Malaysia to use 'diplomatic ties' to resolve palm oil export concerns with India
New Delhi : Malaysia will be using diplomatic ties as it aims to resolve some concerns over palm oil exports. Notably, India had placed in some restrictions last week.
"This year, we foresee more challenges in some of our major markets," Teresa Kok, the Southeast Asian nation's primary industries minister, told an industry conference.
One of the key concerns of Malaysia is the restrictions India has imposed on RBD palm oil, she added, referring to refined palm oil.
India, the world's biggest buyer of edible oils, last week placed curbs on imports of refined palm oil and has informally asked traders to stop importing all kinds of palm oil from Malaysia, the world's second-biggest producer and exporter of palm oil.
"Despite these developments, the ministry will continuously engage these markets, including through diplomatic channels, to seek amicable solutions to restore market confidence and further strengthen existing and potential markets."
Malaysia aims to boost palm oil use for biodiesel to 1.3 million tonnes a year through the B20 and B7 programmes for the transport and industrial sectors, she added.
In some good news for Malaysian palm sellers, Bangladesh's farm minister told Reuters his country was open to buying more from Malaysia if it offers competitive rates.
The South Asian country buys mainly from Indonesia, which is expected to be the biggest beneficiary of the Malaysia-India dispute.