Kuala Lumpur, Malaysia (CU)_ After Russia’s invasion of Ukraine interrupted the sunflower oil exports and Indonesia’s decision to limit palm oil exports further reduced world supply, Malaysia seeks to increase its share of the edible oil market. Palm oil, which is a major ingredient in everything from cakes to detergents, contributes to about 60 percent of global vegetable oil exports. The absence of Indonesia, a leading producer of palm oil, has also shook the market.
According to the country’s commodities minister, Malaysia is planning to reduce its export tax on palm oil and would postpone the implementation of its biodiesel mandate in order to fulfill global demand for edible oil. In an interview, Zuraida Kamaruddin, Minister of Plantation Industries and Commodities, stated that her ministry has already requested the finance ministry for the reduction, which has established a committee to examine the specifics.
Zuraida stated that Malaysia, the second largest palm oil producer in the world, might reduce the tax rate from the present 8 percent to 4 to 6 percent. According to Zuraida, the reduction will most likely be temporary and that an early decision could be expected in around June. She said, “During these times of crisis, probably we can relax a little bit so that more palm oil can be exported”.
Zuraida also informed the media that importing nations have requested Malaysia to decrease its export levies, while other nations including India, Iran, and Bangladesh have proposed barter trading. She also stated that Malaysia will postpone the implementation of its B30 biodiesel requirement, which mandates a percentage of the country’s biodiesel to be blended with 30 percent palm oil, in order to meet the supplies of the food industry.