Sub Continent (Jan – Aug) 2021

Malaysian Palm Oil Export to Sub Continent Region
(Jan – Aug 2021)
A Review on MPO Export Performance

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

No.CountryJan-Aug
2021
Jan-Aug
2020
Diff (Vol)Diff (%)
1.India2,113,5001,176,274937,22679.68
2.Pakistan409,764751,273(341,509)(45.46)
3.Afghanistan79,70854,29325,41546.81
4.Bangladesh73,768217,736(143,967)(66.12)
5.Sri Lanka49,80398,101(48,297)(49.23)
6.Maldives4,0064,326(320)(7.40)
7.Nepal2,1972,201(3)(0.14)
8.Bhutan
 Grand Total2,732,7482,304,204428,54418.60

   Source: MPOB

During Jan-Aug 2021 period, MPO exports to the South Asian region registered a total of 2,732,748 MT against 2,304,204 MT which was registered during the same period of last year. This is an increase of 428,544 MT or by 18.6% contributed mainly by higher imports by India.

MPO exports to India during Jan-Aug 2021 period increased by almost 80% from just 1,176,274 MT to 2,113,500 MT. Malaysia exported 1,841,650 MT of CPO during Jan-Aug 2021, an increase from 1,068,734 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.

At the same time, Indonesia is still pursuing its B30 and B40 biodiesel mandate and will likely consume more CPO in order to achieve its target. The expected limited supply of CPO from Indonesia has inevitably created the demand for Malaysian CPO. Also, during the same period last year, MPO exports were affected by geo-political factors which fortunately are no longer relevant. The restrictions on refined oils were imposed at this time last year which saw a halt on the Malaysian refined palm oil into India. During Jan-Aug 2021, exports of Malaysian RBD palm olein increased from 6,541 MT to 133,644 MT.

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

TYPE OF PRODUCTSJan-Aug
2021
Jan-Aug
2020
Diff (Vol)Diff (%)
CPO1,841,6501,068,734772,91672.3
RBD PL133,6446,541127,1031943.2
PFAD56,05274,222(18,170)(24.5)
PAO11,0417,9823,05938.3
RBD PO8,3912,6575,734215.8
RBD PS3,8501,8531,996107.7
OTHERS58,87314,28544,588312.1
TOTAL2,113,5001,176,274937,22679.7

Source: MPOB

MPO exports to Pakistan during this period decreased significantly by 45% from 751,273 MT to only 409,764 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-July 2021 is attributed to several factors including higher than usual discount on refined palm oil fractions from Indonesia, low supply of CPO from Malaysia and aggressive selling attitude of Indonesian suppliers. Currently, there are approximately 8 suppliers who are offering regular palm oil cargo from Indonesia as compared to only two Malaysian companies.

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

TYPE OF PRODUCTSJan-Aug
2021
Jan-Aug
2020
Diff (Vol)Diff (%)
CO / DPL124,36194,25130,11031.9
RBD PL207,761479,788(272,027)(56.7)
CPO32,99966,163(33,163)(50.1)
RBD PO26,73077,483(50,753)(65.5)
PAO9,14017,514(8,373)(47.8)
OTHERS8,77316,075(7,302)(45.4)
TOTAL409,764751,273(341,509)(45.5)

Source: MPOB

MPO exports to Bangladesh during Jan-Aug 2021 have also reduced greatly when only 73,768 MT recorded compared to 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-Aug
2021
Jan-Aug
2020
Diff (Vol)Diff (%)
RBD PL67,549197,481(129,932)(65.8)
RBD PO6839,051(8,368)(92.5)
CO / DPL2592,596(2,337)(90.0)
CPL2,557(2,557)(100.0)
RBD PS1,6222,262(640)(28.3)
RBDPL FOR RSPO FROM SEGREGATED1,4881,04844042.0
OTHERS2,1682,742(574)(20.9)
TOTAL73,768217,736(143,967)(66.1)

Source: MPOB

During this period, Sri Lanka imported a total of 49,803 MT of MPO and its products, which is 49.23% 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-Aug
2021
Jan-Aug
2020
Diff (Vol)Diff (%)
CPO1,876,5891,139,546737,04397.8
RBD PL424,452709,829(285,377)(40.20)
CO / DPL202,318149,12453,19435.67
PFAD57,52076,074(18,553)(24.39)
CPL74,66882,524(7,857)(9.52)
RBD PO36,50390,091(53,588)(59.48)
PAO20,33125,606(5,276)(20.60)
RBD PS12,35417,352(4,998)(28.80)
HPO120300(180)(60.00)
Others18,8938,76210,131115.62
TOTAL2,732,7482,304,204428,54418.60

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-Aug 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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