Kuala lumpur: The Malaysian Palm Oil Board (MPOB) anticipates a recovery in palm oil exports in the second half of 2025, driven by increased demand during the festive season in major markets.

According to BERNAMA News Agency, MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir highlighted the demand surge, particularly from India, as a significant factor. This demand is attributed to the need to replenish stocks for the festive season, attractive palm oil pricing, and a reduction in import duties on crude vegetable oils. Ahmad Parveez shared these insights during a conference in New Delhi, organized by the Indian Vegetable Oil Producers’ Association (IVPA).

MPOB’s data indicates that Malaysian palm oil and palm-based product exports experienced a 7.4 per cent decline in the first half of 2025, totaling 11.39 million tonnes compared to the same period last year. Specifically, palm oil exports were at 6.95 million tonnes, representing a 7.7 per cent drop compared to the first half of 2024, with reduced demand from countries like India, China, the European Union, Bangladesh, and Egypt.

Despite this decline, Malaysia achieved growth in palm oil export volumes to the Philippines, Iran, Kenya, and Nigeria. Ahmad Parveez noted that although export tonnage decreased, Malaysia’s earnings from palm oil and palm products rose by 9.3 per cent to RM53.43 billion during the January-June 2025 period, compared to the same timeframe last year. Palm oil export values reached nearly RM34 billion.

The geographical reach of Malaysian palm oil has expanded in recent years. However, full-year palm oil export volumes for 2025 are projected to be 5.3 per cent lower than the 16.9 million tonnes recorded in 2024.

Focusing on India, Ahmad Parveez stated that demand remains robust in the food services, household, and food manufacturing sectors. Nevertheless, challenges persist, particularly concerning India’s import tax policies. He expressed concerns over the frequent adjustments to import duties. The recent increase in effective duties on crude palm oil to 27.5 per cent and on refined palmolein to 35.75 per cent has diminished palm oil’s natural price advantage compared to soft oils like soybean and sunflower.

While acknowledging India’s aim to boost domestic oilseed production through the National Mission on Edible Oils-Oil Palm, Ahmad Parveez emphasized that these measures have made palm oil imports more cost-sensitive and unpredictable. Malaysian Palm Oil Council (MPOC) CEO Belvinder Sron added that the price premium of palm oil and ample global soybean oil supplies have reduced palm oil’s share in India’s vegetable oil imports to 46 per cent this year, down from 59 per cent in 2023. Nevertheless, Malaysia’s share in Indian palm oil imports increased to 35 per cent in the first half of this year, compared to 30 per cent in 2023, as Sron noted in her presentation.