Malaysia has decided to maintain a 10 percent export duty on crude palm oil (CPO) for February 2025, as the price of CPO remains high.

The reference price for CPO in February is estimated at 4,817.70 ringgit (approximately 1,071.79 USD) per tonne, which is slightly lower than the reference price of 5,001.72 ringgit per tonne in January 2025.

Despite this decline, the price is still above the threshold for the highest export duty rate of 10 percent, which applies when the reference price exceeds 4,050 ringgit per tonne.

Under Malaysia’s export duty framework, if the reference price of CPO falls below 2,250 ringgit per tonne, no export duty is applied.

If the price falls between 2,250 and 2,400 ringgit per tonne, a 3 percent export duty is levied. As the price increases, the export duty rises, with the maximum being capped at 10 percent. This duty structure is designed to adjust based on market conditions.

The high price of CPO compared to soybean oil may impact global trade. Specifically, India's palm oil imports are expected to decrease, possibly falling below 400,000 tonnes in January, as high palm oil prices make it less competitive compared to other oils.