NEW DELHI: Malaysian and Indian companies should explore joint projects in the palm oil sector to take advantage of the growing food sector in India, Primary Industries Minister Teresa Kok (pix) said.
There are many investment opportunities in downstream, higher value-added palm oil derivatives such as oleochemicals, pharmaceuticals, bio-diesel, processed foods, specialty products and even consumer brands, the minister told an industry conference in Mumbai on Thursday.
“We believe that there are opportunities for the private sectors of our respective countries to redefine business approaches to form partnerships and strategic alliances.
“Such efforts should ultimately allow for expansion in the edible oil and palm oil business,“ Teresa said.
As India’s annual household spending is expected to exceed US$300 billion (RM1.26 trillion) in 2020, the minister said an increase in the people’s purchasing power will lead to higher consumption of food items, including oils and fats.
“We hope the Malaysian palm oil will contribute towards meeting this requirement,“ she said.
Palm oil accounts for about 40% of total vegetable oils consumed in India.
In 2018, Malaysia exported 2.6 million tonnes of palm oil worth US$1.65 billion (RM6.92 billion) to India, accounting for 28% of total Indian palm oil imports and 18.35% of Malaysia’s total exports to India.
With the balance of trade in Malaysia’s favour, Teresa said Malaysia is seriously exploring various avenues to import more Indian products to address the issue of Indian trade deficit. — Bernama
