Palm oil is derived from the oil palm tree, which is cultivated in over 42 countries of the world and is largely used as an edible cooking oil. Palm oil production in the world accounts up to around 35 million tons, it being at the second place regarding the edible vegetable oil production. The major producer countries of palm oil in the world along with their production figures pertaining to the year 2004-2005 are
Malaysia is the largest producer of palm oil in the world with approximately 43% contribution in the world’s production. Indonesia has been the closest competitor to the leader country in this production context. It contributes to approximately 40% in the world figures. The world production has increased with time and is still rising @ 7%. The same is the case with the area covered under the cultivation of oil palm tree. This crop is cultivated in around 28 million acres of land over the world.