Malaysia, which sells nearly one-fourth of its total palm oil exports to India alone, is confident that the demand in the south Asian country will continue to be robust and both the countries can benefit from a friendly trade relations ensuring food security for the people.

Visiting Malaysian Plantation and Commodities Minister Seri Johari Abdul Ghani said on Thursday that his country would like to have an understanding with India to ensure import of commodities such as rice and sugar and at the same time export palm oil and such an arrangement should continue even if there are restrictions.

Though he wished there should be an agreement, Johari felt that without that also it can happen as happening now in case of rice. Malaysia has been importing non-Basmati rice from India through diplomatic channels. But Johari made it clear that Malaysia does not favour “any barter” system and said it should be based on open market prices. Farmers will be dissatisfied if they do not get market rates in case there is a surge, he said.

Support to Atmanirbhar

Out of Malaysia’s 14.8 million tonnes (mt) of palm oil exports in 2023 (January-December), about 3.7 mt was bought by India. Malaysia expects a marginal increase of palm oil export to 15 mt in 2024 and same level of shipments to India as it had last year.

Earlier in the day, Johari met India’s Agriculture Minister Shivraj Singh Chouhan and offered Malaysia’s support to India’s efforts to become “Atmanirbhar” in its edible oil security goals. India has already launched the Oil Palm Mission and will soon announce the Oilseeds Mission to attain self-sufficiency.

“Malaysia stands ready to provide invaluable support, encouraging the growth of oil palm cultivation. India’s importance to Malaysia’s oil palm sector cannot be understated. This partnership will also meaningfully contribute towards achieving global food security needs and sustainability goals,” Johari said in a statement.

Globally, oil palm trees occupy less than 8 per cent of the total land area dedicated to all crops, yet they contribute 32 per cent to major seed oil production, according to an official statement. Amid mounting global concerns about climate change and deforestation, palm oil is uniquely positioned to efficiently meet the rising global demand for edible oils, it said.

Commitment to sustainability

Johari also said Malaysia is deeply committed to sustainable palm oil production, adhering to stringent environmental standards and sustainable practices. He said his country has already decided that after 2020 there will be no deforestation and no additional land will be added to existing area of 5.7 million hectares under oil palm plantation.

The per capita consumption of oils and fats in India has risen from 15.8 kg to 19 kg in the last decade, whereas global consumption is 30 kg/per person. This increase represents an additional consumption of 7.34 mt in India and this trend is set to continue as its economy continues to grow.

Johari declined to comment on repatriation of Zakir Naik, the controversial India preacher staying in Malaysia.

Related Topics