Malaysian Palm Oil Export to South Asia Region
(January-December 2022)
A Review on MPO Export Performance
Table 1: A Review on MPO Export Performance (MT)
| No. | Country | Jan-Dec 2022 | Jan-Dec 2021 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|---|
| 1. | India | 2,898,770 | 3,603,311 | (704,541) | (19.55) |
| 2. | Pakistan | 569,961 | 609,807 | (39,846) | (6.53) |
| 3. | Bangladesh | 227,461 | 91,386 | 136,075 | 148.90 |
| 4. | Afghanistan | 218,798 | 114,549 | 104,249 | 91.01 |
| 5. | Sri Lanka | 20,064 | 69,709 | (49,645) | (71.22) |
| 6. | Maldives | 7,974 | 6,149 | 1,825 | 29.68 |
| 7. | Nepal | 14,367 | 2,789 | 11,578 | 415.13 |
| Grand Total | 3,957,395 | 4,497,700 | (540,305) | (12.01) |
Source: MPOB
During Jan-Dec 2022 period, MPO exports to the South Asian region registered a total of 3,957,395 MT against 4,497,700 MT which was registered during the same period of last year, a decrease of 540,305 MT or by 12.01%. India holds the biggest market share of 73% being the largest importer of MPO in this region.
Table 2: MPO Exports to India by Type of Products (MT)
| TYPE OF PRODUCTS | Jan-Dec 2022 | Jan-Dec 2021 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|
| CPO | 2,393,671 | 3,097,531 | (703,860) | (22.72) |
| RBD PL | 352,417 | 299,058 | 53,359 | 17.84 |
| PFAD | 50,672 | 63,989 | (13,317) | (20.81) |
| RBD PS | 42,632 | 12,558 | 30,075 | 239.49 |
| CPO FOR RSPO AND ISCC | 26,699 | 32,020 | (5,321) | (16.62) |
| PAO | 11,512 | 12,444 | (932) | (7.49) |
| CPL | 7,503 | 57,743 | (50,239) | (87.01) |
| OTHERS | 13,664 | 27,969 | (14,305) | (51.15) |
| TOTAL | 2,898,770 | 3,603,311 | (704,541) | (19.55) |
Source: MPOB
MPO exports to India during Jan-Dec 2022 showed a decrease by 19.55% from 3,603,311 MT to 2,898,770 MT contributed by the overall lower crude palm oil imports into the country. Other factors include narrow price spreads of soft oils that saw higher imports of soybean and sunflower oil throughout 2022 as well as higher imports from Indonesia. During Jan-Dec 2022, crude soybean oil and crude sunflower oil imports have recorded a growth rate of 20% and 5% respectively, maintaining the share of soft oils in the total vegetable oil imports at 37.69%. The allocation of Tariff Rate Quota (TRQ) has also doubled the imports of soft oils which affected palm oil exports to the country. There is a noticeable increase in the imports of palm oil from Thailand as the market share now is at 8.8% as compared to 5.9% a year ago.
Table 3: MPO Exports to Pakistan by Type of Products (MT)
| TYPE OF PRODUCTS | Jan-Dec 2022 | Jan-Dec 2021 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|
| CO | 232,305 | 170,067 | 62,238 | 36.60 |
| RBD PL | 208,878 | 295,729 | (86,851) | (29.37) |
| RBD PO | 54,530 | 67,478 | (12,947) | (19.19) |
| CPO | 53,999 | 42,749 | 11,250 | 26.32 |
| PAO | 9,889 | 16,424 | (6,535) | (39.79) |
| OTHERS | 10,359 | 17,360 | (7,001) | (40.33) |
| TOTAL | 569,961 | 609,807 | (39,846) | (6.53) |
Source: MPOB
MPO exports to Pakistan during this period also went down to 569,961 MT from 609,807 MT recorded during the same corresponding period of last year. The main reasons for lower imports could be contributed to the high prices of palm oil in the first few months of 2022 which had great impact of palm oil demand. Pakistani buyers had not been aggressive in their purchase due to the high prices. At the same time, key Malaysian suppliers had faced a supply shortage and were not able to ship the requested amount of palm oil to Pakistan. Malaysian suppliers have been under pressure to meet the increased demand for palm oil from other regions due to the supply shortage of sunflower oil from the Black Sea region and the export ban by Indonesia. This has resulted in lack of supplies from the Malaysian companies who used to supply to traditional market like Pakistan.
Table 4: MPO Exports to Bangladesh by Type of Products (MT)
| TYPE OF PRODUCTS | Jan-Dec 2022 | Jan-Dec 2021 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|
| RBD PL | 207,807 | 82,145 | 125,662 | 152.98 |
| RBD PO | 8,164 | 702 | 7,463 | 1,063.61 |
| PFAD | 3,644 | 2,720 | 925 | 34.00 |
| RBD PS | 2,459 | 2,381 | 78 | 3.29 |
| RBDPL FOR RSPO FROM SEGREGATED | 1,866 | 2,242 | (375) | (16.75) |
| CO | 2,538 | 346 | 2,191 | 632.89 |
| OTHERS | 982 | 851 | 131 | 15.39 |
| TOTAL | 227,461 | 91,386 | 136,075 | 148.90 |
Source: MPOB
MPO exports to Bangladesh remained strong during Jan-Dec 2022 period to a total of 227,461 MT from 91,386 MT during the same corresponding period of last year. The main reasons for higher imports of palm oil from Malaysia are the shortage of Indonesian supply due to their Domestic Market Obligation (DMO) at the beginning of 2022 which prompted the buyers to source more palm oil from Malaysia. The festive seasons also contributed to the spike in the overall demand of palm oil in Bangladesh.
MPO export to Afghanistan registered an increase of 91.01% during Jan-Dec 2022 with 218,798 MT exported as compared to 114,549 MT recorded during the same period of last year. This is mainly contributed by higher cooking oil intake into Afghanistan that saw 216,883 MT exported into the country from 107,574 MT recorded during the same period of last year. Meanwhile, MPO exports to Sri Lanka continues to decrease from 69,709 MT to 20,064 MT which is 71.22% lower compared to the same corresponding period of 2022. The lower import volume could be attributed to the palm oil import restrictions after palm oil fractions were put under controlled list since April 2021. Under the new regulations, the importation of palm oil and its fractions which are chemically modified, palm oil in 210 litre cans and crude palm oil except palm olein, the liquid fraction obtained during fractionation of palm oil, has been banned. Palm oil and its fractions which are not chemically modified are allowed to be imported subject to special license regulations.
Table 5: Breakdown of MPO Exports (MT)
| PRODUCT | Jan-Dec 2022 | Jan-Dec 2021 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|
| CPO | 2,447,670 | 3,142,220 | (694,550) | (22.10) |
| RBD PL | 776,690 | 697,962 | 78,729 | 11.28 |
| CO | 462,290 | 283,002 | 179,288 | 63.35 |
| RBD PO | 72,295 | 78,331 | (6,036) | (7.71) |
| PFAD | 55,954 | 66,727 | (10,773) | (16.14) |
| RBD PS | 49,582 | 25,527 | 24,055 | 94.23 |
| CPO FOR RSPO AND ISCC | 26,699 | 32,020 | (5,320) | (16.62) |
| OTHERS | 66,213 | 171,912 | (105,699) | (61.48) |
| TOTAL | 3,957,395 | 4,497,700 | (540,305) | (12.01) |
Source: MPOB
In terms of breakdown, the biggest product being exported to the region during Jan-Dec 2022 period is crude palm oil (CPO) accounting for 62% of overall palm oil imports followed by RBD palm olein (RBD PL) with 19%. These two palm oil products accounted for 81% of the total MPO exports to this region. Among the major importers of Malaysian CPO are India and Pakistan and major destinations for Malaysian RBD PL are India, Pakistan and Bangladesh. Cooking oil exports have also increased from 283,002 MT to 462,290 MT with major destinations include Pakistan and Afghanistan.
Chart 1: Breakdown of MPO Exports (MT): Jan-Dec 2022
Source: MPOB
For more info please contact Mrs Azriyah Email : azriyah@mpoc.org.my
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