Palm oil price expected to strengthen following Indias resumption of imports
0 month ago, 21-May-2020
Palm oil prices in the market are expected to strengthen following Indias move to resume importing Malaysian palm oil, said Minister of Plantation Industries and Commodities Datuk Dr Mohd Khairuddin Aman Razali. File photo
KUALA LUMPUR: Palm oil prices in the market are expected to strengthen following Indias move to resume importing Malaysian palm oil, said Minister of Plantation Industries and Commodities Datuk Dr Mohd Khairuddin Aman Razali.
He said the Indian governments move to discontinue its import sanctionon refined palm oil and the Malaysian governments willingness to close the trade gap helped to boost palm oil imports by the country.
Diplomatic relations has improved with contracts for palm oil purchasesforJune and July 2020, and this is expected to have a positive impact on the nations oil palm industry as well as the economy,Mohd Khairuddin said in a statement today.
He added that the Malaysian government is committed to maintaining good relations with the Indian government to further enhance diplomatic and trade relations between the two countries.
According totheMalaysian Palm Oil Boards data, Malaysias palm oil export to India between January and April 2020plummeted by 94 per cent to 96,145 tonnes, compared to 1.6 million tonnes in the same period last year.
India is one of Malaysia’s most important trading partners in the agricultural sector.
In 2019, the country imported 4.5 million tonnes of palm oil andpalm oil-based products, worthRM9.8 billion.
Meanwhile, Mohd Khairuddin said another factor whichcontributedto the increase in imports is the fact thatthe crude palm oils market price has fallen below the treshold for Malaysias export duties.
The nations oil palm industry provides incomes for close to 500,000 smallholders, including around 258,000 independent smallholders. – Bernama
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