South Asia (Jan – Nov) 2021

Malaysian Palm Oil Export to South Asia Region
(January-November 2021)
A Review on MPO Export Performance

Table 1: A Review on MPO Export Performance (MT)

No.CountryJan-Nov
2021
Jan-Nov
2020
Diff (Vol)Diff (%)
1.India3,226,3612,178,5171,047,84448.10
2.Pakistan574,608955,752(381,143)(39.88)
3.Afghanistan108,02969,42938,60055.60
4.Bangladesh89,335301,996(212,661)(70.42)
5.Sri Lanka69,053117,091(48,038)(41.03)
6.Maldives5,1404,9861543.10
7.Nepal2,5832,4011817.55
 Grand Total4,075,1103,630,172444,93812.26

 Source: MPOB

During Jan-Nov 2021 period, MPO exports to the South Asian region registered a total of 4,075,110 MT against 3,630,172 MT registered during the same period of last year. This is an increase of 444,938 MT or by 12.26% and was contributed mainly by higher imports by India.

MPO exports to India during Jan-Nov 2021 period increased by 48.10% from 2,178,517 MT to 3,226,361 MT. Higher palm oil intake reflects the greater operating level in the HORECA sector. Refined palm olein export from Malaysia has been showing remarkable recovery as a result of being placed in the ‘free’ import list. During Jan-Nov 2021, exports of Malaysian RBD palm olein increased from 6,942 MT to 270,521 MT.

During this period, Malaysia exported 2,757,190 MT of CPO, an increase from 2,029,601 MT during the same corresponding period last year. This could be attributed to Indonesia’s latest palm oil export tax revision. The revised export tax has seen the prices of processed palm oil originating from Indonesia becoming more competitive compared to from Malaysia. As a result, major CPO consuming countries including India turning to Malaysia for CPO supplies.

Table 2: MPO Exports to India by Type of Products (MT)

TYPE OF PRODUCTSJan-Nov
2021
Jan-Nov
2020
Diff (Vol)Diff (%)
CPO2,757,1902,029,601727,58935.85
RBD PL270,5216,942263,5793,796.62
PFAD60,95597,014(36,059)(37.17)
PAO12,4059,4562,94831.18
RBD PO9,0073,3675,639167.46
RBD PS12,2894,4787,811174.44
OTHERS103,99427,65876,336276.00
TOTAL3,226,3612,178,5171,047,84448.10

Source: MPOB

MPO exports to Pakistan during this period decreased significantly by almost 40% from 955,752 MT to only 574,608 MT. The exports of Malaysian palm oil in bulk have shown a decreasing trend from the start of 2021. The decline in the Malaysian palm oil exports during Jan-Nov 2021 is attributed to several factors including higher than usual discount on refined palm oil fractions from Indonesia and low supply of CPO from Malaysia. Malaysian companies who used to regularly offer cargos to Pakistan have not been active in 2021 due to shortage of CPO and their commitments in other markets.

Table 3: MPO Exports to Pakistan by Type of Products (MT)

TYPE OF PRODUCTSJan-Nov
2021
Jan-Nov
2020
Diff (Vol)Diff (%)
CO / DPL159,116141,93817,17712.10
RBD PL275,109565,016(289,908)(51.31)
CPO41,749108,008(66,259)(61.35)
RBD PO65,72890,982(25,254)(27.76)
PAO16,31226,035(9,722)(37.34)
OTHERS16,59523,773(7,178)(30.19)
TOTAL574,608955,752(381,143)(39.88)

Source: MPOB

MPO exports to Bangladesh during Jan-Nov 2021 have also reduced greatly when only 89,335 MT recorded compared to 301,996 MT recorded during the same corresponding period of last year. The Covid-19 pandemic has greatly affected the demand of palm oil in the HORECA sector and this has also impacted the palm oil intake into the country including from Malaysia. Most importantly, MPO prices were more competitive as compared to IPO especially in the months of Mar-May and Aug-Oct 2020. MPO price is reportedly no longer competitive this year and Indonesian companies are said to be able to offer an average of USD 15-20 per tonne discount to the Bangladeshi buyers in the past several months.

Table 4: MPO Exports to Bangladesh by Type of Products (MT)

TYPE OF PRODUCTSJan-Nov
2021
Jan-Nov
2020
Diff (Vol)Diff (%)
RBD PL80,459279,152(198,693)(71.18)
RBD PO7029,069(8,368)(92.26)
CO / DPL3462,671(2,324)(87.03)
CPL02,557(2,557)(100.02)
RBD PS2,2763,003(727)(24.22)
RBDPL FOR RSPO FROM SEGREGATED2,0751,44562943.54
OTHERS3,4774,099(622)(15.17)
TOTAL89,335301,996(212,661)(70.42)

Source: MPOB

During this period, Sri Lanka imported a total of 69,053 MT of MPO and its products, which is 41.03% lower compared to the same period of 2020. The lower import volume could be attributed to the palm import ban after palm oil fractions were put under controlled list since April 2021.

Table 5: Breakdown of MPO Exports (MT)

PRODUCTJan-Nov
2021
Jan-Nov
2020
Diff (Vol)Diff (%)
CPO2,828,8992,160,958667,94130.91
RBD PL645,712885,362-239,650(27.07)
CO / DPL265,201208,02957,17327.48
PFAD63,693100,172-36,479(36.42)
CPL113,44996,45316,99617.62
RBD PO76,221104,319-28,098(26.93)
PAO28,88635,602-6,716(18.86)
RBD PS24,64727,790-3,143(11.31)
HPO180420-240(57.14)
Others28,22111,06717,154155.00
TOTAL4,075,1103,630,172444,93812.26

Source: MPOB

Chart 1: Breakdown of MPO Exports (MT)

Source: MPOB

In terms of breakdown, the biggest product being exported to the region during Jan-Nov 2021 period is crude palm oil (CPO) accounting for 69% of total exports. After CPO, RBD palm olein is another major palm oil product exported into the South Asian region, accounting for 16% of total exports (refer to Table 4). These two palm oil products accounted for 85% of the total MPO exports to this region.


For more info please contact Mrs Azriyah Email : azriyah@mpoc.org.my

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