Malaysia-India spat clouding CPO prospects

Malaysia’s palm oil export to India had been growing steadily over the past few years.

India, the world’s largest edible oil buyer, has reportedly imposed import restrictions on refined palm oil and instructed traders to avoid palm oil-related purchases from Malaysia following a recent misunderstanding between the two countries’ governments.

Subsequently, Malaysian palm oil futures fell to their lowest in a month and recorded their lowest weekly decline since 2012, falling 7.8% during the week ended Jan 17, largely due to India’s import restrictions on Malaysian palm oil dragging the commodity’s price.