EUDR Delay Relieves Compliance Pressure, Supports Palm Oil Exports – Analyst

By Danni Haizal Danial Donald

KUALA LUMPUR, Sept 30 (Bernama) -- The postponement of European Union Deforestation Regulation (EUDR) implementation provides short-term relief for palm oil and other commodity producers by easing immediate compliance pressures and keeping trade flows steady.

Hyderabad-based TransGraph Consulting Pvt Ltd chairman and managing director, Nagaraj Meda said the delay is expected to have minimal impact on the palm oil industry and its prices, with an estimated reduction of 100,000 metric tonnes in monthly imports to the European Union (EU).

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“The EU Committee has proposed a postponement of the EUDR to the Environmental Committee, although this still requires approval from both the EU Parliament and member states.

“The EUDR delay allows companies to prepare for future sustainability rules by improving traceability, testing compliance systems, investing in technology, and engaging small farmers,” he told Bernama.

He said the postponement also offers both stability in the near term and an opportunity to build stronger, more resilient supply chains.

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At the same time, Nagaraj noted that the EU’s volume of imports of palm oil and its derivatives is unlikely to change significantly.

Recently, EU Environment Commissioner Jessika Roswall said the EU is seeking to postpone the EUDR for a second time, pushing back implementation by another year to end-2026.

She said the proposed delay is mainly due to the inability of the EU’s information technology (IT) system to handle the massive volume of traceability data required from companies dealing in commodities such as palm oil, soy, and timber.

Originally slated to begin in December 2025, the regulation will now take effect in December 2026.

Commenting on the IT system's inability, Nagaraj said to address the situation, the commission will likely need to increase the server capacity to accommodate the growing volume of data and ensure efficient processing.

“The European Commission (EC) has acknowledged capacity challenges in handling the vast amount of data required for these due diligence processes.

“This IT system responsible for managing due diligence statements under the EUDR operates on the TRACES platform, which serves as the central registry for the due diligence statements submitted by operators and traders, ensuring compliance with the regulation,” he said.

Developed and maintained by the EC, TRACES is the EC’s online platform for animal and plant health certification required for the importation of animals, animal products, food and feed of non-animal origin and plants into the EU, and the intra-EU trade and EU exports of animals and certain animal products.

-- BERNAMA