Malaysia-India Palm Oil Trade Likewise Back on Track

In January this year, a boycott was ordered in India on Malaysian palm oil after then-Malaysian Prime Minister Tun Dr. Mahathir Mohammad criticized India’s move to strip Kashmir of its special status and ‘invading and occupying’ it.  After Tun Mahathir was ousted in March by his successor and current Prime Minister Muhyidin Yassin, both countries have been trying to repair ties, although the progress for this is ‘taking time’.
  
According to MPOC data, India purchased just short of 400,000 MT of Malaysian palm oil in the six months between January to June 2020, an 85% drop year-on-year from nearly 2.6 million MT between January to June 2019.  In a clear sign that both countries are looking to repair frayed trade ties, Malaysia signed a deal with India to purchase 100,000 MT of Indian rice earlier this year, to which India reciprocated with a contract for 200,000 MT of Malaysian crude palm oil.