NEW DELHI, Sept 1 (Bernama) -- The Malaysian palm oil industry is lookingat adding value to its exports by expanding its oleochemical productssegment.

"We anticipate that Malaysian exporters will focus more on value-addedproducts like oleochemicals and palm-based health products. This would bein line with the trend of increasing affluence in India," Datuk HaronSiraj, Chief Executive Officer (CEO) of Malaysian Palm Oil PromotionCouncil, is reported to have said.

The market in the growing non-food segment for palm oil and palm oilderivatives -- toilet and laundry soaps, detergents and shampoo -- was1.73 million tonnes in 2002, Haron said in an article in a business daily,the Economic Times' supplement on Malaysia Day.

"With the current trend of consumers preferring natural and biodegradableproducts, palm-based oleochemicals applications could take advantage ofthe expanding Indian market."

Another area, where Malaysian exporters would like to expand theiractivities is India's processed food industry, where palm oil could beused, such as in biscuits, bread, confectionary, chocolate and ice creammanufacture.

The sector, he said is growing at eight percent annually, and recorded atotal production of 3.18 million tonnes in 2002.

"Downstream palm oil products could be in the form of shortening agents,bakery fats, cocoa butter substitutes and confectionary fats, which couldbe tailor-made to the buyers requirements," Haron added.

India imports more than three million tonnes of palm oil annually. "Indiastill has to rely on imports to supplement growing demand. Even if India'soilseeds and food products production increase, it is conceivable that itmight not fill the demand-supply gap," Haron said.

Bearing in mind that India's average annual per capita consumption of oilsand fats is 12 kg, there is more scope for palm oil to contribute towardsIndia achieving a higher recommended consumption level of 22 kg, he added.

-- BERNAMA