In order to take an overview of this situation, a 20-member high-level Malaysian palm oil economic and technical mission team would be visiting the country between April 20 to 27. The team, led by Malaysia's minister of primary industries Dato' Seri Dr Lim Keng Yaik, will be accompanied by representatives of all the key organisations affiliated with the Malaysian palm oil industry and leading exporters.

The government in its recent Exim policy has freed the import of RBD (refined, bleached and deodorised) palmolein-unrestricted imports of RBD palm oil, palm kernel and palm styrene. While this policy changes has upset the domestic vegoil industry in the country, andthe domestic coconut oil producers' lobby, it has prompted the Malaysian palm oil sector to find opportunities in improving the palm oil exports to India. The domestic coconut oil lobby too is unhappy as palm kernel could have an impact on prices of coconut oil in the country. And that could have an effect on domestic coconut oil prices.

The team will visit the agriculture and commerce ministry officials in New Delhi on April 21, followed by its visit in Mumbai on April 23 (with importers) and in Chennai on April 25 (with palm growers). The Malaysian palm oil team's visit becomes important, primarily because the soft oils have displaced the earlier importance of palm oil in the country's total edible oils' imports during the last year (1998-99). According to Solvent Extractors's Association (SEA) executive director BV Mehta, the import of palm oil in 1998-99 has declined to around 4,60,000 tonnes, or 46 per cent from a high of around 12,30,000 tonnes (70 per cent) in 1996-97 and 14,70,000 tonnes (70 percent) in 1997-98. The SEA's March 1999 bulletin reveals there has been no import of palm oil during the last five months from November 1998. The visiting team intends to address the main concern of how Malaysia can improve the prospects of palm oil consumption in India, apart from increasing the demand for edible oils.