Malaysia’s Plantation and Commodities Minister, Datuk Seri Johari Abdul Ghani, addressed concerns on Tuesday regarding India’s recent hike in palm oil import duties, describing the move as a ‘temporary aberration.’ He assured that the demand for the commodity remains robust despite these changes.
During a press conference at the Malaysia Palm Oil Forum, in response to a query from PTI, Ghani clarified there were no ongoing negotiations concerning palm oil supplies in exchange for fighter aircraft transfers between Malaysia and India.
On September 14, 2023, India, the world’s largest importer of edible oils, revised its import duties, increasing the tariff on crude palm oil from 5.5% to 12.7% and on refined oils from 13.75% to 35.75%. Ghani emphasized that these adjustments would not pose a long-term issue for Malaysia-India trade relations.
India’s diverse population of 1.4 billion has several alternatives for edible oils, including sunflower and soybean oils, in addition to palm oil. “We will continue to be a good partner with India and continue to supply sustainable palm oils,” Ghani commented, highlighting the enduring trade relationship.
Further fostering cooperation, Malaysia has extended support to aid India’s domestic palm oil cultivation efforts. During a recent visit to India, Ghani met with Indian Agriculture Minister Shivraj Singh Chouhan to offer assistance with seeds and technology for enhancing local production.
When asked about the rationale behind supporting another nation’s agricultural sector that competes with its own, Ghani pointed to the ‘special’ bilateral ties between the countries, noting that Malaysia also relies on imports of essential Indian commodities such as rice, onion, and sugar.
With Malaysian palm oil production hitting 12.6 million tonnes this year and projected to reach 19 million tonnes—the highest since 2020—Ghani remains optimistic about the industry’s growth and the mutual benefits of fair global trade practices.
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