Sub Continent (Jan – Aug) 2019

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

The overall exports of Malaysian palm oil to this region during the Jan-Aug 2019 period was 4,516,747 MT. This is an increase by 1,673,441.7 MT or by 58.9% compared to the same period of 2018. India contributed to 80% of the total MPO import by the Sub Continent region for the Jan- Aug 2019 period.

No.CountryJan-Aug 2019Jan-Aug 2018Difference (MT)Difference (%)
3Sri Lanka52,379150,878(98,499.0)(65.3)
 Grand Total4,516,7472,843,3051,673,441.7 58.9
Source: MPOB

There was significant reduction in MPO import by Bangladesh, which fell by 76.6% or 138,114 MT and Sri Lanka which declined by 65.3% or 98,499 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.  There was also a slight decrease in MPO imports in Pakistan by 15.9% or 112,176 MT due to increasing import of CPO from Indonesia.

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 Malaysian palm oil which were then 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 – Aug 2019

Malaysian Palm Products Export to Sub Cont Region  (By Products)
ProductJan-Aug 2019Jan-Aug 2018Diff (MT)Diff (%)
RBD PL2,501,379958,8431,542,535.5160.9
CO / DPL179,662110,30869,353.462.9
RBD PO70,579197,988(127,408.4)(64.4)
RBD PS21,84810,89210,956.3100.6
TOTAL4,516,7462,843,2131,673,532.1 58.9
Source: MPOB

Malaysian Palm Products Export to India  (By Products)
ProductJan-Aug 2019Jan-Aug 2018Diff (MT)Diff (%)
RBD PL2,165,003252,8161,912,187756.4
Source: MPOB

The exports of palm products from Malaysia to India increased by 1,953,212 MT or 117.7% for Jan-Aug 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 was 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 1,912,187 MT or 756.4% but instead saw a reduction in the import of CPO which dropped by 11,501 MT or by 0.9%.

Malaysian Palm Products Export to Pakistan  (By Products)
ProductJan-Aug 2019Jan-Aug 2018Diff (MT)Diff (%)
RBD PL290,856519,299(228,443.6)(44.0)
CO / DPL130,060104,26625,794.324.7
RBD PO74,83642,59132,244.875.7
Source: MPOB

The export of palm products from Malaysia to Pakistan decreased by 61,605 MT or 8.1% in Jan-Aug 2019 compared with the same period of last year. This decline is primarily because of the duty-free export of CPO from Indonesia which has resulted in large quantities of CPO coming from Indonesia. In early July 2019, Pakistan announced an increase in Additional Custom Duty from 2% to 7% while Central Excise Duty was increased from 16% to 17%. However, after immense pressure from the edible oil manufacturers and consumer watch groups, the Additional Custom Duty was reduced to 2% but the Central Excise Duty rate remained in force. Export of Malaysian RBD PL to Pakistan declined by 44% or by 228,443.6 MT. Other factors attributed to the decline was sharp devaluation in the rupee, disruption in lifting cargo from ports and long waiting time for ships to discharge at Port Qasim.

For more info please contact Mrs Nur Adibah
Email :

Stay In Touch

Stay In Touch

Leave a Reply