India’s push for self-reliance in edible oils not a threat, says Malaysia
Business Line (10/08/2025) - Malaysia does not see India’s ambitious push for self-reliance in edible oils through the National Mission on Edible Oils – Oil Palm (NMEO-OP) as a threat but as a strategic opportunity. The Malaysian Palm Oil Council (MPOC) has welcomed the initiative as a forward-looking step to boost India’s edible oil security, while reaffirming the role of Malaysia, the world’s second-largest producer of palm oil, as a key and long-term supplier.
Despite India’s efforts to promote domestic oil palm cultivation, Malaysian palm oil continues to play a vital role in the Indian market, which sourced 3 million tonnes (mt) of palm oil from Malaysia in 2024. With palm oil accounting for 34.2 per cent of India’s total edible oil consumption, the Malaysian supply remains critical to sectors such as food processing, retail, and hospitality.
MPOC said given the long gestation period for domestic oil palm cultivation, India will continue to rely on imports in the near to medium term. “Rather than seeing NMEO-OP as competition, we view it as an opportunity to strengthen bilateral cooperation,” said Belvinder Sron, CEO of MPOC, in an email interview, adding that Malaysian palm oil’s affordability, quality, and stable supply continue to support India’s growth trajectory.
In response to European Union’s tightening environmental regulations, such as the Renewable Energy Directive (RED) and the Deforestation Regulation (EUDR), Malaysia is intensifying efforts to diversify its export markets. While the EU remains an important trading partner, MPOC has identified India as a central pillar in its diversification strategy, thanks to consistent demand and expanding industrial usage.
Beyond India
Beyond India, Malaysia is also focusing on emerging and high-growth regions such as ASEAN, Africa, and the Middle East to reduce its dependence on any single market. “We’re targeting countries that understand the economic and nutritional value of palm oil and are aligned with equitable development,” Sron said. In 2024, Egypt ranked as the second-largest importer of Malaysian palm oil among MENA countries, with import volume reaching 498,000 tonnes. This accounted for three per cent of Malaysia’s total palm oil exports, valued at MYR (Malaysian ringgit) 2.1 billion.
Across the MENA region, Malaysia exported a total of 2.65 million tonnes of palm oil in 2024, underscoring Malaysia’s strong and growing presence in this strategically important market. “Malaysian palm oil exports to the Middle East was up 6.5 per cent in the first five months of 2025, reaching 833,000 tonnes. Full-year exports are projected to hit between 2 and 2.1 million tonnes,” she said.
US tariffs impact
On the impact of the 25 per cent reciprocal tariff imposed by the US under the Trump administration, MPOC downplayed concerns. Despite the cost implications for US buyers, particularly in sectors like confectionery and personal care, exports of Malaysian palm oil to the US surged 63 per cent to 191,000 tonnes in 2024. The trend continued into 2025, with exports in January-May up 52 per cent year-on-year to 93,500 tonnes.
MPOC attributed this to the industry’s adaptability and the enduring demand for palm oil in industrial applications. In East Africa, Malaysia is deepening its partnership with Kenya, which imported over 1.26 million tonnes of Malaysian palm oil in 2024. A recent visit by Malaysia’s Minister of Plantation and Commodities paved the way for expanded cooperation in oil palm cultivation. Malaysia is offering technical expertise, quality planting material and support for setting up a palm oil processing facility in Mombasa to cater to regional markets.
As part of its Asia expansion strategy, Malaysia is also turning to Western China, where a trade mission in May 2025 led to an MoU with logistics provider New Land-Sea Corridor Operation Co Ltd. The collaboration aims to streamline palm oil movement through the Qinzhou–Chongqing corridor, improving supply chain efficiency. “Western China offers significant potential in both traditional sectors like food manufacturing and emerging areas such as personal care, oleochemicals, and bio-materials. With China importing nearly 1.4 million tonnes of Malaysian palm oil in 2024, the initiative is expected to bolster innovation and deepen bilateral trade ties,” she said.