Palm Oil Steadies with India Imports Up, Indonesia Policy on Watch
04/02/2026 (Jakarta Globe), Jakarta - Palm oil prices steadied after recent volatility, with the benchmark contract trading at 4,236 ringgit ($1,078.57) a ton on Feb. 4, up 0.6% from the previous session, according to tradingeconomics.com. Prices have gained 5.6% over the past month but remain 2.2% lower than a year earlier, based on a contract-for-difference tracking the benchmark market.
Malaysian palm oil futures had slipped for a second straight session earlier in the week, falling below 4,200 ringgit a ton and hovering near their lowest level in a week as trading resumed after a public holiday. The market was pressured by declines in Dalian edible oils and a firmer ringgit, which tends to reduce export competitiveness.
Sentiment was also dampened by weak official purchasing managers’ index data from China, the world’s second-largest economy and a key consumer of vegetable oils.
Losses, however, were partially cushioned by stronger import demand from India, the world’s largest palm oil buyer. Shipments into the country surged 51% in January to a four-month high, as palm oil’s steep discount to rival soyoil encouraged refiners to step up purchases, according to trade data.
Supply-side developments in Southeast Asia remain supportive. Intertek Testing Services reported that Malaysian palm oil product exports rose 17.9% in January to 1.46 million metric tons from December. In Indonesia, the world’s top producer, exports of crude and refined palm oil climbed 9.1% last year to 23.61 million tons, the Central Statistics Agency (BPS) said.
Palm oil continues to be a major source of foreign exchange for Indonesia. Exports of crude palm oil and its derivatives totalled $24.42 billion in 2025, up nearly 22% from a year earlier, according to the Central Statistics Agency. December shipments alone reached 2.75 million tons, more than doubling from November and rising almost 67% from a year earlier.
However, President Prabowo Subianto has signalled a shift toward prioritizing palm oil for local use as part of his national agenda, which places energy self-sufficiency at its core. The government is ramping up production of palm-based biodiesel and aviation fuel, potentially tightening global supply.
Under the policy, crude palm oil and its by-products — including used cooking oil — are being directed toward domestic biofuel production, with exports facing tighter restrictions. While officials argue the strategy will reduce reliance on imported fuel and stabilize energy costs, industry players have warned that stagnant production growth could force a trade-off between exports and domestic mandates.
Oil Palm Plantations, Biodiversity Conservation Can Go Hand In Hand - MPOGCF
04/02/2026 (Bernama), Kuala Lumpur - The presence of oil palm plantations in Malaysia does not threaten orangutan populations, as the species has shown a clear ability to adapt and survive within plantation landscapes, according to Malaysian Palm Oil Green Conservation Foundation (MPOGCF) general manager Hairulazim Mahmud.
He said claims that oil palm cultivation destroys orangutan habitats have long been amplified by international non-governmental organisations (NGOs) through anti-palm oil
English type to start searching campaigns in Europe, negatively affecting the local and global palm oil industry.
However, Hairulazim said scientific studies paint a different picture, showing that orangutans in Malaysia not only use plantations as movement corridors but also build nests and forage for food in these areas.
“Beyond local studies, research by international NGOs such as HUTAN shows that orangutans in Sabah have begun assimilating into oil palm landscapes,” he told Bernama, citing drone and helicopter surveys that detected orangutan nests woven from palm fronds within plantations.
He said that similar patterns are seen with elephants, which often enter plantations during replanting seasons as palm shoots are a favoured food source and the scent of felled palms can be detected by elephants from distances of up to 18 kilometres.
Such encounters are usually managed with monitoring by plantation operators, he said, while conflicts are addressed through safe and ethical relocation methods guided by authorities, including MPOGCF.
The foundation also works with the London-based Earthworm Foundation to train smallholders in Johor to use drones to track elephant movements and mitigate conflicts.
Hairulazim said these examples demonstrate that biodiversity conservation and agricultural activities can coexist if properly managed.
He highlighted several MPOGCF conservation initiatives, including the Lower Kawag Orangutan Habitat Restoration Project in Sabah, which involves restoring 2,500 hectares of forest, planting native tree species and engaging local communities to improve livelihoods.
Other efforts include projects under the Central Forest Spine initiative in Kelantan to reconnect fragmented forests in Peninsular Malaysia, as well as wildlife corridors, satellite collaring of elephants, early warning systems for smallholders and biodiversity-friendly plantation practices.
While acknowledging that oil palm expansion in the 1980s involved deforestation, Hairulazim said such practices are no longer permitted, with Malaysia maintaining more than 50 per cent forest cover.
The industry is now governed by over 60 laws and regulations, including mandatory compliance with the Malaysian Sustainable Palm Oil (MSPO) certification.
He said MSPO certification is required for all smallholders, estates and mills exporting palm oil, ensuring production does not involve deforestation or threaten wildlife.
“To obtain this certificate, farmers must comply with strict conditions, including no more deforestation for oil palm plantations and preserving High Conservation Value (HCV) Areas so that biodiversity continues to be preserved,” he said, noting that MSPO is recognised by the European Union (EU) as it is in line with the European Union Deforestation Regulation (EUDR).
Hairulazim said that the palm oil industry contributes more than three per cent to Malaysia’s gross domestic product and generates over RM100 billion in annual exports, underscoring its commitment to sustainability.
MPOGCF also participates in more than 20 local and international exhibitions and conferences, including the International Union for Conservation of Nature (IUCN) Congress and UN climate conferences, to share research findings and engage global stakeholders.
“We are currently applying for membership in the IUCN because itis starting to care about palm oil, and slowly it is becoming clear that palm oil is no longer an enemy of the environment. They have also issued guidelines on how the palm oil industry can be biodiversity-friendly. When we become members, we can share our research stories at the IUCN congress,” he said.
He added that MPOGCF also plans to recognise oil palm plantations that demonstrate best practices in biodiversity management, conservation and sustainable operations.