Sub Continent (Jan – Jun) 2019

Malaysian Palm Oil Export to Sub Continent Region
(Jan-Jun 2019)
A Review on MPO Export Performance

 

No.CountryJan-June 2019Jan- June 2018Difference (MT)

Difference
(%)

1.India2,585,2251,389,1581,196,067.286.1
2.Pakistan512,264627,692(115,427.5)(18.4)
3.Sri Lanka42,492119,147(76,655.3)(64.3)
4.Afghanistan37,05431,0186,035.819.5
5.Bangladesh27,288106,731(79,442.8)(74.4)
6.Uzbekistan20,81614,1826,634.346.8
7.Kazakhstan12,73413,316(582.8)(4.4)
8.Nepal3,5617992,762.0345.7
9.Maldives3,6343,124510.016.3
10.Turkmenistan573227345.8152.3
11.Kyrgyzstan3781,393(1,014.5)(72.8)
12.Tajikistan244442(198.3)(44.8)
13.Bhutan000.0N/A
 Grand Total3,246,2632,307,229939,033.8 40.7
Source: MPOB

The overall exports of Malaysian palm oil to this region during the Jan-June 2019 period were recorded at 3,246,263 MT. This is an increase by 939,033 MT or by 40.7% compared to the same period of 2018 contributed by higher import by India. India contributed to 79.6% of the total MPO import by the Sub Continent region for the Jan- June 2019 period.

There were significant reduction in MPO import by Bangladesh, which fell by 74.4% or 79,442.8 MT and Sri Lanka which declined by 64.3% or 76,655.3 MT. This is because Bangladesh imported a high amount of soybean oil which increased by more than 75% due to the narrowing discount between palm oil and soybean oil.

As for Sri Lanka, the drop in Malaysian palm oil export was mainly due to reduction of import duties by India. Previously, Sri Lanka was importing large volumes of Malaysian palm oil which they re-exported to India as local traders took advantage of the India-Sri Lanka Free Trade Agreement to export products to India at zero duty. However, with the reduction in import duties for palm oil from Malaysia by the Indian Government, it was more attractive for importers in India to import directly from Malaysia and as a result indirect imports of MPO through Sri Lanka has also dropped.

Breakdown of MPO Export (MT) to the Sub Continent Region Jan- June 2019

Malaysian Palm Products Export to Sub Cont Region  (By Products)
ProductJan- June 2019Jan- June 2018Diff (MT)Diff (%)
RBD PL1,795,307783,0261,012,280.6129.3
CPO1,004,8211,148,473(143,652.2)(12.5)
CO / DPL128,49276,63751,855.467.7
RBD PO78,28752,02226,265.050.5
CPL64,292114,152(49,860.4)(43.7)
CPS59,04543,20315,841.536.7
PFAD45,54550,371(4,826.5)(9.6)
PAO36,43620,06516,371.281.6
RBD PS16,0246,9369,087.7131.0
OTHERS18,01512,3445,671.545.9
TOTAL3,246,2632,307,229939,033.840.7
Source: MPOB

Malaysian Palm Products Export to India  (By Products)
ProductJan- June 2019Jan- June 2018Diff (MT)Diff (%)
RBD PL1,566,313189,4451,376,868726.8
CPO851,2231,082,019(230,796)(21.3)
CPS59,04543,20315,84236.7
PFAD43,55448,243(4,689)(9.7)
CPL30,36815,44814,92096.6
PAO23,3284,39818,929430.4
OTHERS11,3956,4014,99478.0
TOTAL2,585,2251,389,1581,196,06786.1
Source: MPOB

The exports of palm products from Malaysia to India increased by 1,196,067 MT or 86.1% for Jan-June 2019, when compared with the same period of last year. The reason for the increase is due to new import duty with effective of 1 January 2019 that provided advantage to Malaysian palm oil compared to Indonesian palm oil. Under the new import duty, RBD palm olein from Malaysia is taxed at 45% while for Indonesian is taxed at 50%. CPO from Malaysia and Indonesia has the same tax of 40%. This has resulted into sharp increase in export of Malaysian RBD PL, by 1,376,868 MT or 726.8% but instead saw a reduction in the import of CPO which dropped by 230,796 MT or by 21.3%.

Malaysian Palm Products Export to Pakistan  (By Products)
ProductJan- June 2019Jan- June 2018Diff (MT)Diff (%)
RBD PL192,372446,079(253,706.8)(56.9)
CPO148,73259,00289,729.7152.1
CO / DPL88,91871,85817,060.623.7
RBD PO60,83632,44128,394.887.5
PAO12,98015,539(2,559.0)(16.5)
OTHERS8,4262,7725,653.1203.9
TOTAL512,264627,692(115,427.5)(18.4)
Source: MPOB

The export of palm products from Malaysia to Pakistan decreased by 115,427.5 MT or 18.4% in Jan-June 2019 compared with the same period of last year. This decline is primarily because of the duty-free export of palm oil from Indonesia which has resulted in large quantities of palm oil coming from Indonesia. In February 2019, Indonesia has issued formal notification for correction of Indonesia-Pakistan Preferential Trade Agreement (PTA) by offering immediate market access for 20 other products of Pakistan’s prime interest originally signed in February 2012. Export of Malaysian RBD PL to Pakistan declined by 56.9% or by 253,706.8 MT.

 


For more info please contact Mrs Nur Adibah
Email : nuradibah@mpoc.org.my

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