KUALA LUMPUR: FELDA Global Ventures Holdings Bhd (FGV), the world's largest crude palm oil producer, plans to collaborate and explore partnership opportunities with a few Indian partners to further strengthen its market position as the leader in the oil palm-based downstream sector.
FGV president and chief executive officer Datuk Mohammed Emir Mavani Abdullah said India is looking at the company’s specialty products segment, especially on its cocoa butter substitutes for the bakery sector.
“There is a big demand for oil palm-based products and I am sure you have heard the news that India is also trying to grow oil palm, therefore we are discussing with a few partners in India to work together on oil palm plantation,” Mohammed Emir explained.
India recently announced its plan to grow two million hectares of oil pam in the next three years.
The subcontinent, which is the world’s largest palm oil importer, is planning to cultivate oil palm to reduce the country’s demand and supply gap as India imported over 65 per cent of the edible oils last year to meet domestic demand.
India imported over 3.25 tonnes of palm oil in 2014. Malaysia’s palm oil exports fell 4.6 per cent to 17.3 million tonnes last year from 18.15 million tonnes in 2013.
Mohammed Emir said in current market conditions, the best way to collaborate with others is to grow, rather than compete with each other.
“FGV is collaborating by extending our technical expertise. We can also work with them on how to improve productivity of oil palm in India if there is a desire to go into it,” said Mohammed Emir.