Malaysia offers to buy sugar after Indian traders boycott palm oil import
After Indian vegetable oil industry's reservation in import of Malaysian palm oil, the Malaysian government has stepped in to solve the crisis by offering to buy larger quantity of sugar and buffalo meat from India.
The orders for Malaysian palm oil saw a significant dip following reports that the Government of India may take some action to curtail the palm oil import following Malaysia's hostile atitude at the United Nation on Kashmir issue.
Fearing some action by the Government of India, many importers and refiners shifted their buying from Malaysia to Indonesia for November-December shipments.
"The Malaysian Government is trying to cool down this issue by offering to buy larger quantity of sugar and buffalo meat from India. The confusion prevailing is not desirable and needs to be resolved immediately," Solvent Extractors Associaltion (Vegetable oil Industry association in India) said in a statement.
A significant portion of Malaysian economy depends on exporting palm oil to the Indian markets. India also needs palm oil from both Malaysia and Indonesia.
"It may not be prudent to depend on only one supplier. However, we would abide by whatever decision Government of India takes. Hopefully this crisis would be resolved," Indian vegetable oil industry body said.
