Palm oil exports set to decline as India buys less

PETALING JAYA: Malaysia’s biggest palm oil buyer is likely to reduce its purchase over the next few months, a move that is expected to hit local palm oil exporters beginning this month.India, which accounted for nearly 33% of Malaysia’s palm oil exports in August 2019, recently upped the import tax on Malaysia’s refined palm oil from 45% to 50% for a period of six months.

With the higher tax rate, Malaysia will lose its preferential tariff treatment and India’s demand for palm oil will partly switch to Indonesian exports, according to Maybank IB Research.