Malaysia to strengthen trade ties with India after palm oil purchases resume after gap of four months

Malaysia voiced its commitment to further strengthen diplomatic and trade ties with India, after the world’s largest edible oil buyer renewed purchases of Malaysian palm oil, in a sign of improving relations between the two countries

Reuters May 21, 2020 11:39:16 IST
Malaysia to strengthen trade ties with India after palm oil purchases resume after gap of four months

Kuala Lumpur: Malaysia voiced its commitment to further strengthen diplomatic and trade ties with India, after the world’s largest edible oil buyer renewed purchases of Malaysian palm oil, in a sign of improving relations between the two countries.

Indian buyers contracted up to 200,000 tonnes of Malaysian crude palm oil for June and July, after a four-month gap following a diplomatic row.

Malaysia’s exports to India in January to April fell to 96,145 tonnes, down 94 percent from the same period in 2019, Plantation Industries and Commodities Minister Mohd Khairuddin Aman Razali said on Thursday.

Malaysia to strengthen trade ties with India after palm oil purchases resume after gap of four months

Representational image of palm oil seeds. Reuters.

But crude palm oil prices falling below Malaysia’s palm oil duty threshold level and New Delhi’s decision not to extend restrictions on refined palm oil imports have led to an increase in purchases, he said.

Malaysia, the world’s second-largest palm oil producer and exporter, slashed the June palm oil export duty to zero, lowering its price against rival Indonesian palm.

Click here to follow LIVE news and updates on stock markets

Palm oil futures traded on the Bursa Malaysia spiked 47 percent to 66,427 lots on Wednesday compared to the daily average of 45,200 lots last week, Mohd Khairuddin said.

He added that Malaysia’s readiness to address a trade deficit between the two countries has also led to more Indian buying.

Malaysia contracted to import a record 100,000 tonnes of rice from India for shipment this month and next.

“The government expects this positive development to strengthen palm oil prices in the market,” Mohd Khairuddin said, adding that it will also support the industry, especially smallholders.

Smallholders in Malaysia and Indonesia - which together account for 85 percent of global palm oil production - are reducing fertiliser use due to a plunge in fresh fruit bunch prices, a risk to next year’s output.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Grigor Dimitrov tests positive for COVID-19, Adria Tour exhibition event final cancelled
Sports

Grigor Dimitrov tests positive for COVID-19, Adria Tour exhibition event final cancelled

Grigor Dimitrov has tested positive for COVID-19, leading to the cancellation of an exhibition event in Croatia where top-ranked Novak Djokovic was due to play in the final.

Coronavirus Outbreak: ICMR says 'major milestone' achieved after number of labs conducting COVID-19 tests rises to 1,000
India

Coronavirus Outbreak: ICMR says 'major milestone' achieved after number of labs conducting COVID-19 tests rises to 1,000

ICMR said that this is a major milestone towards enhanced testing in India. According to the ICMR, there are 730 government labs and 270 private labs for the testing.

Cancer-stricken former boxer Dingko Singh recovers from COVID-19, placed under home isolation in Imphal
Sports

Cancer-stricken former boxer Dingko Singh recovers from COVID-19, placed under home isolation in Imphal

Having recovered from the extremely contagious disease after a month-long battle, Asian Games gold-winning former boxer Dingko Singh will be isolated at his Imphal residence for a fortnight.