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Impact of India’s move on Malaysian palm oil seen minimal

KUALA LUMPUR: The quantity of refined palm oil exports from Malaysia to India is relatively small, roughly US$300mil a year.

Therefore, any restriction on Indian palm oil importers to buy the commodity from Malaysia would only have a minimal impact on the latter, according to Standard Chartered.
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“In the end, India has to buy it from somewhere and essentially if the ban is strictly enforced they will be buying at higher prices, ” Asean and South Asia Global Research chief economist Edward Lee told reporters at a research briefing here.

He said overall, crude palm oil prices would be supported in that sense.

“It is going to be supportive of Malaysian exports and also its current account, ” he said

It was reported that India’s commerce and industry ministry had issued a notification declaring that the import of refined palm oil has been amended from “free” to “restricted”.

However, Primary Industries Minister Teresa Kok dismissed reports that India had called for a restriction on Malaysian palm oil

“What boycott? They just want us (Malaysia) to export more crude palm oil and reduce the export of refined palm oil, ” she told reporters during a dialogue session with Selangor oil palm growers in Kuala Selangor recently.— Bernama

Source: https://www.thestar.com.my/business/business-news/2020/01/16/impact-of-indias-move-on-malaysian-palm-oil-seen-minimal