25/10/2012 (India Times) - Malaysian palm oil exports to India are likely to touch a record high of over two million tonnes (mt) in calendar 2012. "Due to the export duty cut announced by Malaysia from January 1, we believe it would prompt India to buy more palm oil from us next year. The figure may touch 2mt this year," said Lee Yeow Chor, chairman, Malaysian Palm Oil Council (MPOC).

He was speaking on the sidelines of the recent Malaysian Palm Oil Trade Fair and Seminar 2012, organized by MPOC. Till Septemberend , Malaysian palm oil exports to India registered a 58% growth rate at 1.84mt from 1.11mt in the corresponding period a year ago. In 2011, exports stood at 1.66mt.

BV Mehta, executive director , Solvent Extractors Association of India (SEAI), said that the move (Malaysia's export duty cut), will benefit buyers in India as it will give them an opportunity to evaluate where they will get a better price. "This is provided Indonesia does not change its present duty structure," Mehta said. India currently buys 20% of its requirement from Malaysia and the rest from the largest producer Indonesia.

But with the country's import of edible oil expected to touch 61% by 2020 from 56% currently, SEAI has urged the government to impose an import duty of 10% on crude palm oil (CPO) and 20% on refined oil imports as it would encourage farmers to increase acreage under rabi oilseeds, such as rapeseed and mustard.

Currently, there is no duty on CPO imports, while refined, bleached and deodorized palm oil attracts a duty of 7.5%.

India's import bill of edible oils is approximately Rs 55,000 crore."Prices of soyabean have crashed by about 30-35 %. So, this is the right time for the government to intervene. The government should not hesitate to protect the farmers' interests," Mehta said. Such a move would not impact consumers as even edible oil prices have crashed by about 30%, he added said.