Malaysia's palm oil product exports to Iran dropped by 42.1 per cent to 447,058 tonnes in 2014, from 635,258 tonnes in 2013, said Plantation Industries and Commodities Minister Datuk Amar Douglas Uggah Embas.

He said overall, exports of Malaysian palm products fell by 36 per cent to 515,231 tonnes last year.

"The decrease was due to recent restrictions and discriminatory policy in Iran on palm oil imports," he told reporters after receiving a courtesy call from the Iranian members of Parliament here today.

The Iranian delegation was lead by head of Education and Research Commission of the Iranian Parliament, Mohammad Mahdi Zahedi.

Uggah said among the topics discussed were the significant fall in exports, misconceptions of the benefits of palm oil and the reduction in trade imbalance between the two countries.

He said the Malaysian Palm Oil Board (MPOB) and Malaysian Palm Oil Council were tasked to follow up with the Iranian authorities to solve palm oil-related issues.

"There is a suggestion to create a strategic collaboration between MPOB and research centre in Teheran to initiatie a research that probably can make them (Iranian) more convincing (on the benefits of palm oil)," he said.

He also said the ministry planned to send a delegation to Iran after the task was completed, probably end-2015.

Iran is among the major importers of Malaysian palm oil from the Middle East, placing the country in the top 10 Malaysia palm products importer list.

Palm oil registered as the major oils and fats consumed in Iran at 862,300 tonnes in 2013 followed by soyabean oil at 550,200 tonnes and sunflower oil at 247,200 tonnes.