She urged all Malaysian oil palm growers – both plantation firms and smallholders alike – not to be unduly concerned with the recent development.

Moreover, she added, the recent weakening of crude palm oil (CPO) prices could have already factored in this possibility.

“Market analysts expect Malaysian planters to be the largest winners in the long run as they are able to sell their CPO at high spot prices which should translate into higher profit margin in the second quarter of this year, coupled with higher prices,” she said in a statement today.

“While the export ban lifting is a big relief to Indonesian planters, they have certainly missed out on the high CPO price period (February-April 2022) when Indonesia’s palm oil prices were trading at a larger discount to Malaysia with all the export control policies put in place since January 2022.”

Zuraida said Indonesia’s policies could well work to Malaysia’s advantage as the world’s second largest palm oil producer, given this would enable it to emerge as a dominant supplier to India which is the world’s top buyer of the edible oil.

Estimates for May show India imported around 570,000 tonnes of palm oil with 290,000 from Malaysia and 240,000 from Indonesia, Zuraida said.

“Above all else, MPIC believes that CPO prices will remain at elevated levels going forward, given the output uncertainties on major oilseeds (such as soybean, corn, rapeseed and sunflower seed) either due to geopolitical tensions or unfavourable weather.”