Malaysia considers restrictions on palm oil purchases by India temporary and insignificant

The topic of restricting purchases of crude palm oil from Malaysia by Indian processors following a 20% increase in import duties is seen as a temporary measure, said Malaysian Plantations and Commodities Minister Datuk Seri Johari Abdul Gani. He said it would not have a significant impact on exports and emphasized that India, being the largest oil consumer in the world and having a large population, remains an important market for Malaysian palm oil, Business Times. reported.

“I am confident that any such measures are temporary as India continues to be a key partner for our palm oil. Malaysia will continue to supply high quality products,” he added at a press conference after the Malaysian Palm Oil Forum (MPOF).

Asked about the possibility of asking the Indian government to reduce import tax, Johari said Malaysia respects the decisions of each consuming country, which has the right to determine its tax policy. “The tax issue is related to the specific circumstances of that country and we cannot interfere in their decisions,” he said.

Earlier, Indian oil refineries canceled orders for 100,000 tons of palm oil scheduled for October to December following New Delhi’s decision to raise import duties on palm oil and other edible oils. India normally imports about 750,000 tons of palm oil per month, the canceled orders accounted for 13.3% of total imports.

India gets palm oil mainly from Indonesia, Malaysia and Thailand. Meanwhile, Johari said Malaysia is open to palm oil trade with other countries including Russia, the Middle East and Africa. He added that there are still many opportunities for Malaysia to develop and expand the palm oil industry with a focus on sustainable development.

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Tags: India, Malaysia, palm oil