@ AGROBiz | July-August . 2024

Malaysia and India join forces against Western anti-palm oil campaigns

This development came during Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani ’ s visit to New Delhi from Jul 17-18 , where he led the Malaysian Agricommodity Economic Mission .

CHAMPIONING SUSTAINABLE PALM OIL

India , which imported 3.3 million metric tonnes of palm oil valued at RM13.3 billion from Malaysia in 2023 , is championing the growth and export potential of Malaysia ’ s palm oil products .

Johari emphasised India ’ s encouragement for sustainable palm oil production , aiming to boost exports to more countries .

During his visit , Johari engaged with Adani Wilmar Ltd , a significant importer of Malaysian palm oil , and held discussions with Indian officials , including the Minister of Agriculture and Farmers ’ Welfare .

These meetings aimed to explore new cooperation opportunities and strengthen bilateral trade relations .

A significant highlight of the trip was the roundtable organised by the Indian Vegetable Oil Producers Association ( IVPA ).

IVPA President Sudhakar Desai expressed strong support for Malaysia ’ s stance against the anti-palm oil campaign , stressing the need for targeted efforts to highlight the sustainability and economic benefits of palm oil .

Desai advocated for collaborations with think tanks and research institutions to produce unbiased studies , which would be used in marketing and advocacy campaigns to build consumer trust .

HIGHLIGHTING PALM OIL EFFICIENCY

At the roundtable , Johari pointed out that palm oil is the most efficient edible oil in terms of productivity and land use . Despite occupying less

Johari Abdul Ghani during a meeting with Adani Wilmar Ltd .

than 8 per cent of the total crop area , oil palm trees produce 32 per cent of significant seed oil .

Palm oil ’ s high yield - 3.3 tonnes per hectare - outstrips that of soybean , sunflower , and rapeseed , making it a cost-effective and reliable source of edible oil .

In addition to palm oil discussions , Johari requested India to ease export curbs on essential farm goods such as rice and sugar .

These commodities faced export restrictions in 2023 as India aimed to stabilise local prices ahead of their general elections .

Johari highlighted that lifting these curbs would benefit Malaysia , which relies on India for significant

THE MPOC collaborated with the European Forest Institute ( EFI ) and key stakeholders to discuss preparations , challenges , and solutions for EU operators and Malaysian exporters to comply with the EU Deforestation Regulation ( EUDR ). EU operators and dealers must verify that items entering the EU are deforestation-free and produced according to local regulations by Dec 30 , 2024 .

This webinar , attended by nearly 500 industry stakeholders , highlighted the constraints affecting its compliance preparations , including the EU ’ s lack of clear guidance on the EUDR ’ s requirements , the sheer volume of information involved , and the palm oil supply chain ’ s complexity .

Technical Expert Dr Josil Murray of the European Forest Institute ( EFI ) presented the latest updates on Malaysia ’ s efforts to improve the Malaysian Sustainable Palm Oil ( MSPO ) certification scheme , particularly in

Johari Abdul Ghani at the IVPA Global Conference 2024 India .

imports of sugar , rice , and onions .

India ’ s move to potentially adjust the export tax on parboiled rice and lower the floor price for basmati rice exports could further impact these trade dynamics .

COMMITMENT TO QUALITY AND SUSTAINABILITY

Johari reaffirmed Malaysia ’ s unwavering commitment to supplying India with high-quality , sustainably produced palm oil .

This commitment is a testament to Malaysia ’ s dedication to meeting the needs of the Indian market , especially with the growth of India ’ s middle-class consumer base .

In 2023 , Malaysia ’ s palm oil exports to India accounted for 13 per cent of its total palm oil exports , amounting to RM13.3 billion .

As the global palm oil industry faces challenges from regulations like the European Union ’ s Deforestation-free Regulation ( EUDR ), Johari criticised the EUDR ’ s discriminatory stance and urged fair enforcement of environmental and sustainability laws .

He remains optimistic about the increasing demand for Malaysian palm oil in India , driven by the country ’ s rising middle class and their growing consumption needs . This partnership holds the potential for significant growth and mutual benefit .

Belvinder Kaur Sron

deforestation-related definitions , legality , geolocation , and palm oil production traceability .

This ensures that the certification scheme meets EUDR criteria and helps Malaysian exporters comply . She also appreciated Malaysia ’ s dedication to meeting EUDR regulations despite industry worries due to unclear interpretation .

Ku Kok Peng , Chief Sustainability Officer of Kuala Lumpur Kepong Berhad , mentioned the many EUDR preparation problems that Malaysian exporters are confronting . He discussed the risks of smallholder exclusion , limited compliant supply to EU at higher costs , and the need for the EU to urgently resolve the many uncertainties faced , as exporters must prepare EUDR-compliant shipments to the EU by Sep-Oct this year . The situation discourages businesses from investing in the EU , which might hurt employment and the economy .

Daphne Hameeteman , General Manager Sustainability , External Engagement , Wilmar International , discussed Wilmar ’ s EUDR preparations , stakeholder engagement , information system pilot testing , and challenges in meeting EUDR requirements , interpreting requirements , and managing the due diligence process ’ s massive amount of information and documentation .

She called for improving the EU Information System and warned that EU operators may not have enough EUDR-compliant palm oil by 2025 due to these problems .