Malaysian Palm Oil Export to South Asia Region
(January-June 2023)
A Review on MPO Export Performance
Table 1: A Review on MPO Export Performance (MT)
| No. | Country | Jan-Jun 2023 | Jan-Jun 2022 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|---|
| 1. | India | 1,227,712 | 1,393,604 | (165,892) | (11.90) |
| 2. | Pakistan | 224,909 | 237,582 | (12,673) | (5.33) |
| 3. | Bangladesh | 129,031 | 133,023 | (3,992) | (3.00) |
| 4. | Afghanistan | 90,597 | 56,935 | 33,663 | 59.13 |
| 5. | Sri Lanka | 17,594 | 13,731 | 3,863 | 28.14 |
| 6. | Nepal | 4,228 | 209.88 | 4,018 | 1914.26 |
| 7. | Maldives | 1,773 | 2,983 | (1,211) | (40.58) |
| Grand Total | 1,695,843 | 1,838,068 | (142,225) | (7.74) |
Source: MPOB
From Jan-Jun 2023, MPO exports to the South Asian region registered a total of 1,695,843 MT against 1,838,068 MT which was registered during the same period of last year, a decrease of 142,225 MT or by 7.74%. India holds the biggest market share of 72% as the largest importer of MPO in this 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. Additionally, the easing of export ratio to domestic supply under the ‘Domestic Market Obligation’ in June following the end of the Ramadan month and Eid festival in April, also likely to have boosted palm oil intake from Indonesia.
Table 2: MPO Exports to India by Type of Products (MT)
| TYPE OF PRODUCTS | Jan-Jun 2023 | Jan-Jun 2022 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|
| CPO | 997,123 | 1,052,871 | (55,748) | (5.29) |
| RBD PL | 142,036 | 248,589 | (106,554) | (42.86) |
| PFAD | 33,193 | 37,540 | (4,348) | (11.58) |
| RBD PS | 30,741 | 25,926 | 4,814 | 18.57 |
| CPO FOR RSPO AND ISCC | 16,454 | 15,699 | 754 | 4.80 |
| PAO | 4,458 | 4,240 | 217 | 5.12 |
| CPL | 749 | 5,749 | (5,000) | (86.97) |
| OTHERS | 2,959 | 2,988 | (29) | (0.98) |
| TOTAL | 1,227,712 | 1,393,604 | (165,892) | (11.90) |
Source: MPOB
MPO exports to India during Jan-Jun 2023 decreased by 11.90% from 1,393,604 MT to 1,227,712 MT mainly contributed by the easing of Indonesian export policy. During the first half of 2023, palm oil imports from Indonesia and Thailand has increased by 62% and 25% respectively, which reduced the imports from Malaysia.
During the period of between Jan-Jun 2023, imports of soft oil increased by 20 to 3.50 million MT compared to 2.90 MMT imported same period last year. This was contributed by an increase in sunflower oil imports as suppliers offered attractive discounted prices compared to other oils. Sunflower oil imports during this period increased by nearly 56% to 1.5 million MT whereas soybean oil imports increased marginally to 2.0 million MT from 1.94 million MT during the same period last year.
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-Jun 2023 | Jan-Jun 2022 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|
| CO | 92,677 | 81,003 | 11,674 | 14.41 |
| RBD PL | 77,546 | 106,385 | (28,839) | (27.11) |
| CPO | 35,004 | 17,000 | 18,004 | 105.91 |
| RBD PO | 11,683 | 27,221 | (15,538) | (57.08) |
| PAO | 2,693 | 2,943 | (249) | (8.48) |
| OTHERS | 5,307 | 3,031 | 2,276 | 75.08 |
| TOTAL | 224,909 | 237,582 | (12,673) | (5.33) |
Source: MPOB
MPO exports to Pakistan during Jan-Jun 2023 showed a slight recovery although the total volume still went down to 224,909 MT from 237,582 MT recorded during the same corresponding period of last year. 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-Jun 2023 | Jan-Jun 2022 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|
| RBD PL | 122,069 | 119,078 | 2,991 | 2.51 |
| PFAD | 2,991 | 1,360 | 1,632 | 120.00 |
| RBDPL FOR RSPO FROM SEGREGATED | 1,216 | 1,217 | (1) | (0.05) |
| RBD PS | 1,045 | 1,498 | (454) | (30.28) |
| CO | 695 | 1,329 | (634) | (47.70) |
| RBD PO | 56 | 8,061 | (8,004) | (99.30) |
| OTHERS | 958 | 480 | 478 | 99.50 |
| TOTAL | 129,031 | 133,023 | (3,992) | (3.00) |
Source: MPOB
MPO exports to Bangladesh recorded a slight decrease during Jan-Jun 2023 period from 133,023 MT to 129,031 MT during the same corresponding period of last year. Exports of PFAD and RBD palm olein went up by 120% and 2.51% respectively. Lower exports of RBD palm stearin and cooking oil were recorded by 30.28% and 47.70% respectively. Bangladesh has also increased their purchases from Indonesia as its import of RBD palm stearin showed an increase by 18.4% based on local data.
Table 5: Breakdown of MPO Exports (MT)
| PRODUCTS | Jan-Jun 2023 | Jan-Jun 2022 | Diff (Vol) | Diff (%) |
|---|---|---|---|---|
| CPO | 1,032,127 | 1,069,870 | (37,743) | (3.53) |
| RBD PL | 344,032 | 477,884 | (133,852) | (28.01) |
| CO | 186,582 | 141,948 | 44,634 | 31.44 |
| PFAD | 36,700 | 38,900 | (2,200) | (5.66) |
| RBD PS | 36,182 | 28,453 | 7,729 | 27.16 |
| CPL | 18,327 | 16,251 | 2,076 | 12.77 |
| CPO FOR RSPO AND ISCC | 16,454 | 15,699 | 755 | 4.81 |
| PAO | 7,244 | 7,183 | 61 | 0.85 |
| RBD PO | 13,574 | 36,817 | (23,243) | (63.13) |
| OTHERS | 4,621 | 5,063 | (443) | (8.74) |
| TOTAL | 1,695,843 | 1,838,068 | (142,225) | (7.74) |
Source: MPOB
In terms of breakdown, the biggest product being exported to the region during Jan-Jun 2023 period is crude palm oil (CPO) accounting for 61% of overall palm oil imports followed by RBD palm olein (RBD PL) with 20%. These two palm oil products accounted for 81% 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. Cooking oil exports have also increased from 141,948 MT to 186,582 MT with major destinations include Pakistan and Afghanistan.
Chart 1: Breakdown of MPO Exports (MT): Jan-June 2023
Source: MPOB
For more info please contact Mrs Azriyah Email : azriyah@mpoc.org.my
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