KUALA LUMPUR, Jan 15 — The quantity of refined palm oil export from Malaysia to India is relatively small, roughly US$300 million a year.
Therefore any restriction for Indian palm oil importers to buy the commodity from Malaysia would only have a minimal impact on the latter, according to Standard Chartered.
“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 today.
He said overall, crude palm oil prices would be supported in that sense.
“It is going to be supportive of Malaysian export 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 had 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