SOUTH ASIA REGION
Malaysian Palm Oil Export to South Asia Region
January 2024
Regional Summary
South Asia region accounted for 15% of the total Malaysian palm oil exported in January 2024. Palm oil assumed an important composition of Malaysian palm oil palm products exported to the region with market share 87% or 276,077 MT of the total Malaysian palm oil and products exported worldwide, followed by palm-based oleochemical (8%), palm kernel oil (4%) and finished products (1%).
| Table 1: Malaysian Palm Oil and Palm Product Export to South Asia | ||||
|---|---|---|---|---|
| Products | Jan 2024 | Jan 2023 | Change (MT) | Change (%) |
| Palm Oil | 276,077 | 255,218 | 20,858 | 8.17 |
| Palm-Based Oleo | 24,669 | 19,517 | 5,152 | 26.40 |
| Palm Kernel Oil | 12,809 | 9,138 | 3,671 | 40.18 |
| Finished Products | 3,798 | 2,911 | 887 | 30.45 |
| Palm Kernel Cake | 1,568 | 55,000 | (53,432) | (97.15) |
| Other Palm Products | 220 | 181 | 39 | 21.88 |
| Grand Total | 319,141 | 341,964 | (22,824) | (6.67) |
Featured Analysis
- India recorded a total of 1.19 million MT of edible oils imports in January 2024, a 9.2% decrease from the previous month. Imports of palm oil declined, reaching a three-month low, as refiners opted for rival soybean oil due to unfavourable refining margins for crude palm oil (CPO), according to information provided by major market participants.
- The data revealed a 12% decrease in palm oil imports, totalling 787,000 MT, with crude palm oil imports falling even further by 16% to 541,000 MT. This decline was attributed primarily to a significant reduction in CPO purchases, as refiners found refined bleached deodorized (RBD) palm olein more economically viable.
- The shift towards soybean oil was evident as its imports surged by 24% in January, reaching 190,000 MT, driven by competitive soybean oil prices compared to palm products, along with positive refining margins. However, this figure remains below the monthly average of 306,000 MT.
- Sunflower oil imports experienced a decline of 19% in January, to a total of 211,000 MT. This drop was attributed to increased costs resulting from higher freight rates following Houthi attacks on Red Sea shipping, according to industry sources.
- It is anticipated that there will be a significant rise in soybean oil imports in the coming months, given the decreased premium over palm oil and sunflower oil, making it more attractive.
- The reduced import volumes by India has also caused a decline in domestic vegetable oil stocks, hence Indian purchases could pick up in the upcoming months.
- Imports of vegetable oils are projected to increase for Pakistan and Bangladesh in anticipation for the upcoming Ramadan that will commence in March.
South Asia
During Jan 2024 period, MPO exports to the South Asian region registered a total of 276,077 MT against 255,218 MT which was registered during the same period of last year, an increase of 20,858 MT or by 8.17%. India holds the biggest market share of 69% as the largest importer of MPO in this region. Afghanistan remains the market with positive import growth, as cooking oil import continues to be on the upward trend from 16,943 MT to 23,709 MT.
|
Table 2: Malaysian Palm Export to South Asian Countries |
|||||
|
|
COUNTRY |
Jan 2024 |
Jan 2023 |
Diff (Vol) |
Diff (%) |
|
1 |
India |
191,587 |
186,082 |
5,506 |
2.96 |
|
2 |
Pakistan |
51,353 |
39,463 |
11,890 |
30.13 |
|
3 |
Afghanistan |
23,709 |
16,943 |
6,766 |
39.93 |
|
4 |
Bangladesh |
7,904 |
12,238 |
(4,334) |
(35.42) |
|
5 |
Sri Lanka |
620 |
9 |
611 |
6,785.22 |
|
6 |
Maldives |
492 |
346 |
147 |
42.41 |
|
7 |
Nepal |
412 |
137 |
274 |
199.50 |
|
|
Total |
276,077 |
255,218 |
20,858 |
8.17 |
Source: MPOB
In Jan 2024, MPO exports to India marginally increased by 2.96% and this could be attributed to notable decline in CPO purchase in the country reportedly due to unfavourable refining margins for CPO as compared to rival soybean oil which made refined bleached deodorized (RBD) palm olein more economically viable. MPO exports to Pakistan also went up by 30.13% likely due to lower edible oil stocks at ports and the upcoming Ramadan month. MPO exports to Afghanistan registered an increase of 39.93% as local importers are relying more on direct imports of palm oil and its finished products rather than importing from Pakistan. Meanwhile, MPO exports to Bangladesh registered a decrease of 35.42% reflecting the overall decline of palm oil imports into the country. This could be due to the shortage of foreign exchange and high domestic prices.
Regional Summary
South Asia region accounted for 15% of the total Malaysian palm oil exported in January 2024. Palm oil assumed an important composition of Malaysian palm oil palm products exported to the region with market share 87% or 276,077 MT of the total Malaysian palm oil and products exported worldwide, followed by palm-based oleochemical (8%), palm kernel oil (4%) and finished products (1%).
| Table 3: Break down of MPO into South Asia Market | ||||
|---|---|---|---|---|
| Jan 2024 | Jan 2023 | Diff (MT) |
Diff (%) |
|
| CPO | 158,767 | 161,559 | (2,792) | (1.73) |
| CO | 43,856 | 28,149 | 15,707 | 55.80 |
| RBD PL | 42,879 | 45,220 | (2,341) | (5.18) |
| CPL | 12,004 | 0 | 12,004 | – |
| RBD PO | 8,837 | 2,381 | 6,455 | 271.07 |
| RBD PS | 3,664 | 3,585 | 79 | 2.21 |
| PFAD | 3,453 | 6,644 | (3,190) | (48.02) |
| PAO | 1,283 | 927 | 356 | 38.39 |
| Others | 1,334 | 6,753 | (5,420) | (80.25) |
| Total | 276,077 | 255,218 | 20,858 | 8.17 |
For more info please contact
Mrs Azriyah Email : azriyah@mpoc.org.my
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