23.05.2019 (The Edge Markets MY) - KUALA LUMPUR (May 23): Sime Darby Plantation Bhd (SDP), the world's largest palm oil plantation company by planted area, does not foresee India reducing palm oil imports from Malaysia despite a report saying it might trim some overseas orders.

Deputy managing director and chief operating officer (upstream) Mohamad Helmy Othman Basha said Malaysia and India have had a long established market relations so that even if India did cut orders, Malaysia would still have a competitive edge compared to other exporters.

He said there is a duty differential imposed between Malaysia and Indonesia, and Malaysia always has a good advantage.

"India always plays with the (order) cut-down and duty structure. I won't blame them because they have vegetable oil producers of their own.

"It (the change in duty structure) happens all the time. They may do this for the next six month but for the six months after, they will change it. It is normal for India," he told reporters after the launch of SDP's new initiative, Crosscheck, here today.

Reuters reported yesterday that India would grow soybeans on more land in the 2019 crop year, which could trim costly palm oil imports from Malaysia, Brazil, Argentina and Indonesia.

India, the world's biggest vegetable oil importer, imports most of its palm oil from Malaysia and Indonesia.

Asked on whether SDP had received any order reduction from India, Mohamad Helmy said: "No, we have not."

About 60 to 70 percent of SDP's palm oil exports from Malaysia go to India, he said.