expressed concern over the rising use of “No Palm Oil” labels across consumer products, calling the trend a misleading tactic rooted more in marketing than nutritional science. While palm oil has been widely used in India since the 19th century, it continues to be portrayed negatively due to selective branding and influencer-driven narratives.

The IFBA warns that such labels are increasingly influencing consumer perception without a scientific basis, especially in the fast-moving consumer goods (FMCG) space. According to the association, these claims distort the role palm oil plays in balanced diets and overlook its long shelf life, stability, and affordability. With India consuming 26 million tonnes of edible oil annually, of which palm oil comprises 9 million tonnes, the use of “palm oil free” labels has prompted debate over whether these are truly health-led decisions or strategies with broader socio-economic consequences.

Deepak Jolly, Chairperson of the IFBA, said, “Palm oil has a recognised role in a healthy and balanced diet. Despite this, labels such as ‘No Palm Oil’ mislead consumers by prioritising marketing over science. These narratives distract the importance of overall nutritional balance and can undermine India’s efforts toward self-reliance, ultimately harming all stakeholders, from farmers and producers to consumers and the national economy.”

The association underlined that in today’s digital environment, dietary preferences are often shaped by social media content rather than expert guidance. In particular, it cautioned against accepting health advice from influencers lacking nutritional credentials.

Shilpa Agrawal, Director, Scientific and Regulatory Affairs, IFBA, added, “The Dietary Guidelines for Indians, 2024 of the ICMR-National Institute of Nutrition clearly acknowledge the role of tocotrienols in palm oil in lowering cholesterol and supporting heart health. It recommends a rotation of edible oils, including palm oil, for a balanced fatty acid profile. This is science, not speculation.”

Palm oil is noted for having a balanced fatty acid profile, zero trans fats, and naturally occurring antioxidants, including vitamin E compounds. It has been associated with potential benefits for neurological, cardiovascular, and immune health, as well as vitamin A absorption.

The IFBA also addressed sustainability concerns by noting that palm oil production practices are evolving globally, with countries such as Malaysia and Indonesia improving yields while reducing environmental impact. In India, the government is taking active steps to enhance domestic production. Launched in 2021, the National Mission on Edible Oils – Oil Palm (NMEO-OP) carries an outlay of RS 11,040 crore to support cultivation expansion. Combined with the National Mission on Edible Oils, Oilseeds, the government targets 25.45 million tonnes of domestic edible oil production by 2030–31.

In regions like Telangana, palm cultivation is already demonstrating financial benefits for farmers. Under the Telangana State Oil Palm Mission, the state aims to expand cultivation to 20 lakh acres by 2024–25. Subsidies of up to Rs 36,000 per acre are provided during the initial three years. Reports suggest that farmers in the state have seen up to a 50% price increase, with rates reaching Rs 21,000 per tonne. High returns, estimated at Rs 1 lakh per acre, have drawn a diverse range of cultivators, including NRIs and retired professionals.

 

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