Malaysian Palm Oil Export to South Asia Region
(January-July 2023)
A Review on MPO Export Performance
Table 1: A Review on MPO Export Performance (MT)
| No. | Country | Jan-Jul 2023 | Jan-Jul 2022 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|---|
| 1. | India | 1,576,420 | 1,651,464 | (75,044) | (4.54) |
| 2. | Pakistan | 277,577 | 273,351 | 4,225 | 1.55 |
| 3. | Bangladesh | 142,400 | 148,991 | (6,591) | (4.42) |
| 4. | Afghanistan | 114,448 | 79,255 | 35,193 | 44.41 |
| 5. | Sri Lanka | 18,881 | 14,433 | 4,448 | 30.81 |
| 6. | Nepal | 4,708 | 762 | 3,945 | 517.47 |
| 7. | Maldives | 2,302 | 3,098 | (796) | (25.70) |
| Grand Total | 2,136,734 | 2,171,354 | (34,620) | (1.59) |
Source: MPOB
From Jan-Jul 2023, MPO exports to the South Asian region registered a total of 2.14 million MT against 2.17 million MT registered during the same period of last year. This represents a slight decrease of 34,620 MT or by 1.59%. The decline was mainly attributed to lower imports by India which fell by 75,044 MT or by 4.54% and since India holds the biggest market share of 74% as the largest importer of MPO in this region, it impacted the import volume for the whole region.
The decrease in MPO exports to this region during this period is due to higher CPO imports from Indonesia by India after the marginal reduction of Indonesian CPO reference price in June. CPO levy and taxes fell to USD 68 from previously USD 118 in the first half of June and from an even higher rate of USD 224 and USD 169 in the first and second half of May respectively.
Table 2: MPO Exports to India by Type of Products (MT)
| TYPE OF PRODUCTS | Jan-Jul 2023 | Jan-Jul 2022 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|
| Crude Palm Oil | 1,322,714 | 1,296,289 | 26,425 | 2.04 |
| RBD Palm Olein | 152,453 | 256,751 | (104,298) | (40.62) |
| RBD Palm Stearin | 38,822 | 26,262 | 12,559 | 47.82 |
| Palm Fatty Acid Distillate | 34,717 | 41,581 | (6,864) | (16.51) |
| CPO For Rspo And Iscc | 16,454 | 15,699 | 754 | 4.80 |
| Palm Acid Oil | 4,883 | 4,613 | 270 | 5.86 |
| RBD Palm Oil | 1,549 | 2,120 | (571) | (26.93) |
| Others | 4,828.79 | 8,148.42 | (3,320) | (40.74) |
| TOTAL | 1,576,420 | 1,651,464 | (75,044) | (4.54) |
Source: MPOB
It is estimated that the imports of vegetable oil in July 2023 would marginally decline by 2-5% M-o-M to 1.25 – 1.3 million MT owing to higher port stocks by end of June 2023. Soft oil imports would decline amid widened price spread between palm and soft oils and higher stocks at the destination. Palm oil imports would show an increase towards 750,000–800,000 MT with supportive price spreads and improvement in demand due to the upcoming festive season at India.
Table 3: MPO Exports to Pakistan by Type of Products (MT)
| TYPE OF PRODUCTS | Jan-Jul 2023 | Jan-Jul 2022 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|
| Cooking Oil | 122,357 | 103,973 | 18,384 | 17.68 |
| RBD Palm Olein | 83,554 | 107,586 | (24,032) | (22.34) |
| Crude Palm Oil | 41,004 | 26,999 | 14,004 | 51.87 |
| RBD Palm Oil | 19,907 | 27,243 | (7,337) | (26.93) |
| RBD Palm Stearin | 5,399 | 1,018 | 4,381 | 430.46 |
| Others | 5,356 | 6,531 | (1,175) | (17.99) |
| Grand Total | 277,577 | 273,351 | 4,225 | 1.55 |
Source: MPOB
MPO exports to Pakistan during Jan-Jul 2023 showed a slight recovery from 273,351 MT recorded in the same period of 2022 to 277,577 The exports of cooking oil remained stable and there has been an increase in the exports of CPO from Malaysia to Pakistan. Higher intake of palm oil from Indonesia is the main factor of the decrease in the exports of MPO to Pakistan as the Indonesian suppliers are able to offer greater discounts. The expected import in the month of July is anticipated to be around 330,000 MT out of which approximately 300,000 MT is palm oil and rest is soybean oil.
Table 4: MPO Exports to Bangladesh by Type of Products (MT)
| TYPE OF PRODUCTS | Jan-Jul 2023 | Jan-Jul 2022 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|
| RBD Palm Olein | 134,686 | 134,146 | 540 | 0.40 |
| Palm Fatty Acid Distillate | 3,173 | 1,450 | 1,722 | 118.75 |
| RBDPL For RSPO From Segregated | 1,614 | 1,468 | 146 | 9.91 |
| RBD Palm Stearin | 1,045 | 1,604 | (559) | (34.86) |
| Palm Mid-Fraction / RBD Palm Mid-Fraction / Soft Palm Stearin | 922 | 531 | 390 | 73.50 |
| Cooking Oil | 780 | 1,673 | (893) | (53.35) |
| Others | 180 | 8,117 | (7,937) | (97.78) |
| Grand Total | 142,400 | 148,991 | (6,591) | (4.42) |
Source: MPOB
Table 5: Breakdown of MPO Exports (MT)
| PRODUCTS | Jan-Jul 2023 | Jan-Jul 2022 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|
| Crude Palm Oil | 1,363,718 | 1,323,288 | 40,429 | 3.06 |
| RBD Palm Olein | 373,833 | 503,147 | (129,314) | (25.70) |
| Cooking Oil | 240,986 | 188,051 | 52,935 | 28.15 |
| RBD Palm Stearin | 45,308 | 28,894 | 16,414 | 56.81 |
| Palm Fatty Acid Distillate | 38,448 | 43,317 | (4,870) | (11.24) |
| RBD Palm Oil | 22,472 | 37,659 | (15,186) | (40.33) |
| Crude Palm Olein | 18,629 | 16,251 | 2,378 | 14.64 |
| CPO for RSPO From Mass Balance | 10,001 | 14,700 | (4,699) | (31.97) |
| Palm Acid Oil | 8,992 | 8,568 | 424 | 4.95 |
| Others | 14,347 | 7,479 | 6,868 | 91.83 |
| Grand Total | 2,136,734 | 2,171,354 | (34,620) | (1.59) |
Source: MPOB
In terms of breakdown, the biggest product being exported to the region during Jan-Jul 2023 period is crude palm oil (CPO) accounting for 63.5% of overall palm oil imports followed by RBD palm olein (RBD PL) with 17.5%. These two palm oil products accounted for 82% of the total MPO exports to this region. Among the major importers of Malaysian CPO are India and Pakistan and major destinations for Malaysian RBD PL are India, Pakistan and Bangladesh.
Chart 1: Breakdown of MPO Exports (MT): Jan-Jul 2023
Source: MPOB
For more info please contact Mrs Azriyah Email : azriyah@mpoc.org.my
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