The country's palm oil exports fell 14% between July 1 and 25 compared with the same period in June, according to independent market surveyor Intertek.
It said a total of 1.03 million tonnes of the commodity were tracked compared with 1.2 million tonnes in the same period last month.
Crude palm oil for third-month futures rose RM18 yesterday to RM2,944.
According to Malaysian Palm Oil Council statistics, India overtook the European Union (EU) as the No. 2 importer of Malaysian palm oil after China for the January-to-June period, with the former buying 1.07 tonnes versus EU's 1.04 tonnes.
India recently raised taxes on its imports of refined palm oil products, which analysts said could put a dent in the earnings of Malaysian and Indonesian refiners of the commodity.
The world's biggest importer of palm oil, India effectively doubled import taxes last Thursday when it ended a six-year freeze on the base import price of processed palm olein, increasing the cost of imports from Malaysia and Indonesia.
The decision, however, is neutral for crude palm oil (CPO) producers as India's CPO imports remain duty-free.