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The Malaysian Palm Oil Board (MPOB) expects palm oil exports to recover in the second half of this year, buoyed by increased demand during the festive season in key markets.
MPOB Director-General Datuk Dr Ahmad Parveez Ghulam Kadir told Bernama that "demand, particularly from India, is due to the need to replenish stocks ahead of the festive season, the attractiveness of palm oil prices, and lower import duties on crude vegetable oils." Ahmad Parveez visited New Delhi last week to speak at a conference organised by the Indian Vegetable Oil Producers' Association (IVPA).
In the first half of this year, Malaysian exports of palm oil and palm-based products fell 7.4 percent to 11.39 million tonnes, compared with the January-June period of last year, according to MPOB figures.
Palm oil exports were recorded at 6.95 million tonnes during the first-half period, a decline of 7.7 percent from the corresponding period in 2024, as demand weakened in India, China, the European Union, Bangladesh and Egypt.
However, despite the overall drop in palm oil exports in the first half of 2025, Malaysia saw growth in volumes shipped to the Philippines, Iran, Kenya and Nigeria.
Ahmad Parveez said that despite the decline in export volumes, Malaysia's revenue from palm oil and palm products during the January-June 2025 period rose 9.3 percent to 53.43 billion ringgit compared with the same period last year. The value of palm oil exports alone stood at nearly 34 billion ringgit.
The geographical reach of Malaysian palm oil has expanded in recent years. Malaysia's full-year palm oil export volume is expected to fall by 5.3 percent from the 16.9 million tonnes recorded in 2024.
On the Indian market, Ahmad Parveez said demand remains particularly strong in the foodservice, household and food manufacturing sectors.
However, there are some challenges, chief among them India's import tax.
Ahmad Parveez said: "One of the main concerns is India's import policy, particularly the frequent adjustments to import duties. The recent increase in the effective duty on crude palm oil to 27.5 percent, and on refined palm oil to 35.75 percent, has significantly narrowed palm oil's natural price advantage over lighter oils such as soybean and sunflower oil."
He added: "While we recognise the policy objective behind India's push to boost domestic oilseed production under the National Mission on Edible Oils – Oilseeds, such measures have made palm oil imports more cost-sensitive and less predictable."
Malaysian Palm Oil Council (MPOC) CEO Belvinder Sron, speaking at the same industry conference in New Delhi, said the price gap facing palm oil, combined with an abundant global supply of soybean oil, has caused palm oil's share of India's vegetable oil imports to fall to 46 percent this year from 59 percent in 2023.
However, Malaysia's share of India's palm oil imports rose to 35 percent in the first half of this year, compared with 30 percent in 2023, Sron said in her presentation.
Source: Bernama