MPOC Projects Oils & Fats Exports to India to Decline by 2%

The Malaysian Palm Oil Council (MPOC) expects exports of oils and fats to India to decline by 2% to 600,000 tons this year due to the increase in the country’s domestic production, reports the Bernama on January 13.  MPOC chief executive officer (CEO) Wan Aishah Wan Hamid said measures taken by Indian government such as the National Mission Edible Oil-Oil Palm (NMEO-OP) will have an immediate impact on the market.  
Key highlights of the mission are to increase the total area under oil palm plantation from 0.37 million hectares to one million hectares while the production of crude palm oil (CPO) is expected to go up by 1.12 million tons until 2026 and up to 2.8 million tons by 2030.  “India is a key player in the oils and fats industry and any policy change usually has an immediate impact on the market.  The Indian government reviews its policies periodically and introduce changes; at times with sunset clauses, to limit the impact of certain factors like high prices, food inflation, and more,” she said.
  Wan Aishah said this when delivering her presentation titled ‘Changing Dynamics of the Indian Edible Oil Policy and its Impact on the Palm Oil Demand’ at the Palm Oil Economic Review and Outlook Seminar (R&O) 2022 organized by the Malaysian Palm Oil Board (MPOB).  She said Malaysian palm oil exports to India have a high of 4.4 million tons in 2019 to a low of 2.7 million tons in 2020, mainly in reaction to the change in import policy.  Malaysian palm oil exports to India in 2021 amounted to 3.6 million tons, thus retaining its position as the number one buyer of Malaysian palm oil.