Malaysia has formally requested India to maintain export channels for crucial commodities such as rice, sugar, and onions, even amidst broader export restrictions. This request was articulated by Malaysia's Minister for Plantation and Commodities on Thursday.
"Malaysia depends heavily on imports for certain essential goods. Our domestic rice production meets only 65% of our needs, and the demand for basmati rice continues to grow. We hope India can allocate some quantities for Malaysia despite any overall bans," stated the Minister.
During his visit, the Minister also met with India's Union Agriculture Minister. The two discussed Malaysia's interest in collaborating on India's National Mission on Edible Oils-Oil Palm (NMEO-OP). Malaysia has offered to share its expertise, seeds, and technology to support this initiative, which aims to produce 2.8-3.0 million tonnes of palm oil domestically by 2032-33, significantly reducing India's import dependency.
The Minister emphasized the importance of large-scale oil palm estates, ideally between 8,000-10,000 hectares, for optimal yields from high-yielding and low-gestation seeds. Currently, Indonesia and Malaysia are the primary suppliers of palm oil to India, with Malaysia contributing approximately 3 million tonnes of India's annual 9.5-10 million tonnes of palm oil imports.
"Malaysia is committed to continuing its palm oil supply to India," affirmed the Minister. "Our domestic production of 18-19 million tonnes annually leaves us with a significant surplus. We are open to special arrangements where Malaysian companies can invest in India's palm oil mission."
Addressing the annual conference of a prominent association of vegetable oil producers in India, the Minister highlighted that all palm oil exported to India from Malaysia is sustainably produced. He pointed out the efficiency of palm oil production, noting that one hectare of oil palm can yield as much as 3.3 tonnes of oil, compared to 0.5 tonnes from soybeans and 0.8-0.9 tonnes from rapeseed or sunflower seeds.
In response to concerns about labor practices on Malaysian palm plantations, the Minister assured that strict adherence to International Labour Organization (ILO) standards is now mandatory. "Plantations must comply with labor laws to produce palm oil. Companies found in violation are prohibited from exporting," he added.
Malaysia's palm oil production spans approximately 5.7 million hectares, with large companies managing about 4.2 million hectares.
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