Malaysia to purchase more Indian sugar to solve palm oil issue

KAULA LUMPUR: The top sugar supplier of Malaysia said it would expand commodity purchases from India, which is part of efforts, to placate New Delhi despite an ongoing spat over palm oil imports. Sources claimed.

MSM is the sugar refinement arm of FGV, the world’s largest palm oil producer, a unit of the Malaysian government-owned Federal Land Development Power or Felda. The firm has not cited the controversy over palm oil as a justification for expanded sales.

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India, the world’s largest purchaser of edible oil, effectively delayed Malaysian palm oil imports this month, reportedly in retaliation against the comments of Malaysian Prime Minister Mahathir Mohamad criticizing New Delhi for its Kashmir policy.

However, the two analysts, who are connected with the company’s procurement negotiations with the government, said it was an attempt to satisfy India, asking Malaysia to reduce the country’s trade deficit.

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Earlier, Malaysia has said that it would seek other markets to sell more palm oil but this may not be simple as India has been Malaysian palm oil’s largest importer for the past five years, buying 4.4 million tons in 2019.