Kuala Lumpur: Malaysian palm oil companies should export crude palm oil (CPO) to India to allow the Indian refining industry to prosper, according to 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 only see India, the largest consumer of palm oil, as an export destination, but also as 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 said at the Malaysian Palm Oil Trade Fair and Seminar 2021 (Pots Digital 2021) Thursday.
The four-day virtual event was organised by the Malaysian Palm Oil Council.
Mistry noted that India’s consumption of palm oil would continue to expand with the extra import growth of oilseed and palm oil.
Commenting on India’s pursuit for a self-reliant edible oil industry, he said the progress would be slow despite the wonders of science.
“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.
He noted that one of the challenges is the problem of fragmented landholding and land reform.
“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,” he said.
