Largest Producer of Palm Oil: Indonesia is the world’s largest producer of palm oil, producing more than 46 million tonnes annually. The country’s tropical climate, abundant land, and low production costs make it ideal for large-scale oil palm cultivation. Palm oil is a major contributor to Indonesia’s economy and is widely used in food products, cosmetics, and biofuels.
Which Country is the Largest Producer of Palm Oil in the World?
As of 2024, Indonesia ranks first in global palm oil production, followed closely by Malaysia. Together, these two Southeast Asian countries account for over 85% of the world’s palm oil supply. Other notable producers include Thailand, Nigeria, and Colombia.
Top 5 Palm Oil Producing Countries in the World
| Rank | Country | Production (Approx.) |
| 1 | Indonesia | 46 million tonnes |
| 2 | Malaysia | 19 million tonnes |
| 3 | Thailand | 3.4 million tonnes |
| 4 | Colombia | 1.8 million tonnes |
| 5 | Nigeria | 1.5 million tonnes |
1.Indonesia
Indonesia’s palm oil plantations cover over 16 million hectares, mostly in Sumatra and Kalimantan. It exports palm oil to over 100 countries, especially India, China, and the EU.
2.Malaysia
Malaysia pioneered the global palm oil trade and maintains high-quality processing standards. It is known for sustainable palm oil certification through the MSPO scheme.
3.Thailand
Palm oil is grown mostly by smallholders in southern Thailand. The country uses much of its production for domestic consumption and biodiesel.
4.Colombia
The largest producer in South America, Colombia exports palm oil to Europe and North America. It is focusing on environmentally friendly and conflict-free palm oil practices.
5.Nigeria
Nigeria is the top African producer of palm oil, though most of it is consumed domestically. The country is investing in modernising its outdated processing systems.
Interesting Facts About Palm Oil
1.Most Used Vegetable Oil – Palm oil is the most widely consumed vegetable oil globally; it is found in over 50% of packaged products, from snacks to shampoo.
2.High Yield Crop – Oil palm trees produce more oil per hectare than any other crop, making them more land-efficient compared to soybean or sunflower.
3.Controversial but Essential – Palm oil production is linked to deforestation and habitat loss; however, sustainable practices are gaining ground through RSPO certification.
4.Long Shelf Life – Palm oil resists oxidation and stays fresh longer than other oils, which is why it is preferred in processed foods and cosmetics.
5.Major Biofuel Source – Palm oil is also used in biodiesel and renewable energy sectors; several countries blend it into transport fuels to reduce carbon emissions.
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