InfoSAWIT, KUALA LUMPUR – The second biggest palm oil producer in the world after Indonesia, Malaysia is escalating palm oil exports to Bangladesh because the country is about to expand in the global level. The government of Malaysia now relates to Middle East countries, such as, Saudi Arabia, Iran, Eastern Europe, and South Asia.
Bangladesh imported vegetable oil (soybean and palm oil) for more than US$ 2 billion in every year with fat and oil per capita - almost 100% of 11,8 gram in 2013 to be 22 gram in 2021. of 1,4 million tons of palm oil imports in 2020, 20% derived from Malaysia while the rests were from Indonesia.
Malaysia took part between 25 dan 24% of total palm oil production and export after Indonesia. Malaysian palm oil production reached about 70% of the total agricultural products from about 20% of total land in the country.
Bangladesh, which imported more than 1 million tons of palm oil in every year could be the new important market for Malaysia, namely if European Union follows up the plan to stop crude palm oil (CPO) imports from Indonesia and Malaysia in 2030, for the allegation that palm oil plantations contribute to deforestation.
As quoted from AseanBriefing, by export expansion to many countries, for example, Bangladesh, Malaysia will balance some export potential loss of palm oil, such as, from European Union. Bangladesh imported 3 million tons of fat and oil (1,5 million tons were palm oil) for the country could not fulfill domestic demands and production. It could be increasing to be 1,9 million tons in 2025 from 1,4 million tons in 2020.
The better economic level since Bangladesh Independence – day makes the country as the second biggest one in South Asia that for the first time, the country surpassed gross domestic product per capita in India in 2020. Then, Bangladesh could realize GDP per capita about US$ 3.253 in 2026 compared to US$ 3.018 in India and fast urbanization will escalate vegetable oil demands. (T2)