Top Buyer India to Favor Malaysian Palm Oil as Indonesian Prices Increase

India is likely to buy more Malaysian palm oil after export levies imposed by top producer Indonesia hit record highs in the past year, India’s Solvent Extractors’ Association executive director BV Mehta said last week on December 02 at the annual Indonesian Palm Oil Conference.  

Indonesia imposed higher export taxes and levies in the past year, making prices of palm oil, which already reached record highs this year, more costly for the top buyer.  “Indonesia’s share of palm oil imports by India earlier was nearly 70%-75%,” Mehta said. “Heavy export duties and levies being imposed by Indonesia are discouraging Indian refiners to buy from Indonesia,” adding that in January to September this year, Indonesia’s share of Indian palm oil imports dropped to 55%, while Malaysia’s jumped 45%.

On the other hand, Abdul Rasheed Janmohammed, chairman of Pakistan Edible Oil Refiners Association, said at the conference that Indonesia will likely remain top supplier of palm oil to Pakistan. He also noted that Indian buyers are more dependent on crude palm oil imports, while Pakistan imports more refined products with cheaper export duties.