https://www.nst.com.my/news/nation/2019/11/538580/greater-demand-malaysian-palm-oil-india-and-china
Source: nst.com.my | By Azura Abas | November 14, 2019 @ 5:10pm

PUTRAJAYA: The Malaysian palm oil industry is gaining stronger support from India and China with the signing of two memoranda of understanding today.

Prime Minister Tun Dr Mahathir Mohamad witnessed the signing of these MoUs between Bohai Commodity Exchange (Boce) Malaysia/Asean with Hakan Agro DMCC from India as well as Boce Global from China.

Primary Industries Minister Teresa Kok said through these MoUs, Malaysian signatory, BOCE Malaysia/Asean had struck a partnership with two major supply chain managers in the United Arab Emirates and China.

“Hakan Agro DMCC, from Dubai is a major player in the commodities supply chain and has extensive business exposure in the Indian subcontinent, the Middle East and the UAE.

“Already well entrenched in the commodities trade, Hakan Agro DMCC is confident that they would facilitate the export of more than one million metric tonnes (MT) of Malaysian palm oil in their core markets in the Indian subcontinent in 2020.

“Their enthusiasm has been further fortified by the knowledge that the ministry and Malaysian Palm Oil Council (MPOC) are embarking on an aggressive diversification of Malaysian palm oil into new markets,” she said after the MoUs signing.

Also present was Bohai Commodity Exchange Malaysia/Asean chairman Datuk Seri Khairudin Abu Hassan.

China’s Boce, Kok added, that signed the second MoU also saw an uptrend in demand for Malaysian palm oil and other commodities into China.

“It aims to import about 1.5 million metric tonnes to China by 2020.

“They aim at primarily the inner regions of China which are less exposed to palm oil, yet offer significant growth potential due to the large populations in the inner regions and which are also registering significant economic growth.
“I am pleased that such well established and experienced international supply chain managers are stepping in to help Malaysia diversify its palm oil markets.”

As Malaysia was being pressured by the European Union’s potential displacement of palm biofuel and the recent spate with Indian oils and fats trade associations, Kok described the latest developments as “timely”.

“On top of India and China, I am confident that Malaysia will find new and alternate markets for palm oil with growth targeted at Asean, Africa and the Middle East.

“Buoyed by the recent healthy spike in palm oil prices, the industry is ready to prove many detractors wrong.”

Much was also talked about when an Indian trade association recently signalled non-palm oil trade with Malaysia, Kok added.

“This also came back-to-back at a time when Malaysia had already increased its palm oil exports to India to record levels over 4 million metric tonnes due to the advantageous tax structure in India.

“Our market performance in India this year, up to December 2019, is thus projected to increase by at least 80 per cent minimum compared to the 2018 India import statistics.”