MUMBAI: Policy proposals that will address concerns in the Malaysian palm oil industry, including the impact of the low palm oil tax structure by Indonesia, will be presented to the Government soon.
Minister of Plantation Industries and Commodities Tan Sri Bernard Dompok said the Government wanted a win-win situation for stakeholders in the palm oil industry.
“It (the proposals) will cover everything.
“The tax structure will be an element to be considered by the Government. We need balance the interests of the upstream sector and the refiners,” he told reporters after officiating the opening of the Malaysia-India Palm Oil Trade Fair and Seminar 2012 (POTS).
The two-day event, which ends today at the ITC Maratha Hotel, is organised by the Malaysian Palm Oil Council (MPOC) and Malaysian Palm Oil Board (MPOB).
Earlier, Solvent Extractors Association of India president Sushil Goenka said in his speech that the bulk of imports of palm oil products by India was from Indonesia.
“The imports from Indonesia are cheaper although we prefer importing from Malaysia because of the quality and ease of dealings,” he said.
Last year, palm oil accounted for about 6.78 million tonnes or 40% of India’s oils and fats market of 18 million tonnes.
In 2011, Malaysia exported more than 1.82 million tonnes of palm oil products to India, which were valued at US$1.96bil (RM6bil).
This was a 37% increase year-on-year, compared with the 1.33 million tonnes exported to India in 2010.
Dompok said this year, Malaysia’s export of palm oil products to India was expected to be higher compared with 2011.
“Even though it is still too early to tell what will be the final figure, the observation during the first quarter of 2012 looks very promising,” said Dompok.
Dompok also said the private sector in both Malaysia and India can redefine the approaches to form partnerships and strategic alliances, in order to discover new avenues for expanding the edible oil and palm oil business.
“There are opportunities to explore investments in downstream higher value-added palm derivatives, such as oleochemicals, pharmaceuticals, processed foods, specialty products and even consumer brands,” he said.
Dompok also witnessed a signing ceremony between Export-Import Bank of Malaysia Bhd and ICICI Bank, concerning an initiative to provide facilities to enhance palm oil trade between Malaysia and India.
Source : TheStar