Rise in palm oil prices has changed the dynamics of the Asia-Pacific market this week

The recent surge in Malaysian palm oil prices has caused unrest in the Asia-Pacific region (APAC), significantly affecting market sentiment and trade dynamics. This price increase, coupled with India’s recent decision to increase import duties, has led to a series of cancellations and strategic shifts among processors and importers, thereby affecting the overall market dynamics. According to the latest market development data, Indian processors canceled about 100,000 tons of palm oil purchases scheduled for delivery between October and December. This decision followed New Delhi’s decision to raise import duties by about 20 percentage points, significantly increasing the total import duty on crude palm oil from the expected 5.5% to almost 27.5%. “The significant increase in duties and price hike in Malaysia has taken everyone by surprise,” said an Indian buyer operating an East Coast crushing plant. This sudden shift has created a unique situation in which SEZs could potentially ...