Indonesia Reaps Benefits as India Ceases Imports of Malaysia’s CPO
Indian crude palm oil (CPO) importers stopped all purchases from Malaysia after the government urged them to boycott its products, Reuters reported on Monday (1/13). The warning, issued last week, comes in line with New Delhi's move to restrict imports of CPO and refined palm oil (palm olein) from Malaysia. Although there is no prohibition on buying Malaysian CPO, importers decide to comply with the instructions.
The restriction comes in the wake of Malaysia’s Prime Minister Mahathir Mohamad’s criticism over India's actions in Kashmir and its new Citizenship Act. India is the largest CPO importer in the world, which accounts for nearly two-thirds of India's total vegetable oil imports. Understandably, India bought more than nine million tons of CPO, mainly from Indonesia and Malaysia. At present, Indian importers do not purchase crude or refined palm oil from Malaysia's leading suppliers.