Question

UPSC Prelims 2021 Question:

With reference to ‘palm oil’, consider the following statements:

  1. The palm oil tree is native to Southeast Asia.
  2. The palm oil is a raw material for some industries producing lipstick and perfumes.
  3. The palm oil can be used to produce biodiesel.

Which of the statements given above are correct?

  1. 1. 1 and 2 only
  2. 2. 2 and 3 only
  3. 3. 1 and 3 only
  4. 4. 1, 2 and 3

Answer (Detailed Solution Below)

Option 2: 2 and 3 only

Detailed Solution

Explanation: 

    • India is the world’s largest importer of palm oil, with more than 9 million tonnes imported annually mainly from Indonesia and Malaysia.

  • Palm oil is predominantly cultivated in tropical areas due to required climatic conditions (high rainfall and sufficient sunlight). Though the global market is dominated (84% global oil production) by only two countries: Indonesia and Malaysia, palm oil tree is native to Africa. So, statement 1 is not correct.

  • Palm oil is a versatile product which has diversified applications:

SI. No.

Application

Salient features

1.

Foods

  • Over two-thirds (68%) is used in foods ranging from margarine to chocolate, pizzas, breads and cooking oils.

2.

Industrial applications

  • 27% is used in industrial applications and consumer products such as soaps, detergents, cosmetics and cleaning agents.
  • Palm oil is  used in cosmetics for its moisturising properties. It is used in lipstick as it holds color well and doesn't melt at high temperatures. So, statement 2 is correct.

3.

Bioenergy

  • 5% is used as biofuels for transport, electricity or heat. 
  • In Germany, the largest use of palm oil is for biofuels (42%) than food (41%). So, statement 3 is correct.

Therefore, option (2) is the correct answer.

Relevance: In 2020, New Delhi made a move to restrict imports of refined palm oil and palmolein after Malaysia’s Prime Minister criticised India’s actions in Kashmir and its new citizenship law.

Subject: Geography | Natural Vegetation and Wildlife

Latest UPSC Exam 2026 Updates

Last updated on Sep, 2026

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