KUALA LUMPUR – Malaysia, second in palm oil production, said on Friday it would use “political tension” and the global shortage of edible oils to regain market shares after European buyers rejected the commodity due to environmental concerns.

The oil can be used in everything, from lipstick and noodles to making palm oil. However, top-producing countries like Indonesia and Malaysia are facing boycotts for being accused of exploiting migrants and clearing rainforests to grow their plantations.

Some companies are introducing “palm oil free products” over the past few years. In fact, the European Union, the third-largest palm-buyer in the world, has made it clear that they will be eliminating palm oil-based biofuels completely by 2030.

However, retailers such as Iceland supermarket in Britain have returned to palm oil after removing it from own-brand foods in 2018. This was due to a shortage of edible oils in the global market and Indonesia’s ban against palm oil exports.

Malaysian Minister for Plantation Industries and Commodities Zuaida Kamaruddin said that government will not “want to waste good crises”.

“It’s time for us to intensify our efforts to counter negative propaganda that undermines palm oil’s credibility, and for us showcase the many health advantages the golden oil has,” she stated.

Zuraida stated that global edible oil prices will likely remain high for the first half 2022, and EU demand will increase due to limited sunflower oil and soybean oil stocks.

FEDIOL, an EU vegetable oil association on Tuesday stated that Indonesia’s ban was not concerning as the country has plenty of palm oil reserves over several weeks.

As importers look for alternative oil sources, uncertainty over the availability of sunflower oil has fueled a hot vegetable oil market.

Zuraida stated that Malaysia will benefit from the shifting demand, and will make aggressive efforts to address the supply shortage in the long-term.

Malaysia and Indonesia account for over 85% of the global palm oil production. They have filed separate complaints with the World Trade Organisation.

($1 = 4.3700 ringgit)