Exclusive-Malaysia May Cut Palm Oil Export Tax by Half Amid Global Supply Crisis

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May 11, 2022

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by Mei Mei Chu and A. Ananthalakshmi (Reuters) Malaysia’s commodities ministry has proposed cutting the export tax on palm oil by as much as half to help fill a global edible oil shortage and grow the market share of the world’s second-largest palm oil producer.

Plantation Industries and Commodities Minister Zuraida Kamaruddin said in an interview with Reuters on Tuesday her ministry has proposed the cut to the finance ministry, which has set up a committee to look into the details.

Malaysia could cut the tax, likely a temporary measure, to 4%-6% from the current 8%, Zuraida said.

A decision could be made as early as June, she said.

Malaysia is looking to boost its share of the edible oil market after Russia’s invasion of Ukraine disrupted sunflower oil shipments and Indonesia’s move to ban palm oil exports further tightened global supplies.

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Malaysia will as well slow the implementation of its B30 biodiesel mandate …. READ MORE

Malaysia plans biodiesel mandate slowdown to meet global palm oil demand (Biofuels International)

Malaysia to maintain status quo on biodiesel mandate (Channel News Asia)

Zuraida reaffirms ministry’s stand on existing biodiesel mandate (Borneo Post)

Malaysia end-June palm oil stocks hit 7-month high as exports drop (The Star)

Excerpt from Biofuels International: Palm oil – used in everything from cakes to detergent – accounts for nearly 60% of global vegetable oil shipments and the absence of top producer Indonesia has rattled the market.

Zuraida told Reuters importing countries have asked Malaysia to reduce its export taxes, and some – like India, Iran and Bangladesh – are proposing barter trade. READ MORE

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