Kuala Lumpur: As per reports, Malaysia's Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani, has described India's recent increase in palm oil import duties as a "temporary aberration." Speaking during a press conference at the Malaysia Palm Oil Forum, Ghani reassured that despite the tariff changes, demand for palm oil from India remains strong.
Reportedly, Ghani dismissed rumours of any palm oil-for-fighter-jet trade deals between Malaysia and India. The minister emphasised that India, as the largest global importer of edible oils, continues to have multiple options for its oil needs, including palm, sunflower, and soybean oils.
According to reports, India raised import duties on palm oil and other edible oils on September 14, 2023, with the duty on crude palm oil jumping from 5.5 percent to 12.7 percent, and refined oils rising from 13.75 percent to 35.75 percent.
While Malaysia's economy is heavily reliant on palm oil exports, Ghani cited the "special" relationship between the two nations, noting Malaysia’s dependence on Indian commodities such as rice, onions, and sugar.
Malaysia’s palm oil production is on track to exceed 19 million tonnes in 2024, the highest since 2020. According to the Malaysian Palm Oil Board (MPOB), India accounted for 18.8 percent of Malaysia's total palm oil exports in 2023, importing 2.84 million tonnes.
Addressing broader concerns about protectionism in global trade, Ghani called for fair trade practices and emphasised the importance of meaningful engagement between nations, referencing the European Commission’s delay of the EU Deforestation Regulation until late 2025.
As of August 2024, over 81 percent of Malaysia’s palm oil plantations are certified under the Malaysia Sustainable Palm Oil (MSPO) scheme, covering 4.6 million hectares.
Ghani acknowledged the challenges posed by shifting market dynamics, environmental concerns, and trade regulations but expressed confidence in maintaining Malaysia's position as a key global supplier of sustainable palm oil.
Source-PTI
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