Malaysia not to press for review of import duty hike on edible oil
Malaysia has expressed respect for India’s decision to increase import duties on edible oil, with Minister Johari Bin Abdul Ghani indicating that it won’t affect bilateral trade relations. He emphasized Malaysia’s readiness to support India’s National Mission on sustainable oil palm cultivation through technology transfer and improved farming practices. Ghani noted that temporary order cancellations following the duty hike are not a concern, as India will still require edible oil. He also welcomed the EU’s delay in implementing its Deforestation Regulation, which poses challenges for palm oil producers.
Malaysia said it “respected” India’s decision to increase the import duty in edible oil and maintained that the move would not impact the trade relations between the two countries.
Malaysian Minister for Plantation and Commodities Johari Bin Abdul Ghani said here on Tuesday that the country was also ready to support India’s National Mission on sustainable oil palm cultivation with transfer of technology, high-yielding seeds and saplings. Mr. Ghani was speaking to reporters on the sidelines of the Malaysian Palm Oil Conference, an annual conference of all stakeholders in the oil palm sector in the country.
Mr. Ghani was in New Delhi recently for a meeting with senior government officials, including Union Agriculture Minister Shivraj Singh Chouhan. Mr. Ghani said he had conveyed to Mr. Chouhan, Malaysia’s willingness to help India with technology and better farming practices in the sector. “The more people appreciate palm oil, it is good for Malaysia,” he said.
When asked about the increase in import tariff and cancellations of some orders after this, he said such cancellations were temporary. “It is temporary as I believe that for 1.4 billion population in India need edible oil. There are a lot of options for edible oil. But we will continue to be a good partner for India as we offer sustainable products for consumers,” he said.
When asked if he would request the Indian government to reconsider the tariff hike, he said Malaysia would not do that. “It is their [India’s] exclusive right and prerogative,” he said.
He said his country would support indigenous palm oil production in India. “We want to be a good friend for India. We depend on India for rice and onions. We have to learn a lot from India on food security,” he said.
Talking about the implementation of the European Union Deforestation Regulation (EUDR), which has posed tough challenges for Malaysia, one of the largest exporters of palm oil, he welcomed the European Commission’s decision to delay its implementation till December 30, 2025. “This proposed phasing-in period would give many producer countries time to take the necessary steps to comply and rectify their policies. At the same time, critical issues such as creating a transparent benchmarking criteria would need to be closely looked over so as to not unfairly label producer countries as ‘high-risk’. In the spirit of trade fairness, we hope that the EU Parliament will play a more accommodative role to address this matter for the benefit of the world,” he said.
The Malaysian palm oil industry was under the radar of the West for the alleged deforestation, particularly endangering the habitats of orangutans. Mr. Ghani said measures such as developing and using high-yielding palms and providing the Malaysian Sustainable Palm Oil (MSPO) certification schemes are central to the country’s efforts to ensure sustainable practices in the sector. “MSPO has become the cornerstone of our commitment, addressing key issues such as traceability, deforestation-free policies, requirement to have legitimate land ownership title and compliance with the international labour practices,” he said, addressing the Forum.
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