(Correction - Please be informed that CPO import tariff is 65% and NOT75%.)

December 3 2003- MALAYSIA will continue efforts to get the IndianGovernment to review the 75 per cent import tariff imposed on crude palmoil (CPO).

Primary Industries Minister Datuk Seri Dr Lim Keng Yaik said Malaysiahopes that India would consider lowering the tariff considering that crudesoyabean oil’s import duty is only at 45 per cent.

He said the high tariff imposed on palm oil products could be one of thereasons for the drop in Indian imports of Malaysian palm oil over the pastthree years.

Malaysia has consistently supplied palm oil at very competitive prices tosupplement India‘s shortfall in oils and fats production.

Exports of Malaysian palm oil to India reached a record high in 1999 withan export volume of 2.4 million tonnes, but have declined gradually overthe last few years to reach 1.7 million tonnes in 2002, he said at theMalaysia-India Business Forum 2003 in Kuala Lumpur yesterday.

Dr Lim added that the trend can be improved and any trade or tariffbarriers that may appear to be obstacles to the continued trade growth canbe mutually reviewed.

India, whose domestic production of vegetable oils of 5.4 million tonnesin 2002 did not matched the domestic demand of 11 million tonnes thatyear, is one of the largest importers of Malaysian palm oil.

Also present at the discussion session on Trade, Food & Agroprocessing andSpecial Economic Zones” were Indian Commerce and Industry MinisterSatyabrata Mookherjee, Domestic Trade and Consumer Affairs Deputy MinisterDatuk S. Subramaniam and Federation of Indian Chambers of Commerce andIndustry secretary- general Dr Amit Mitra.

Discussion panellists include private and public sector leaders from bothMalaysia and India.

Dr Lim also called on Malaysian and Indian entrepreneurs to considerdeepening their cooperation in the palm oil sector by coming out with palmoil-based cosmetics and other products.

Malaysia can supply high-quality palm oil to India with competitive pricesfor the manufacturers there to produce cosmetics from palm oil-based oleochemicals.

Palm oil products include palm kernel oil, oleo chemical, palm-basedproducts and palm kernel cake.

The minister also identified areas for cooperation between both sides infood production such as packaging and canning of diary and other farmproducts, including spices, dairy products and dessicated powders forinstant and convenient use.

The total food production in India is likely to double in the next tenyears and hence, there would be greater opportunities for largerinvestments in the food and food processing industries as well as in thedevelopment of related technologies, skills and equipment, he noted.

India, the world’s second largest producer of food and food products nextto China, currently exports only 2 per cent of its processed food.

The minister also urged Indian businessmen to look beyond Malaysia’s 26million population and see the potential in the Association of South-EastAsian Nations’ market of 500 million people.

Bilateral trade between India and Malaysia has grown from RM2 billion in1992 to RM9.14 billion in 2002 in Malaysia’s favour.