• Wednesday, January 29, 2020

India effectively stops all Palm Oil imports from Malaysia - Nasdaq

Discussion in 'Central & South Asia' started by Zapper, Jan 14, 2020.

  1. Zapper

    Zapper FULL MEMBER

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    Indian palm oil importers have effectively stopped all purchases from Malaysia after the government privately warned them to shun product from the country following a diplomatic spat, industry and government sources said.
    [​IMG]
    The warning, issued last week, comes almost in parallel with New Delhi's move to restrict imports of refined palm oil and palmolein after Malaysia's Prime Minister criticised India's actions in Kashmir and its new citizenship law.

    Currently, Indian buyers are not making any crude or refined palm oil purchases from top supplier Malaysia, at least five industry sources familiar with the matter told Reuters.


    "Officially there is no ban on crude palm oil imports from Malaysia, but nobody's buying due to government's instructions," said a leading refiner, adding that buyers now import from Indonesia despite paying a premium to prices in Malaysia.

    India is the world's largest buyer of palm oil and the move to effectively block imports from Malaysia could put pressure on palm oil prices in Malaysia and push up palm oil inventories in the country.

    Malaysian prices FCPOc3 set the global benchmark for palm oil prices. The move could also benefit Indonesia - the world's largest exporter of crude palm oil (CPO).

    "We could import CPO from Malaysia, but the government has warned: 'Don't come to us if your shipments get stuck,'" said a Mumbai-based trader, adding "no one wants to see their shipments get stuck at ports."

    India's government has not made any public remarks about Malaysian palm oil. The commerce ministry did not immediately respond to a request for comment on Monday.

    Palm oil accounts for nearly two-thirds of India's total edible oil imports. India buys more than 9 million tonnes of palm oil annually, mainly from Indonesia and Malaysia.

    Indian refiners and traders have shifted almost all palm oil purchases to Indonesia, despite having to pay a $10 per tonne premium over Malaysian prices, four traders told Reuters.

    Malaysian crude palm oil for February shipment was available at $800 a tonne on a free-on-board (FOB) basis, compared to $810 from Indonesia, traders said.

    "Like everyone else, we are paying a premium for Indonesian supplies. For a small profit we can't gamble," said a refiner based at Kolkata

    https://www.nasdaq.com/articles/exc...-against-malaysian-imports-sources-2020-01-13
     
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  2. OldenWisdom...قول بزرگ

    OldenWisdom...قول بزرگ FULL MEMBER

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    I think Indonesia has a great opportunity to make a few bucks here... they should raise their prices further.
     
    Last edited: Jan 14, 2020
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  3. Imran Khan

    Imran Khan PDF VETERAN

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    lolllzzz cry baby india when you will take your cheap labor from Malaysia too ?
     
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  4. khansaheeb

    khansaheeb SENIOR MEMBER

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    Pakistan should import the palm oil from Malaysia.
     
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  5. Protest_again

    Protest_again FULL MEMBER

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    As soon as Malaysia takes decision to replace them with Pakistani cheap labour. Lol
     
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  6. Imran Khan

    Imran Khan PDF VETERAN

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    Below are the 15 countries that spent the most on imported palm oil during 2018.

    1. India: US$5.5 billion (17.5% of total palm oil imports)
    2. China: $3.4 billion (10.8%)
    3. Pakistan: $1.9 billion (6.1%)
    4. Netherlands: $1.8 billion (5.7%)
    5. Spain: $1.3 billion (4.2%)
    6. United States: $1.1 billion (3.6%)
    7. Bangladesh: $1 billion (3.3%)
    8. Italy: $997 million (3.2%)
    9. Russia: $748.4 million (2.4%)
    10. Egypt: $686.2 million (2.2%)
     
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  7. OldenWisdom...قول بزرگ

    OldenWisdom...قول بزرگ FULL MEMBER

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    Malaysian are willing to barter oil for other products... this is something where Pakistan can reduce it's import bill and barter for military equipment or other products Malaysians need...
     
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  8. Zapper

    Zapper FULL MEMBER

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    India is Malaysia's biggest purchaser of palm oil. Now that we have effectively stopped all palm oil imports from Malaysia, this will only result in building up their palm oil reserves. Also, Pak is no match to replace India in this regard

    upload_2020-1-13_21-6-32.png

    Pak already does and is the 3rd largest importer of Malaysian palm oil

    We do what is advantageous to us and what would dent them. Why'd we wanna pull back our work force when there's inflow of remittances!! Also, Tamilians are the largest Indian sect in Malaysia, forming the 3rd largest group after Malays & Chinese with most of the current generation born there. They've been embedded in the society and are naturalized citizens
     
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  9. Pakistan Space Agency

    Pakistan Space Agency BANNED

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    Aa long as Indians are paying another Muslim country for the same thing, all good. Best of luck Indonesia.
     
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  10. Type59

    Type59 FULL MEMBER

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    Stamp produce of Indonesia on palm oil from Malaysia.
     
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  11. SrNair

    SrNair ELITE MEMBER

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    We didnt send them.
    If they are illegal they can send them back and if they are legal and still try to send back then we will use next options .
    Cooperation is a two way bridge .
    If they are not respecting it then we also dont have to.

    Mahathir gets unnecessarily involved in matters that doesnt concern him.
     
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  12. Alternatiiv

    Alternatiiv SENIOR MEMBER

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    I am calling bs on the article.

    If it is true, watch prices commercial prices of palm oil based product shoot up in public. The reason India is biggest importer of palm oil is because its the cheapest one out there, strains the public less.
     
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  13. SrNair

    SrNair ELITE MEMBER

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    We dont have any issue with that.
    We have alternatives like coconut
     
  14. Vikki

    Vikki BANNED

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    This old fellow mahathir wanted to be a hero in Pakistan.. is he or his country powerful than Saudi or US ?when those countries kept their mouths shut knowing the huge market India has,why this old fellow has to unnecessarily open his mouth regarding issues which are not relevant to him..we should hit him even harder...we shouldn't spare turkey too.
     
  15. Rajputana_

    Rajputana_ FULL MEMBER

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    So india getting into the sanctions game huh.

    Right outta usa playbook, hit them where it hurts!
     
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