Factor affecting the Malaysian palm oil export to India

The huge size of the population and increasing living standards from its growing economy do not give any other choice for India to satisfy the huge demand for edible oils unless importing them from different countries. Currently, India stands as the largest vegetable oils importer in the world, and...

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Main Authors: Ahmad, Mohammad Yusof, Kai, Kelly Seng Wong
Format: Article
Language:English
Published: HH Publisher 2024
Online Access:http://psasir.upm.edu.my/id/eprint/119425/
http://psasir.upm.edu.my/id/eprint/119425/1/119425.pdf
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author Ahmad, Mohammad Yusof
Kai, Kelly Seng Wong
author_facet Ahmad, Mohammad Yusof
Kai, Kelly Seng Wong
author_sort Ahmad, Mohammad Yusof
building UPM Institutional Repository
collection Online Access
description The huge size of the population and increasing living standards from its growing economy do not give any other choice for India to satisfy the huge demand for edible oils unless importing them from different countries. Currently, India stands as the largest vegetable oils importer in the world, and palm oil from Malaysia is one of its preferences. However, there is a mixed scenery of demand trend shown by India and surprisingly it seems to be significantly changed every five to seven years. Hence, this study is a discovery to reveal the factors that triggered the volatility in India’s demand for Malaysian palm oil. This is important since India is the largest importer of Malaysian palm oil and the switch in India's demand for Malaysian palm oil will affect the Malaysian economy. Thus, the outcome from the ARDL analysis of the study gives its findings by summarizing that the Indian market is highly susceptible to price changes in the long and short run, while it is more responsive towards income in the long run. Consequently, this study suggested the policymaker come out with an effective pricing strategy that applies to the current Indian economic situation at the same time introduce an efficient monetary policy to minimize the risk of currency instability on the export demand.
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spelling upm-1194252025-08-21T23:53:35Z http://psasir.upm.edu.my/id/eprint/119425/ Factor affecting the Malaysian palm oil export to India Ahmad, Mohammad Yusof Kai, Kelly Seng Wong The huge size of the population and increasing living standards from its growing economy do not give any other choice for India to satisfy the huge demand for edible oils unless importing them from different countries. Currently, India stands as the largest vegetable oils importer in the world, and palm oil from Malaysia is one of its preferences. However, there is a mixed scenery of demand trend shown by India and surprisingly it seems to be significantly changed every five to seven years. Hence, this study is a discovery to reveal the factors that triggered the volatility in India’s demand for Malaysian palm oil. This is important since India is the largest importer of Malaysian palm oil and the switch in India's demand for Malaysian palm oil will affect the Malaysian economy. Thus, the outcome from the ARDL analysis of the study gives its findings by summarizing that the Indian market is highly susceptible to price changes in the long and short run, while it is more responsive towards income in the long run. Consequently, this study suggested the policymaker come out with an effective pricing strategy that applies to the current Indian economic situation at the same time introduce an efficient monetary policy to minimize the risk of currency instability on the export demand. HH Publisher 2024-11-01 Article PeerReviewed text en cc_by_nc_4 http://psasir.upm.edu.my/id/eprint/119425/1/119425.pdf Ahmad, Mohammad Yusof and Kai, Kelly Seng Wong (2024) Factor affecting the Malaysian palm oil export to India. Malaysian Journal of Agricultural Economics, 31 (1). pp. 1-15. ISSN 2756-8288 https://journals.hh-publisher.com/index.php/MJAE/article/view/1043 10.36877/mjae.a0000540
spellingShingle Ahmad, Mohammad Yusof
Kai, Kelly Seng Wong
Factor affecting the Malaysian palm oil export to India
title Factor affecting the Malaysian palm oil export to India
title_full Factor affecting the Malaysian palm oil export to India
title_fullStr Factor affecting the Malaysian palm oil export to India
title_full_unstemmed Factor affecting the Malaysian palm oil export to India
title_short Factor affecting the Malaysian palm oil export to India
title_sort factor affecting the malaysian palm oil export to india
url http://psasir.upm.edu.my/id/eprint/119425/
http://psasir.upm.edu.my/id/eprint/119425/
http://psasir.upm.edu.my/id/eprint/119425/
http://psasir.upm.edu.my/id/eprint/119425/1/119425.pdf