Malaysian Palm Oil Council India

INDIAN SCENARIO:

Palm Oil :

The Indian economy is the 12th largest in the world by nominal value and the 4th largest by purchasing power parity (PPP). With a consistent GDP growth in excess of 8 per cent and with the booming manufacturing and foods sectors, there is growing demand for raw material, consumer goods and daily necessities in general.

One of the major areas of deficit is vegetable oils, both for edible and industrial purposes. Inspite of continuing efforts to increase domestic production and productivity, not much headway has been made. Although trade and industry expected 2009 imports to be higher than the 2008 figures, nobody was really prepared for what happened. Total imports for the calendar year 2009, compared to 2008, rose from 6.82 Million MT to 8.89 Million MT, an increase of 30%. Though an increase was expected, this increase was way beyond the projections of most pundits at the beginning of the year. Palm group of products were the major beneficiary in absolute quantity terms. Imports, as a percentage of total consumption, have now crossed the psychological barrier of 50%, in the process making palm oil the single largest consumed oil in the country.

Whilst efforts to increase domestic production continue, practically speaking, India’s dependence on imports is unlikely to abate in the near future. Palm Oil, which accounted for 80% of the total import basket in 2009, will continue to be the major vegetable oil consumed. This golden crop is best positioned in all ways, such as pricing, logistics, nutritional values, versatile usage and being user friendly, to take care of the needs of the Indian consumer.

Besides edible usage, Palm Oil is cost effective and a technically suitable input for non-food products as well. Cosmetics, soaps and detergents are just a few examples.

Malaysia is amongst the top producers of Palm Oil and the largest exporter. It is, thus, well placed to meet the requirements of both the Indian consumer and industry.