India’s Duty Hike On Palm Oil Temporary, Says Malaysia

Kuala Lumpur: Malaysia’s Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani on Tuesday termed India’s recent hike in palm oil import duty as a “temporary aberration”, saying demand for the commodity remains steady. Ghani dismissed speculation about arrangements between Malaysia and India for palm oil supplies in exchange for fighter aircraft transfers. India, the world’s largest edible oil importer, raised import duties on palm oil and other edible oils on September 14, 2023, increasing the effective duty on crude palm oil from 5.5 per cent to 12.7 per cent and on refined oils from 13.75 per cent to 35.75 per cent. “Any kind of aberration, for me, it is just temporary,” Ghani said responding to a query during a press conference on the sidelines of the Malaysia Palm Oil Forum.

The recent tariff policy changes by India will not create any “issue”, he added. The minister emphasised that India, with its population of 1.4 billion, has various options for edible oils, including palm, sunflower, and soybean oils. “We will continue to be a good partner with India and continue to supply sustainable palm oils,” he said. Malaysia has offered to support India’s domestic palm oil cultivation. During his recent India visit, Ghani met Agriculture Minister Shivraj Singh Chouhan and offered help the country with seeds and technology. On why Malaysia would support India’s palm oil cultivation despite its own palm oil-dependent economy, Ghani cited the “special” bilateral relationship.