India is the biggest importer of palm oil in the world. India imports more than 9 million tonnes annually mainly from Indonesia and Malaysia. India has been buying palm oil from Malaysia for the last five years and is the biggest market in Malaysia. But in recent days the Prime Minister of Malaysia has criticized India’s new laws in Kashmir and CAA. As a result, the import of palm oil from Malaysia has been restricted. Though no official announcement has been made by the government officials but all the oil importers of India are purchasing oil from Indonesia. According to the local oil importers in India, the government says that they can import the oil from Malaysia but the government should not be held responsible if the oil gets stuck at the port as in Mumbai ports and Calcutta ports. Tonnes of oil cargoes has been stuck at the Mumbai ports as no oil importer is importing the oil from Malaysia. Indonesia, on the other hand is getting benefited as India is buying all the oil from Indonesia- the world’s largest exporter of crude palm oil (CPO). India’s import restrain will also affect Malaysia as in 2019 India purchased 4.4 million tonnes of oil but now it can reduce to less than 1 million tonnes in 2020.
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