Malaysia Confident Amid Rising India Palm Oil Import Duties

Palm Oil Magazine
Malaysia Confident Amid Rising India Palm Oil Import Duties. Photo by: Palm Oil Magazine

PALMOILMAGAZINE, KUALA LUMPUR – The increase in India’s import duties on palm oil presents a temporary challenge to Malaysia’s export competitiveness. However, the Malaysian Ministry of Plantation and Commodities remains confident in the sector’s resilience in adapting to these policy changes.

The ministry noted that the revised tariffs, referred to as effective import duties, have raised taxes on crude palm oil (CPO) from 5.5% to 27.5% and on refined palm oil from 13.75% to 35.75%. The policy aims to regulate India’s domestic supply while protecting its processing industry.

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“This tariff adjustment is a temporary challenge that will be addressed through various strategies to maintain the competitiveness and sustainability of Malaysia’s palm oil exports,” a ministry spokesperson stated, as reported by Palmoilmagazine.com from the Malaysian Palm Oil Council (MPOC) website on Sunday, December 29, 2024.

Also Read: Indonesia’s CPO Reference Price Drops 1.13% in January 2025

Despite the tariff changes, Malaysia’s palm oil exports to India recorded significant growth. From January to October 2024, export volumes increased by 16.4%, reaching 2.67 million tons compared to the same period in the previous year.

This growth reflects stable demand from the Indian market, even amid tariff barriers. “The data underscores India’s confidence in the quality of Malaysian palm oil and the strategic importance of trade relations between the two nations,” the ministry added.

To mitigate the impact of India’s policy, Malaysia plans to enhance promotional efforts and diversify its export markets. Additionally, it will continue strengthening sustainability standards, such as the Malaysian Sustainable Palm Oil (MSPO) certification scheme, to attract more international buyers.

Amid global challenges, Malaysia’s palm oil sector remains a cornerstone of the national economy. The government is optimistic about fostering stronger partnerships with key countries like India to develop mutually beneficial solutions.

The rise in tariffs is seen not as a long-term obstacle but as an opportunity to enhance the global competitiveness of Malaysian palm oil. (P2)

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