malaysia Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani on Tuesday termed India’s recent increase in palm oil import duty as a “temporary deviation”, saying demand for the oil remains stable. Ghani rejected speculation about an arrangement between Malaysia and India for the supply of palm oil in exchange for the transfer of fighter aircraft. India, the world’s largest edible oil importer, increased import duty on palm oil and other edible oils on September 14, 2023, increasing the effective duty on crude palm oil from 5.5 per cent to 12.7 per cent and on refined oils from 13.75 per cent to 35.75 per cent. Percentage is done.
Increasing taxes will not have any effect
Responding to a PTI-language question during a press conference on the sidelines of the Malaysia Palm Oil Forum, Ghani said, “For me, any deviation is temporary.” He said that India’s recent tariff policy The changes made will not create any ‘problem’. The minister stressed that India, with a population of 1.4 billion, has many options for edible oils, including palm, sunflower and soybean oils. “We will remain a good partner with India and continue to supply palm oil in a sustainable manner,” he said. Malaysia has offered to support India’s domestic palm oil cultivation. During his recent visit to India, Ghani met Agriculture Minister Shivraj Singh Chouhan and offered help to the country with seeds and technology.
Malaysia depends on Indian goods like rice, onion and sugar
Asked why Malaysia would support India’s palm oil farming given its own palm oil-dependent economy, Ghani cited the ‘special’ bilateral relationship. He said Malaysia is dependent on Indian commodities like rice, onion and sugar. According to the minister, Malaysian palm oil production this year has reached 12.6 million tonnes and is expected to exceed 19 million tonnes, the highest production since 2020. Ghani advocated fairness in global trade while addressing protectionist trade policies. He cited the European Commission’s recent announcement to delay the implementation of the EU’s deforestation regulation until December 30, 2025, pending approval.
28.4 lakh tonnes of palm oil exported to India in 2023
By August 2024, 81.24 percent of Malaysia’s palm oil plantations, equivalent to 4.6 million hectares, are Malaysia Sustainable Palm Oil certified. Ghani said the Malaysian palm oil sector faces challenges from changing market dynamics, trade policies and environmental concerns. “Malaysia believes that it would be in the best interest of the nations to enhance meaningful two-way engagement rather than imposing rules on others,” he said. According to Malaysian Palm Oil Board (MPOB) data, Malaysia has overtaken India in the year 2023. India exported 28.4 lakh tonnes of palm oil to Malaysia, thereby maintaining its position as the top destination for Malaysian palm oil.
