Malaysia’s Palm Oil Surplus Tops 22 Lakh Tonnes

10-Sep-2025 01:20 PM

Kuala Lumpur. Due to huge production and weak export performance, the outstanding surplus stock of palm oil in Malaysia at the end of August 2025 rose to above 22 lakh tonnes, which is the highest level in the last several months.

Due to the huge stock, there is a possibility of overall pressure on the benchmark futures price of crude palm oil, but due to good purchases from India, it seems difficult for the prices to fall much.

According to the report of the government body - Malaysian Palm Oil Board (Ampob), the production of crude palm oil in Malaysia increased by 2.35 percent to 18.55 lakh tonnes during August as compared to July.

The peak season of palm oil production is currently going on in the country. On the other hand, during the period under review, the gross export of palm oil products from the country fell by 0.29 percent to around 13.25 lakh tonnes. Its demand remained weak in some countries.

According to the report of Empob, although the import of palm oil from abroad in August declined by 19.66 percent to 49 thousand tonnes as compared to July and there was some increase in domestic consumption, but still the outstanding stock increased significantly due to huge production.

According to the report, on 31 August 2025, there was a surplus stock of about 22.03 lakh tonnes of palm oil in Malaysia, which was 4.18 percent more than the stock available on 31 July 2025.

Under this, during the period under review, the stock of crude palm oil (CPO) increased by 5.45 percent to 10.77 lakh tonnes and the stock of processed palm oil (CPO) improved by 3 percent to 11.26 lakh tonnes.

Similarly, the stock of palm kernel oil also increased by 3.13 percent to 3.31 lakh tonnes. Due to the festive season, heavy import of palm oil is taking place in India.