India is considering to restrict the import of Palm oil and other goods from Malaysia after the Malaysian Prime Minister Mahathir Mohamad comment on Jammu & Kahmir at UNGA (United Nations General Assembly).
According to government and industry sources, Government is planning to ban/restrict the import of Palm oil and other goods from Malaysia as Indian Government is angry with the Malaysian Prime Minister Mahathir Mohamad comment on Jammu & Kahmir at UNGA.
Malaysian Prime Minister Mahathir Mohamad said that India had Invaded & occupied Jammu & Kashmir and suggested India to solve this matter by talking with Pakistan. On August 5, India had abrogated Article 370 from state of Jammu & Kashmir and divided J&K in two Union territories.
After this Pakistan asked for support across all over the world but no country supported the Pakistan on this issue except Turkey & Malaysia. Turkey & Malaysia raised this issue at United Nations and supported the Pakistan.
Indian Government wants to send strong message to Malaysia and Turkey regarding this issue. India is the biggest importer of Palm oil from Malaysia, is now planning to restrict Palm oil import from Malaysia and considering Indonesia, Argentina and Ukraine as substitute of Malaysia.
India imports nearly 9 millions tonnes of Palm oil every year. According to the Malaysian Palm Oil Board, India was the biggest importer of Palm oil from Malaysia in 2019. India has imported 3.9 million tonnes of Palm oil from Malaysia this year.
India is looking Indonesia as an alternative of Malaysia for import of Palm oil. Indonesia is also eager to sell more and more palm oil to India and wants to buy sugar from India in exchange. Because of this reason, The prize of Palm oil fell by 0.9% in one day.
“The benchmark palm oil contract for December delivery on the Bursa Malaysia Derivatives Exchange that had earlier been trading up on the day, fell 0.9% to close at 2,185 ringgit ($522.23) per tonne,” Reuters reported
Actually, India imports huge amount of Palm oil from Malaysia and due to this reason, It helps Malaysia reduce stockpiles of Palm oil. If India stops the import of Palm oil from Malaysia then stockpiles could rise and prices could reduce under pressure.
India is also planning to stop import of goods from Turkey too.