India’s middle-class growth fuelling Malaysia’s palm oil exports, says Johari
18/07/2024 (Free Malaysia Today), New Delhi - Malaysia’s palm oil exports to India will continue to rise in line with the growth of India’s middle-class consumer base, says plantation and commodities minister Johari Ghani.
Last year, Johari said Malaysia’s exports of palm oil and palm oil products to India totalled 3.3 million tonnes, valued at US$3 billion (RM14 billion), or 13% of Malaysia’s total palm oil exports.
“Moving forward, I would like to reaffirm Malaysia’s commitment to being India’s trusted source of high-quality palm oil, Johari said in a keynote speech at a conference organised by the Indian Vegetable Oil Producers’ Association here today.
We are dedicated to supporting India’s food security needs and fostering a stable, enduring partnership that meets the evolving demands of this important market,” he said.
The minister added that India’s consumption of oils and fats was about 27.2 million tonnes in 2023, with palm oil comprising 36%. India is witnessing a higher demand for palm oil in its food and non-food sectors.
Johari said over the past decade, India’s per capita consumption of oils and fats rose from 15.8kg to 19kg. This growth trend is expected to continue, fuelled by an expanding middle class, he said.
“It (the middle class) now represents 31% of the population and is expected to reach 38% by 2031 and 60% in 2047,” he added.
Palm oil industry players attending the event underscored the need to strengthen collaboration between Malaysia and India’s vegetable oil companies.
Malaysia, the world’s second-largest producer of palm oil, exported more than 80% of the 18.6 million tonnes it produced in 2023.