Malaysia Sees Significant Rise in Palm Oil Exports; Exports to India Reach 11-Month High

21-Oct-2025 02:22 PM

Malaysia Sees Significant Rise in Palm Oil Exports; Exports to India Reach 11-Month High

Malaysia’s palm oil exports rose to 1.42 million tonnes in September 2025, up 102,000 tonnes (+7.7%) from the previous month.

The largest increase came from South Asia, with exports to India reaching an 11-month high.

Exports to Sub-Saharan Africa, the Middle East and North Africa, the Americas, and Central Asia also recorded growth.

According to the Malaysian Palm Oil Council (MPOC), despite the rise in exports, domestic palm oil stocks are currently at their highest level in 22 months. This is because domestic consumption has returned to the normal range of 300,000–350,000 tonnes per month, while imports also increased by 20,000 tonnes (+33.9%), contributing to the stock buildup.

In the international market, palm oil is trading at a premium over soybean oil. As of mid-October, palm oil was priced $42 per tonne higher than soybean oil in Europe and $26 higher in India.

MPOC noted that speculation over Indonesia’s potential B50 biodiesel program is also supporting palm oil prices.

The B50 program is estimated to require around 17 million tonnes of palm oil, an increase of 3 million tonnes from the current B40 mandate, representing roughly 35% of Indonesia’s total production.

Indonesia consumes about 10 million tonnes for food purposes, leaving only around 22 million tonnes or less available for export if B50 is implemented. This is expected to reduce exportable supply, whereas Indonesia has historically exported 24–28 million tonnes of palm oil annually over the past five years.

MPOC anticipates that palm oil prices will remain steady above RM4,400 per tonne, but market sentiment is likely to remain cautious due to weak crude oil prices, high vegetable oil inventories in major consuming markets such as China and India, US–China trade tensions, and rising global soybean stocks.