In a bid to ensure a steady flow of palm oil exports from Asia to the EU, Indonesia and Malaysia are sending a joint delegation to Europe to gather more information and present their point of view. view on the future policy of the European Union concerning this raw material. A new ban on commodities linked to deforestation could block future palm oil imports from these two countries.
All stakeholders, namely Indonesia, Malaysia and the European Union, have indicated that the future of free trade for palm oil is virtually certain.
Indonesia has suspended half of palm oil export permits to maintain domestic supply during the upcoming Islamic holidays in the country. Meanwhile, Malaysia has announced that it will consider retaliatory measures – in the form of export cuts – to limit palm oil sold to the EU, in case the bloc goes ahead with the deforestation regulations.
At the same time, the EU is getting closer to approving a new deforestation regulation, which would reduce global deforestation by banning the import of products from risk areas.
Last January, the European Parliament’s Environment Committee paved the way for a momentous vote on the issue, which will take place in the coming months.
Against this backdrop, vegetable oil prices have been falling steadily since March 2022. The FAO Vegetable Oil Price Index fell 2.9% in February, with oil prices 25% lower. % than a year ago – the UN body says there is “moderate global import demand” for palm oil.
Source : Gavroche