KUALA LUMPUR – Malaysian palm oil companies should export crude palm oil (CPO) to India, to allow the South Asian nation’s refining industry to prosper, said a veteran industry analyst.
Godrej International Trading and Investments Pte Ltd director Dorab Mistry said Malaysia, the world’s second-largest palm oil producer, should not see India, the largest consumer of palm oil, merely as an export destination, but also an industry partner.
“It took us many years to convince the Malaysian government to go to India as a partner, and not strictly as an exporter of palm oil.
“And don’t just flood India with RBD (refined, bleached and deodorised) oil. Send your CPO, and let India’s refining industry prosper because that is a win-win situation,” he told the Malaysian Palm Oil Trade Fair and Seminar 2021 yesterday.
The four-day event, held virtually, was organised by the Malaysian Palm Oil Council.
Mistry said India’s consumption of the commodity will continue to expand with the import growth in oilseed and palm oil.
On its pursuit of a self-reliant edible oil industry, he said progress will be slow despite scientific advancements.
“I don’t think India will expand cultivation as much as we would like to, so it will always remain like China, the major importer of oilseed and protein.”
He said one of the challenges is the issue of fragmented landholding and land reforms.
“I hope it will be sorted out quickly. I’m not very optimistic about India’s potential as a major agriculture producer.
“We have done wonders in rice and wheat, and we are exporting rice around the world. (But) I think India will have to concentrate on value-added products, such as industrial goods and software, as well as services, to bring about economic growth.” – Bernama, January 8, 2021
