Economy, Domestic Economy

Iran Palm Oil Imports Reach $135m in 5 Months, Up 46%

Palm Oil Imports Reach $135m in 5 Months, Up 46%Palm Oil Imports Reach $135m in 5 Months, Up 46%

Over 170,000 tons of palm oil worth $135 million were imported during the five months to August 22, registering a 26% and 46% growth in weight and value respectively compared with the similar period of last year.

Malaysia is the main source of palm oil for Iran, Eranico reported.

Malaysian Plantation Industries and Commodities Minister Mah Siew Keong, who led an economic and technical mission on palm oil, timber and rubber products to Iran earlier this year, has said prices and volume of palm oil products shipped over to Iran will be higher this year.

In 2014, Iran imposed import quota on palm oil imports, based on which total palm oil import did not exceed 30% of its total import of oils and fats. As a result, Iran’s palm oil purchases dropped by 47% from 997,000 tons in 2013 to 330,970 tons in 2015.

In March 2016, the import quota was removed but replaced with a higher import tax of 40%. Other vegetable oils are taxed at 24%.

According to a new report by US-based market research and consulting company Grand View Research, Inc., Iran’s palm oil market is expected to top $600 million by 2025. Its increasing usage in cosmetics and biodiesel industries has contributed to a significant portion of market revenue in recent years.

Lower palm product prices, compared to other vegetable products such as soybean, sunflower and groundnut, have also led to higher substitution in food, beverage, cosmetics and biodiesel industries.

Palm oil is an edible vegetable oil derived from the reddish pulp of the fruit of oil palms. Its overall health impacts, particularly in relation to cardiovascular disease, are controversial and subject to ongoing research.

Much of the palm oil that is consumed as food is to some degree oxidized rather than in the fresh state and this oxidation appears to be responsible for the health risk associated with consuming palm oil.

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