With growing business between India and Malaysia, the trade ties between the two countries is expected to reach USD 15 billion by next year, Malayasia Plantation Minister Amar Douglas Uggah Embas today said.
CECA (Comprehensive Economic Cooperation Agreement) provided a new framework which lead to stronger commercial and economic ties at the government and business-to-business level.
"This is expected to stimulate trade activities between both countries with a target of USD 15 billion in trade by 2015," the Minister said at Malaysia-India Palm Oil Trade Fair and Seminar (POTS) 2014, here today.
Malaysia-India POTS 2014 is organised jointly by Malaysian Palm Oil Council (MPOC) and Malaysian Palm Oil Board (MPOB), with the support from the Solvent Extractors' Association (SEA) of India.
Total trade value between the two countries in 2013, stood at USD 13.16 billion, with palm oil making up 15 per cent of the total value.
The volume has grown almost three times over a span of 20 years. Palm oil consumption in 1993 was only 150,000 tonnes or just 2 per cent of the total oils and fats consumed by the country.
However, this volume increased to 8.3 million tonnes and currently palm oil dominates the Indian consumer market, with share of 42.3 per cent in 2013.
"Last year, Malaysian palm oil imports by India was valued at USD 1.96 billion, accounting to 27 per cent of the total palm oil imported by India. From January to April this year, the import of palm oil and its products have recorded a 7 per cent growth compared to the same period in 2013," he added.
He also urged the private sectors of the two countries to redefine the business approaches to form partnerships and strategic alliances to discover new avenues for expanding the edible oil and palm oil business.