KUALA LUMPUR (July 28): The Indian Vegetable Oil Producers’ Association (IVPA) estimated India’s palm oil imports from Malaysia to remain stable in the second half of the year (2H22), making up about 55% of the country’s total palm oil imports despite Indonesia’s move to accelerate palm oil exports.
President Sudhakar Desai said this was in line with an increasing demand in India, which was expected to be about 800,000 tonnes per month for the next six months, an improvement of about 20% compared with the first half of 2022.
“Currently, India’s import for palm oil is about eight million tonnes and we do expect the Malaysian market share to continue to be 55% out of it,” he told Bernama at the Malaysia International Agricommodity Expo and Summit (MIACES) 2022 here on Thursday (July 28).
He said Malaysia has kept the policy very stable and helped to meet India’s demand during the period of Indonesia’s ban on palm oil export.
“The supply chain was maintained very well and Malaysia played a crucial role in the edible oil security for India’s demand in the last two months,” he said.
Meanwhile, Desai said a memorandum of understanding (MOU) has been signed between IVPA and the Malaysian Palm Oil Council (MPOC) at MIACES 2022 to strengthen the cooperation between Malaysia and India in palm oil industry.
“The MOU aims to collaborate in promoting the Indian palm oil industry and also exchange information pertaining to sustainability efforts as well as research and development in the area of palm oil,” he said.
He said both the association and MPOC would take up dynamic policy-related issues with respective policymakers for the benefit of the industry in both countries.
To recap, Indonesia, the world’s biggest producer of palm oil, banned exports of all palm oil products beginning April 28, 2022 to ensure the fulfilment of domestic needs amid the increasing prices.
However, the palm oil prices began to decline rapidly after Indonesia lifted the three-week ban on May 23 followed by the country’s waiving of export levy for all palm oil products from July 15 until Aug 31.
The latest development on June 4 saw Indonesia issued export permits for 275,454 tonnes of palm oil products since export resumptions in May.
Source : The Edge Markets