Sub Continent (Jan – Feb) 2021

Malaysian Palm Oil Export to Sub Continent Region
(Jan – Feb 2021)
A Review on MPO Export Performance

Table 1: A Review on MPO Export Performance (MT)

No.CountryJan-Feb
2021
Jan-Feb
2020
Diff (Vol)Diff (%)
1.India284,40468,006216,398318.2
2.Pakistan64,266217,849(153,583)(70.5)
3.Bangladesh19,76822,790(3,022)(13.3)
4.Sri Lanka17,73750,185(32,448)(64.7)
5.Afghanistan11,99712,102(105)(0.9)
6.Uzbekistan2,4163,682(1,265)(34.4)
7.Maldives9878929514.2
8.Nepal5731,013(441)(43.5)
9.Kazakhstan4853,091(2,606)(84.3)
10.Turkmenistan0531(531)(100.0)
11.Kyrgyzstan086(86)(100.0)
12.Tajikistan0000
13.Bhutan
 Grand Total402,634380,22722,4075.9

During Jan-Feb 2021 period, MPO exports to the sub-continent region recorded 402,634 MT against 380,227 MT which was registered during the same period of last year.

MPO exports to India during Jan-Feb 2021 period recorded an impressive increase of 318.2% from just 68,006 MT to 284,404 MT. Malaysia exported 254,524 MT of CPO during Jan-Feb 2021, an increase from 47,427 MT during the same corresponding period last year. This could be attributed to Indonesia’s latest palm oil export tax revision. The revised export tax has seen the prices of processed palm oil originating from Indonesia becoming more competitive compared to from Malaysia. As a result, major CPO consuming countries including India turning to Malaysia for CPO supplies.

At the same time, Indonesia is still pursuing its B30 and B40 biodiesel mandate and will likely consume more CPO in order to achieve its target. The expected limited supply of CPO from Indonesia has inevitably created the demand for Malaysian CPO. Also, during the same period last year, the restrictions on refined oils were imposed which saw a halt on the Malaysian refined palm oil into India. During Jan-Feb 2021, exports of Malaysian RBD palm olein increased from 3,933 MT to 13,415 MT.

Table 2: MPO Exports to India by Type of Products (MT)
TYPE OF PRODUCTS Jan-Feb
2021
Jan-Feb
2020
Diff (Vol) Diff (%)
CPO 254,524 47,427 207,097 436.7
RBD PL 13,415 3,933 9,482 241.1
PFAD 11,135 6,319 4,816 76.2
PAO 3,453 3,320 133 4.0
RBD PO 177 84 93 110.1
RBD PS 179 242 (63) (26.1)
OTHERS 1,522 6,681 (5,159) (77.2)
TOTAL 284,404 68,006 216,398 318.2
Source : MPOB
MPO exports to Pakistan during this period decreased significantly by 70.5% from 217,849 MT to only 64,266 MT. In the month of January, the discount offered by Indonesian suppliers was ranging between USD 15-18 per MT which usually is under USD 10. This shifted the bulk of the volume to the Indonesian suppliers. The Malaysian suppliers were also facing supply shortages in January which also compounded the whole situation. The supply shortage situation from Malaysia then worsened in February and key exporters like FELDA and KLK were not offering any cargo. It was reported that some Malaysian suppliers also used third party exporters in Indonesia to meet their clients’ requirements in Pakistan. This situation is likely to continue in the months of March and April if the production woes in Malaysia continue. Table 3: MPO Exports to Pakistan by Type of Products (MT)
TYPE OF PRODUCTS Jan-Feb
2021
Jan-Feb
2020
Diff (Vol) Diff (%)
CO / DPL 33,106 15,459 17,647 114.2
RBD PL 20,840 182,169 (161,329) (88.6)
CPO 5,000 5,000 0 0.0
RBD PO 3,000 11,000 (8,000) (72.7)
PAO 1,963 2,802 (839) (29.9)
OTHERS 357 1,419 (1,062) (74.8)
TOTAL 64,266 217,849 (153,583) (70.5)
Source : MPOB
MPO exports to Bangladesh during Jan-Feb 2021 period experienced a slight decrease of 13.3% from 22,790 MT to 19,768 MT. In December 2020, palm oil price was reportedly not competitive which resulted in cargoes purchased in that month arriving in January 2021. This has led to lower imports in Jan-Feb 2021 period. It is worth to note that only bulk shipments are taken into account while reporting whilst the details on the origin of palm oil products shipped in consumer packs/containers are not provided. Also, MPOB data is based on shipment date basis with a time difference of 3-4 weeks which contributes to a lower recording of MPO exports to Bangladesh. Table 4: MPO Exports to Bangladesh by Type of Products (MT)
TYPE OF PRODUCTS Jan-Feb
2021
Jan-Feb
2020
Diff (Vol) Diff (%)
RBD PL 18,490 15,658 2,832 18.1
RBD PS 746 1,004 (258) (25.7)
RBDPL FOR RSPO FROM SEGREGATED 398 399 (1) (0.2)
RBD PO 112 99 13 12.7
CO / DPL 0 2,447 (2,447) (100.0)
CPL 0 2,447 (2,447) (100.0)
OTHERS 22 737 (714) (97.0)
TOTAL 19,768 22,790 (3,022) (13.3)
Source : MPOB

In terms of breakdown, the biggest product being exported to the region during Jan-Feb 2021 period is crude palm oil (CPO) accounting for 65% of total exports. After CPO, RBD palm olein is another major palm oil product exported into the Sub-Continent region, accounting for 14% of total exports. These two palm oil products accounted for 84% of the total MPO exports to this region.

Table 5: Breakdown of MPO Exports (MT) 
PRODUCT Jan-Feb
2021
Jan-Feb
2020
Diff (Vol) Diff (%)
CPO 260,464 56,077 204,388 364.5
RBD PL 57,206 206,281 (149,075) (72.3)
CO / DPL 45,153 31,300 13,853 44.3
PFAD 11,153 6,319 4,834 76.5
CPL 13,906 48,764 (34,858) (71.5)
RBD PO 5,553 16,078 (10,525) (65.5)
PAO 5,454 6,121 (667) (10.9)
RBD PS 1,044 2,282 (1,238) (54.2)
HPO 498 1,781 (1,282) (72.0)
Others 7,756 5,224 2,532 48.5
TOTAL 402,634 380,227 22,407 5.9
Source: MPOB

Chart 1: Breakdown of MPO Exports (MT)

Source: MPOB


For more info please contact Mrs Azriyah Email : azriyah@mpoc.org.my

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