Mumbai: After nearly a month’s gap, Indian refiners have resumed buying Malaysian palm oil. India contracted around 70,000 tonnes of shipments in December as Kuala Lumpur has been offering a $5 per tonne discount over supplies from rival Indonesia.
Malaysian Prime Minister, Mahathir Mohamad, at the United Nations said that India had “invaded and occupied” Jammu and Kashmir and asked New Delhi to work with Pakistan to resolve the issue. Although India has not made any official remarks on the import of palm oil, Indian refiners stopped purchases from Malaysia last month assuming that New Delhi could raise import taxes or enforce other measures to control the imports.
India buys more than 9 million tonnes of palm oil mainly from Indonesia and Malaysia. Palm oil is crucial for Malaysian economy as well as it accounted for 2.8 percent of Malaysia’s gross domestic product last year.