India’s palm oil import decreased in 3 % from a year ago in November
Concerns on Malaysia’s oil tax increase are growing.
November palm oil import to India reached about 672,000 tonnes – its lowest since July 2018. Surprisingly though, the import was almost 780,000 tonnes a month ago. Indian refiners almost stopped any palm oil purchase from Malaysia fearing New Delhi could increase import taxes or apply further import measures after Malaysia criticized New Delhi for its steps in Kashmir autonomy.
If New Delhi reaches out for such a decision, it will strengthen Malaysia. And that is because New Delhi imports mainly from Malaysia and Indonesia which makes India dependent of Kuala Lumpur. What remains unclear is whether Indonesian capacities could meet India’s demands. India is the world’s biggest importer of edible oils. Apart from palm oil, New Delhi imports soy oil from Argentina and Brazil and sunflower oil mainly from Ukraine and Russia.