India's Palm Oil Demand Steady Despite Import Duty Hike, Says Malaysian Minister

Introduction

India, a significant importer of palm oil, has seen its demand remain stable despite a recent 20% import duty hike, according to Malaysia's Plantation and Commodities Minister, Ghani. As Malaysia continues to support India's edible oil sector, particularly in oil palm cultivation, the trade relationship between the two nations grows stronger.Palm Oil Demand in India: Key FactorsIndia’s consistent demand for palm oil can be attributed to several factors:

1. Population-Driven Demand: As one of the world’s most populous countries, India’s consumption of edible oils, including palm oil, remains high despite fluctuations in price.
2. Import Reliance: India depends on imports for nearly 60% of its edible oil requirements, making palm oil an essential component of its supply chain.
3. Support from Malaysia: Malaysia has been a long-term partner in providing affordable palm oil to India and has extended support in developing oil palm cultivation within India’s borders to help the country achieve greater self-sufficiency in the future.

Impact of the Duty Hike on Prices and SupplyWhile a 20% import duty hike aims to encourage domestic production and support local farmers, it has also led to some increase in retail prices. However, steady demand indicates that Indian consumers and businesses continue to rely on palm oil, given its affordability compared to alternatives like soy and sunflower oil

.Strengthening India-Malaysia Trade TiesMinister Ghani emphasized that Malaysia is committed to supporting India in strengthening its oil palm cultivation industry, with initiatives aimed at boosting India’s domestic edible oil production in the long term.

ConclusionIndia’s steady palm oil demand highlights the importance of international trade partnerships, particularly with Malaysia, in supporting its edible oil market. As both nations work together on oil palm cultivation initiatives, India’s reliance on palm oil imports may gradually reduce while ensuring stable, long-term supply.

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