MPOB expects palm oil exports to recover in second half of 2025
'The demand, particularly from India, is due to the need to replenish stock for the festive season, attractive palm oil pricing and lower import duty on crude vegetable oils,' MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir told Bernama.
Ahmad Parveez was in New Delhi last week to speak at a conference organised by the Indian Vegetable Oil Producers' Association.
In the first half of this year, Malaysian exports of palm oil and palm-based products dipped 7.4% to 11.39 million tonnes compared with the January-June period last year, according to MPOB.
Palm oil exports were recorded at 6.95 million tonnes during the half-year period, representing a drop of 7.7% over the corresponding period in 2024 as demand weakened in India, China, the European Union, Bangladesh and Egypt.
Nonetheless, despite a drop in the overall palm oil exports in the first half of 2025, Malaysia saw a growth in volumes to the Philippines, Iran, Kenya and Nigeria.
Ahmad Parveez said although export tonnage had dropped, Malaysia's earnings from palm oil and palm products during the January to June 2025 period surged 9.3% to RM53.43bil compared with the same period last year.
The value of palm oil exports almost hit a total of RM34bil.
Malaysian palm oil has gained in geographical reach in recent years.
The country's full-year palm oil exports by volume this year are projected to be 5.3% lower than the 16.9 million tonnes recorded in 2024.
On the Indian market, Ahmad Parveez said demand remained particularly strong in the food services, household, and food manufacturing sectors.
However, there are certain challenges, and one of them is India's import tax.
'A key concern is India's import policy, particularly the frequent adjustments to import duties.
'The recent hike in effective duties on crude palm oil to 27.5% and on refined palmolein to 35.75%, has significantly narrowed palm oil's natural price advantage compared to soft oils such as soybean and sunflower,' Ahmad Parveez pointed out.
'While we acknowledge India's policy objective to strengthen domestic oilseed production under the National Mission on Edible Oils-Oil Palm, such measures have made palm oil imports increasingly cost-sensitive and less predictable,' he added.
The price premium of palm oil, along with ample global soybean oil supplies, has led to a drop in palm oil's share in India's vegetable oil imports to 46% this year from 59% in 2023, MPOC chief executive officer Belvinder Sron said at the same New Delhi industry conference.
However, Malaysia's share in Indian palm oil imports reached 35% in the first half of this year compared with 30% in 2023, Sron said in her presentation. —Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
a few seconds ago
- The Star
Ringgit opens flat against US dollar, higher versus other majors
KUALA LUMPUR: The ringgit opened flat against the US dollar but rose against other major currencies, with investors still weighing the outcome of the Federal Open Market Committee (FOMC) meeting and Washington's reciprocal tariff measures, which take effect today. At 8 am, the local note stood at 4.2650/2850 against the US dollar, almost unchanged from Thursday's close of 4.2650/2730. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the newly announced tariff will likely support the ringgit and lift investor sentiment. Earlier, the United States announced a reduced tariff of 19 per cent on Malaysian imports, effective Aug 1, 2025. On July 7, US President Donald Trump said Washington would impose a 25 per cent tariff on all Malaysian products entering the country, separate from existing sectoral tariffs. The new rate, effective today, is one percentage point higher than the 24 per cent announced in April. Mohd Afzanizam noted that the US Dollar Index (DXY) continued to rise, gaining 0.15 per cent to reach 99.968 points, supported by the tariff decision and a stronger-than-expected Personal Consumption Expenditures (PCE) price index, which climbed to 2.6 per cent in June. He said the data suggested inflationary risks remained and could prompt the Federal Reserve (Fed) to keep the Fed Funds Rate unchanged at its September meeting. "Against such a backdrop, the ringgit is expected to stay soft, possibly around RM4.26. Yesterday, the ringgit weakened by 0.61 per cent to close at RM4.2690. "It appears that, following the FOMC meeting, the US dollar gained traction as the Fed remains committed to its restrictive policy stance to contain inflation risks,' he added. At the opening, the ringgit was higher against other major currencies. It strengthened against the Japanese yen to 2.8277/8411 from 2.8443/8498 on Thursday, rose against the British pound to 5.6328/6592 from 5.6426/6532, and gained against the euro to 4.8711/8939 from 4.8766/8857. The ringgit was mixed against regional peers. It was little changed against the Philippine peso at 7.31/7.35 from 7.31/7.33 and flat against the Indonesian rupiah at 259.1/260.5 from 259.1/259.7. The local note rose against the Thai baht to 13.0169/0876 from 13.0448/0753 and strengthened versus the Singapore dollar to 3.2856/3012 from 3.2889/2953. - Bernama
Daily Express
a few seconds ago
- Daily Express
Pan Borneo projects, energy transition prioritised
Published on: Friday, August 01, 2025 Published on: Fri, Aug 01, 2025 By: Bernama Text Size: Ahmad Zahid, who also chairs the National Disaster Management Committee, welcomed the government's long-term planning to strengthen disaster management and mitigation measures, particularly for natural disasters such as floods. Kuala Lumpur: The 13th Malaysia Plan (13MP) tabled by Prime Minister Datuk Seri Anwar Ibrahim in the Dewan Rakyat yesterday marks a major boost for Technical and Vocational Education and Training (TVET), the Bumiputera economic empowerment agenda and national disaster management, says Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi. He said the emphasis on aligning the minimum wage beyond existing prerequisites and the implementation of a premium wage scheme would add value to the education ecosystem and job marketability in the country. 'In addition, I am very grateful that the Bumiputera economic empowerment agenda, as outlined in PuTERA35 (Bumiputera Economic Transformation Plan 2035), has been incorporated into the 13MP, with 132 initiatives from the Bumiputera Economic Congress resolutions also included. 'Hopefully, this will benefit all levels of society in rural, suburban and urban areas, as well as our friends in Sabah and Sarawak,' he said. Ahmad Zahid, who also chairs the National Disaster Management Committee, welcomed the government's long-term planning to strengthen disaster management and mitigation measures, particularly for natural disasters such as floods. He said the tabling of the 13MP had come at a time when the nation was facing economic uncertainty and supply chain disruptions that were severely challenging competitiveness and public well-being. He added that the roadmap for 2026-2030 also focused on economic empowerment through value creation driven by digitalisation and advanced technologies such as artificial intelligence (AI), as well as an integrated approach towards sustainable and inclusive economic growth. Meanwhile, Deputy Prime Minister Datuk Seri Fadillah Yusof said the implementation of the 13MP must be carefully structured, taking into account a holistic approach that included all layers of society, development sectors, environmental sustainability, and a strong emphasis on good governance. He said this was vital to ensure Malaysia's competitiveness continued to be strengthened and that the country remained prominent on the global stage. 'If we look at what was presented earlier, there are nine main focus areas under the three pillars of the Madani Economy. The first is 'raising the ceiling,' which refers to transitioning towards an AI-based nation, high-growth, high-value industries, and strategic sectors that emphasise regional and rural development with global impact,' he said. 'The second pillar is strengthening governance and institutions by ensuring a public service that is transparent, swift and decisive. The third is 'raising the floor,' which focuses on addressing the cost of living, centring on Madani individuals as the social foundation, and improving the quality of life for the people,' he said. Fadillah, who is also the Minister of Energy Transition and Water Transformation (PETRA), said his ministry would focus on energy security, environmental sustainability and affordability of energy and water costs. He said the government had announced a new, more transparent and fair energy market approach, including the introduction of new tariffs and the 'time of use' concept to promote more prudent energy consumption. He added that the government would also conduct an in-depth study into the potential of nuclear technology as an energy source to complement existing sources such as solar, while continuing efforts to develop new sustainable energy sources. Fadillah said focus would also be given to Flood Mitigation Plan (RTB) projects in Johor, Perak, Pahang, Sarawak and Sabah to reduce flood risk and ensure water security. As for Sabah and Sarawak, he said the government would continue implementing the Pan Borneo and Trans Borneo highway projects to improve infrastructure connectivity and basic facilities in both states. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Borneo Post
a few seconds ago
- Borneo Post
US lowers tariff on Malaysia to 19 pct effective Aug 1
Trump said there would be no tariff if Malaysia, or Malaysian companies, chose to build or manufacture products within the US. — AFP photo KUALA LUMPUR (Aug 1): The United States (US) imposes a reduced 19 per cent tariff on Malaysian imports, effective today. On July 7, Washington announced it would impose a 25 per cent tariff on all Malaysian products entering the country, separate from sectoral tariffs, effective Aug 1 this year – one percentage point higher than what was announced in April. US President Donald Trump said there would be no tariff if Malaysia, or Malaysian companies, chose to build or manufacture products within the US. Since April, Malaysia has been negotiating the tariff with Washington, aiming to reduce the earlier 24 per cent rate. The latest round of talks was held on June 18 this year. — Bernama donald trump lead US tariff
