India’s boycott of palm oil not likely to last long, says Azmin

Economic Affairs Minister Azmin Ali says he is confident India and Malaysia can resolve the palm oil boycott issue amicably.

KUALA LUMPUR: Economic Affairs Minister Mohamed Azmin Ali said the palm oil boycott by India will not last long as Indonesia may not be able to meet the entire needs of the country.

“It will not prolong. Indonesia does not have enough for the Indian market and we are confident we can settle this issue amicably.

“At the same time, we are in discussion with other countries to sell our palm oil,” he said while wrapping up his ministry’s debate on the 2020 Budget today.

However, Azmin said Putrajaya will continue to speak up on the issue of human rights.

Indian traders are reported to be sourcing for more palm oil from Indonesia following a recent advisory by the country’s top vegetable oil trade body to its members to refrain from importing the commodity from Malaysia.

Prime Minister Dr Mahathir Mohamad had, in his speech at the United Nations General Assembly in New York last month, said that despite the UN resolution on Jammu and Kashmir, the region had been invaded and occupied.

This caused an outrage among Indian citizens, who called for a boycott of Malaysian products.

Azmin was replying to Awang Salahudin Hashim (PAS-Pendang), who said India was the biggest buyer of Malaysian palm oil and asked what the government planned to do if the boycott continued.

Ahmad Hamzah (BN-Jasin) also raised concerns over the boycott and advised the government not to take it lightly.

Azmin said Putrajaya viewed the matter seriously but the government needed to handle it carefully “so that it will not worsen”.

He said the Malaysian high commissioner to India was also trying to resolve the issue.

To a suggestion by Edmund Santhara (PH-Segamat) to place a special ambassador to India – since Malaysia’s special envoy to China had benefited trade – Azmin said there was no need to do so at the moment as all ministries could help to sell palm oil to other markets.

Data from the Malaysian Palm Oil Council shows that Malaysia shipped 3.91 million tonnes of palm oil to India in the first nine months of the year.

Last year, India bought RM6.84 billion worth of palm oil and palm-based products, making up 10% of total exports. - FMT