PETALING JAYA, Dec 1 (Sin Chew Daily) — The increase in demand for palm oil from China and India leads to higher prices for palm oil fresh fruit bunches and crude palm oil.

Foreign minister Datuk Seri Hishammuddin Hussein said this could be attributed to the ministry for the effort it made.

Hishammuddin posted on his Facebook that more than 500,000 smallholders and their families would benefit from the price increase, especially during the COVID-19 pandemic.

"Malaysian Palm Oil Board (MPOB) chairman Datuk Ahmad Jazlan Yaakub said the price increase in palm oil is due to increase in demand from India and China," he said.

After achieving an agreement with his Chinese counterpart Wang Yi early October, Hishammuddin said China agreed to buy 1.7 million tonnes of palm oil from Malaysia through 2023.

"I have also said earlier that the foreign ministry would be using its diplomatic ties with India to recover Malaysia's palm oil export to that country," he said.

Hishammuddin also sent a message to Subrahmanyam Jaishankar, his Indian counterpart, to express his gratitude for the decision made by the Indian government to cut import duty from 37.5% to 27.5%.

The lower import duty is expected to see the price of Malaysian palm oil to rise further.

Hishammuddin also said he had requested representatives from European Union to end discrimination against palm oil and recognize the Malaysian Sustainable Palm Oil certification.

He said the ministry would continue assisting relevant government departments to help the palm oil industry, especially the 500,000 smallholders.