KUALA LUMPUR: Palm oil industry players have expressed concern over a report that India wants to reduce imports of the commodity from Malaysia.
They said even a small reduction in imports would have a significant effect on Malaysia’s palm oil inventory level and the economy as a whole.
In a research note, Public Investment Bank said India has been Malaysia’s biggest palm oil buyer since 2014, replacing China. In the first nine months of this year, it said, India made up 28% of Malaysia’s total palm oil exports.
“This year, Malaysian palm oil saw a significant rise in Indian market share, up from 28.7% to 57.8%, thanks to the preferential import duty on Malaysian refined palm oil for the first nine months,” the note said.
According to the primary industries ministry, last year India emerged as the country’s third largest export destination for palm oil and palm-oil based products worth RM6.84 billion.
For this reason, exporters and the Malaysian Palm Oil Board are waiting to see if there is any truth to the report.
The Indian government move is believed to be because of Putrajaya’s allegation that India had “invaded and occupied” Jammu and Kashmir and advice to New Delhi to work with Pakistan to resolve the issue during the United Nations General Assembly last month.
A Reuters report, quoting unnamed sources, said the Indian government planned to retaliate by proposing to limit its palm oil imports and might place restrictions on other goods from Malaysia.
India is said to be planning to substitute Malaysian palm oil with supplies of edible oils from countries like Indonesia, Argentina and Ukraine.
Bernama reported yesterday that palm oil importers in India were themselves in the dark about the situation, which they described it as speculation.
“The speculation is causing confusion,” Sandeep Bajoria, a former president of the Mumbai-based Solvent Extractors’ Association (SEA), said.
Current SEA president Atul Chaturvedi said he was clueless on whether the Indian government would take measures to limit palm oil imports from Malaysia.
The Indian High Commission here declined to comment.
An Indian daily also said the country’s food ministry was firming up a proposal to increase integrated GST (IGST) on imported refined palm oil to 12% to offset the impending cut in import duty on the commodity from January 2020.
Yesterday, the primary industries ministry said that Malaysia was exploring the possibility of sourcing raw sugar from India starting next year as a way to enhance bilateral relations.
The minister, Teresa Kok, also said Malaysia is looking into importing more buffalo meat from India to meet the increasing local demand. - FMT
Dear Sir,
ReplyDeleteZakir Naik's news spread all over the world and no one believes him because he is created big noise in india as well in your country.How it affects on imports and exports because of this man. That Zakir naik not thinking about growth of economy of the nation he trying collapse nations economy directly / indirectly to creating noise in the nation where he stays.
Better to shift him to some other country or his birth country is safe and clean for the nation for further growth by economically and socially.
This Zakir Naik is waste man on earth and nothing contribution for national income where he stays. He is not working physically and mentally. The nation giving him food and shelter is totally liability on the nation.
Better to give him mason work then only he understand the struggle of life.
Better to kick him soon is good for Malaysia and malaysia is good country the relationship between india and malaysia is so nice we imports lots of pam oil because of india a largest populus country.
regards
Bharat
Our Indian Government eagerly wants Zakir Naik hiding in malaysia.If malaysia send him to india definitely your Pam Oil Exports goes peak level
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