South Asia (Jan -May) 2022

Malaysian Palm Oil Export to South Asia Region
(January-May 2022)
A Review on MPO Export Performance

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

No.CountryJan-May
2022
Jan-May
2021
Diff (Vol)Diff (%)
1.India1,214,8891,295,494(80,605)(6.22)
2.Pakistan180,358239,366(59,008)(24.65)
3.Bangladesh104,62957,06247,56783.36
4.Afghanistan35,72931,8403,88912.21
5.Sri Lanka13,68830,702(17,014)(55.42)
6.Maldives2,3742,851(477)(16.73)
7.Nepal1901,745(1,555)(89.11)
 Grand Total1,551,8561,659,060(107,204)(6.46)

 Source: MPOB

During Jan-May 2022 period, MPO exports to the South Asian region registered a total of 1,551,856 MT against 1,659,060 MT which was registered during the same period of last year. This represents a decrease of 107,204 MT or by 6.46%. India’s market share rose to 78% as the biggest importer of MPO in this region.

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

TYPE OF PRODUCTSJan-May
2022
Jan-May
2021
Diff (Vol)Diff (%)
CPO893,4011,171,572(278,171)(23.74)
RBD PL235,03153,987181,044335.35
PFAD36,82133,0843,73711.30
RBD PS21,7441,96419,7811,007.38
CPO (RSPO -MASS BALANCE)14,70025014,4505,783.49
RBD PO1,4084,357(2,949)(67.69)
OTHERS11,78430,281(18,497)(61.08)
TOTAL1,214,8891,295,494(80,605)(6.22)

Source: MPOB

MPO exports to India during Jan-May 2022 period decreased slightly by 6.22% from 1,295,494 MT to 1,214,889 MT. This is mainly due to the increase in the imports of soft oils into the country indicating a definite substitution taking place as a result of high palm oil prices. This has also been aided by the abolishment of all duties on soft oils by the Government of India, for a limited quantity.

At the same time, India has also turned to other palm oil supplier like Thailand due to the shortages in supplies from both Malaysia and Indonesia. Imports of RBD palm olein continue to increase ever since refined oils being moved from “Restricted” list to “Free” list from July 2021 onwards. During Jan-May 2022, exports of Malaysian RBD palm olein increased from 53,987 MT to 235,031 MT. The rise in the import of RBD palm olein was also contributed by the huge disparity in prices of RBD palm olein and CPO after the government reduced the import duty on refined palm olein from 19.25% to 13.75%.

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

TYPE OF PRODUCTSJan-May
2022
Jan-May
2021
Diff (Vol)Diff (%)
RBD PL99,024120,207(21,183)(17.62)
CO / DPL63,59176,563(12,972)(16.94)
CPO11,00021,500(10,500)(48.84)
RBD PO3,45010,000(6,550)(65.50)
PAO1,7356,520(4,784)(73.38)
OTHERS1,5584,577(3,019)(65.96)
TOTAL180,358239,366(59,008)(24.65)

Source: MPOB

MPO exports to Pakistan during this period went down to a total of 180,358 MT from 239,366 MT recorded during the same corresponding period of last year. 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 which has since resulted in the decline in the market share.

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

TYPE OF PRODUCTSJan-May
2022
Jan-May
2021
Diff (Vol)Diff (%)
RBD PL92,34554,00238,34371.00
PFAD8,0611937,8684,082.28
RBD PS1,3602721,088400.00
RBDPL FOR RSPO FROM SEGREGATED1,0821,284(202)(15.71)
CO/DPL9221,026(105)(10.22)
OTHERS860285575201.75
TOTAL104,62957,06247,56783.36

Source: MPOB

MPO exports to Bangladesh recorded an increase during Jan-May 2022 period to a total of 104,629 MT from 57,062 MT during the same corresponding period of last year. The main reason for higher imports of palm oil from Malaysia are the shortage of Indonesian supply due to the export ban imposed by the country to stable the local market earlier this year. This has prompted the buyers to source more palm oil from Malaysia. The price competitiveness of MPO vis-à-vis Indonesian palm oil (IPO) has also contributed to the higher palm oil intake from Malaysia.

Other countries such as Afghanistan shows a stable intake of palm oil from Malaysia as the country imported 35,729 MT of MPO during Jan-May 2022, an increase of 12.21%. MPO exports to Sri Lanka decreased from 30,702 MT during Jan-May 2021 to 13,688 MT which is 55.42% 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)

PRODUCTJan-May
2022
Jan-May
2021
Diff (Vol)Diff (%)
CPO904,4011,195,012(290,611)(24.32)
RBD PL430,564236,243194,32182.25
CO / DPL101,418109,894(8,476)(7.71)
PFAD38,18133,3744,80714.40
RBD PS22,8557,42615,429207.76
CPL16,25140,400(24,149)(59.78)
CPO FOR RSPO FROM MASS BALANCE14,70025014,4505,783.49
RBD PO12,91915,103(2,185)(14.46)
PAO5,54014,760(9,219)(62.46)
Others5,0286,599(1,571)(23.81)
TOTAL1,551,8561,659,060(107,204)(6.46)

Source: MPOB

In terms of breakdown, the biggest products being exported to the region during Jan-May 2022 period are Crude Palm Oil (CPO) and RBD Palm Olein (RBD PL) accounting for 58% and 28% of total exports respectively (refer to Chart 1). These two palm oil products accounted for 86% of the total MPO exports to this region. Among the major importers of Malaysian RBD PL are India, Pakistan and Bangladesh. Major destinations for Malaysian CPO include India and Pakistan.

Chart 1: Breakdown of MPO Exports (MT)

Source: MPOB


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

*Disclaimer: This document has been prepared based on information from sources believed to be reliable but we do not make any representations as to its accuracy. This document is for information only and opinion expressed may be subject to change without notice and we will not accept any responsibility and shall not be held responsible for any loss or damage arising from or in respect of any use or misuse or reliance on the contents. We reserve our right to delete or edit any information on this site at any time at our absolute discretion without giving any prior notice. 

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