Malaysian Palm Oil Export to Sub Continent Region
(Jan – Nov 2020)
A Review on MPO Export Performance
No. | Country | Jan-Nov 2020 |
Jan-Nov 2019 | Diff (Vol) | Diff (%) |
---|---|---|---|---|---|
1. | India | 2,178,517 | 4,270,864 | (2,092,347) | (49.0) |
2. | Pakistan | 955,881 | 994,531 | (38,650) | (3.9) |
3. | Bangladesh | 301,996 | 150,444 | 151,552 | 100.7 |
4. | Sri Lanka | 117,091 | 82,067 | 35,024 | 42.7 |
5. | Afghanistan | 69,170 | 64,948 | 4,222 | 6.5 |
6. | Uzbekistan | 29,657 | 50,983 | (21,326) | (41.8) |
7. | Kazakhstan | 14,574 | 17,943 | (3,369) | (18.8) |
8. | Maldives | 4,986 | 5,454 | (469) | (8.6) |
9. | Nepal | 2,401 | 5,802 | (3,401) | (58.6) |
10. | Turkmenistan | 1,358 | 826 | 532 | 64.4 |
11. | Kyrgyzstan | 591 | 1,513 | (923) | (61.0) |
12. | Tajikistan | 119 | 244 | (125) | (51.4) |
13. | Bhutan | 0 | 0 | 0 | 0.0 |
Grand Total | 3,676,341 | 5,645,619 | (1,969,279) | (34.9) |
During Jan-Nov 2020 period, MPO exports to the Sub-continent region recorded 3.68 million MT against 5.65 million MT which was registered during the same period of last year (refer to Table 1).
The decline is largely attributed to lower MPO exports by the biggest buyer in the region, India. During Jan-Nov 2020 period, total MPO exports to the country went down to 2.18 million MT from 4.27 million MT recorded during the same period last year (refer to Table 2). The restrictions on the importation of refined palm oil since January this year has greatly impacted the amount of palm oil export from Malaysia going into the country primarily during the first 6 months of 2020.
With the bilateral relationship between the two countries improving, MPO exports started picking up since July 2020 and this is evident as Malaysia started to export more CPO to India as Malaysian companies were reportedly able to offer competitive prices taking advantage of the full exemption from export duties that includes for CPO as announced by the Malaysian Government on 5 June 2020.
TYPE OF PRODUCTS | Jan-Nov 2020 |
Jan-Nov 2019 |
Diff (Vol) | Diff (%) |
---|---|---|---|---|
RBD PL | 6,942 | 2,334,540 | (2,327,597) | (99.7) |
CPO | 2,029,601 | 1,636,106 | 393,495 | 24.1 |
CPS | 4,995 | 123,169 | (118,174) | (95.9) |
PFAD | 97,014 | 99,063 | (2,049) | (2.1) |
CPL | 4,984 | 30,368 | (25,384) | (83.6) |
PAO | 9,456 | 31,396 | (21,940) | (69.9) |
OTHERS | 25,524 | 16,222 | 9,301 | 57.3 |
TOTAL | 2,178,517 | 4,270,864 | (2,092,347) | (49.0) |
TYPE OF PRODUCTS | Jan-Nov 2020 | Jan-Nov 2019 | Diff (Vol) | Diff (%) |
---|---|---|---|---|
RBD PL | 565,186 | 449,886 | 115,299 | 25.6 |
CPO | 108,008 | 199,234 | (91,226) | (45.8) |
CO / DPL | 141,938 | 198,320 | (56,382) | (28.4) |
RBD PO | 90,982 | 99,543 | (8,561) | (8.6) |
PAO | 25,994 | 29,691 | (3,697) | (12.5) |
OTHERS | 23,773 | 17,857 | 5,916 | 33.1 |
TOTAL | 955,881 | 994,531 | (38,650) | (3.9) |
TYPE OF PRODUCTS | Jan-Nov 2020 | Jan-Nov 2019 | Diff (Vol) | Diff (%) |
---|---|---|---|---|
RBD PL | 279,152 | 78,896 | 200,256 | 254 |
RBD PO | 9,069 | 566 | 8,503 | 1,501 |
CO / DPL | 2,671 | 3,625 | (955) | (26) |
CPL | 2,557 | 19,720 | (17,163) | (87) |
RBD PS | 3,003 | 437 | 2,567 | 588 |
PFAD | 2,629 | 1,795 | 834 | 46 |
OTHERS | 2,916 | 45,405 | (42,489) | (94) |
TOTAL | 301,996 | 150,444 | 151,552 | 101 |
Competitive price of RBD olein at C&F level vis-a-vis its other competitor such as CDSBO has also contributed to the increase of MPO export into Bangladesh at least during the first 5 months of 2020. However, it has been reported that MPO has been losing its price competitiveness since June 2020 due to discounted prices which are being offered by competitors, thus shifting the buying preference to more competitively-priced palm oil.
Other country such as Sri Lanka also saw its palm oil imports from Malaysia increased notably. Total MPO exports reached 117,091 MT during Jan-Nov 2020, 42.7% higher compared to the same period last year. The country’s higher edible oils requirements against the backdrop of insufficient domestic production of oils and fats has led to higher palm oil imports. Some of the palm oil is also being re-exported to India as local traders taking advantage on the Free Trade Agreement (FTA) between the two countries that enables Sri Lanka to export their products to India at zero duty.
Among the countries in the Central Asian region, Afghanistan appeared to be the most important MPO buyer up to September this year. MPO exports to this country have increased by 6.5%, registering a total of 69,170 MT during Jan-Oct 2020 period as Afghanistan continues to be relying on edible oils imports to fulfil domestic needs. However, MPO exports to Uzbekistan and Kazakhstan continue to be on decreasing trend registering a drop of 41.8% and 18.8% respectively. The global Covid-19 pandemic is having a negative impact on these countries’ economies that also saw local edible oil consumption took a tumble with the closure of restaurants due to nationwide lockdowns.
Chart 1: Breakdown of MPO Exports (MT)
Source: MPOB
PRODUCT | Jan-Nov 2020 | Jan-Nov 2019 | Diff (Vol) | Diff (%) |
---|---|---|---|---|
RBD PL | 890,384 | 2,897,454 | (2,007,069.5) | (69.3) |
CPO | 2,145,013 | 1,892,102 | 252,911.2 | 13.4 |
CO / DPL | 208,827 | 263,103 | (54,276.6) | (20.6) |
RBD PO | 135,862 | 129,216 | 6,645.8 | 5.1 |
CPS | 4,995 | 123,169 | (118,173.7) | (95.9) |
CPL | 96,453 | 105,955 | (9,501.8) | (9.0) |
PFAD | 100,172 | 101,860 | (1,688.3) | (1.7) |
PAO | 35,561 | 61,252 | (25,690.8) | (41.9) |
RBD PS | 27,795 | 28,913 | (1,118.6) | (3.9) |
HPO | 4,700 | 22,905 | (18,205.4) | (79.5) |
Others | 26,578 | 19,689 | 6,888.9 | 35.0 |
TOTAL | 3,676,341 | 5,645,619 | (1,969,278.8) | (34.9) |
For more info please contact Mrs Azriyah Email : azriyah@mpoc.org.my
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