New Delhi, May 18 -- Even as India grapples with oil and gas supply concerns arising from the West Asia war, another pressure point may be emerging in edible oils.

Indonesia and Malaysia, the world's largest palm oil exporters, are increasingly diverting supplies to biodiesel blending programmes to reduce dependence on fossil fuels. This has implications for India, where domestic edible oil production is insufficient to meet demand, and palm oil accounts for the largest share of imports due to its lower cost. Any tightening of global supplies could add to food inflationary pressures and widen import vulnerability.

Palm oil is among the world's most consumed edible oils due to its low cost, high yield and wide use across food and industr...