The Asian Palm Oil Alliance, a non-profit organization representing countries that consume palm oil, has expressed concerns regarding Hindustan Unilever Ltd.'s reported intention to cut the palm oil content in its soaps by 25%.
Atul Chaturvedi, chairman of APOA, in a letter to Rohit Jawa, HUL's chief executive officer and managing director, cautioned against such a move might compromise international endeavors to protect the livelihoods of countless palm oil producers, especially those who are smallholders.
While acknowledging that palm oil prices have risen due to increased input costs, Chaturvedi argued that singling out palm oil for criticism is "unfair and uncalled for", as prices are influenced by demand and supply factors, similar to other edible oils like soya and sunflower.
The palm oil body urged HUL to reconsider its decision and stated that replacing palm oil with cheaper alternatives could have serious implications for palm oil farmers worldwide.
"Replacing palm oil with cheaper substitutes undermines global efforts to secure living wages for workers and incomes for farmers," the letter said.
HUL, a leading fast-moving consumer goods company, reportedly plans to reduce palm oil content in its soaps citing rising palm oil prices and environmental concerns.
The APOA—which represents India, Bangladesh, Pakistan, Sri Lanka, and Nepal—works towards promoting sustainable palm oil production and consumption.
(With inputs from PTI)
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