There was a discussion for a two-way deal under which India will give priority to import palm oil from Indonesia against which the latter was offering to buy raw sugar from here
This comes after Malaysia's Prime Minister criticised India's actions in Kashmir and its new citizenship law
The Indian Ministry of Commerce and Industry issued a notification on Wednesday declaring that the import of refined palm oil is amended from 'Free' to 'Restricted'
The move comes against the backdrop of remarks by Malaysia on the new citizenship law and Kashmir issue
Malaysian palm oil is available at a $5 discount amid congestion at Indonesian ports
The first decline in three months of growing purchases by India, the world's biggest importer, may boost inventories in top producers Indonesia and Malaysia
Such a move by India could reduce refined palm shipments from top producers Indonesia and Malaysia
The two commodity heavyweights have set a target to double trade to $50 billion in 2025
Malaysia is the world's second largest producer and exporter of palm oil after Indonesia, and the edible oil contributed to 2.8% of its gross domestic product last year
Palm was down 2.9 percent on-week for a second weekly decline
Industry players expect the tax hike on refined palm oil to cause Indian buyers to switch to importing crude palm oil
India imports palm oil mainly from Indonesia and Malaysia
Data released by a state millers association earlier this week showed slower output growth for the first 20 days of August compared with a month earlier
Malaysian exports of refined palm oil to India, the world's biggest importer of edible oils, jumped 727% in the first half of 2019 to 1.57 million tonnes compared with the same period a year before
The world's top producer of crude palm oil produced 2.8 million tonnes tonnes of the edible oil last year
Will cap cultivated area at 6 mn hectares after EU's call to classify the oil as unsustainable, and for its exclusion from the bloc's biofuels target
Trading volumes stood at 52,177 lots of 25 tonnes each at the end of the session
The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange fell 0.9 per cent to 2,163 ringgit ($528.21) a tonne at the close of trade
Duty on crude palm oil lowered to 40% from 44%, and a tax on the refined variety cut to 50% from 54%
India imports palm oil from Malaysia and Indonesia.