India's April-Sept edible oil imports drop 19 percent

The value of India's edible oil imports in the first six months of the current financial year dropped almost 19 percent, the Commerce and Industry Ministry said.

Palm oil from Indonesia and Malaysia command the largest share in India's overall vegetable oil imports. Indian refiners have resumed buying Malaysian palm oil after a gap of nearly a month as Kuala Lumpur has been offering a US$5 (RM21) per tonne discount over supplies from rival Indonesia, Reuters reported last month.

The resumption in purchases by India, the biggest buyer of Malaysian palm oil this year, could support Malaysian palm oil prices, which are near their highest in two years.

Palm oil is crucial for the Malaysian economy as it accounted for 2.8 percent of Malaysia's gross domestic product last year and 4.5 percent of total exports.

Indian refiners stopped purchases from Malaysia last month, fearing New Delhi could raise import taxes or enforce other measures to curb imports after Kuala Lumpur criticised New Delhi for its actions in Kashmir.

Indonesia is the world's biggest producer of palm oil, followed by Malaysia.

In October, India's top vegetable oil trade body told members to stop buying palm oil from Malaysia in a call aimed at helping New Delhi punish the country for criticising India over its policy towards Kashmir.

India's government was angered after Malaysian Prime Minister Dr Mahathir Mohamad said at the United Nations that India had "invaded and occupied" Jammu and Kashmir and asked New Delhi to work with Pakistan to resolve the issue.

India imported 5.87 million tonnes of edible oil valued at US$3.59 billion (RM15) between April and September, representing a decline of 18.8 percent over the corresponding period last year.

Minister Piyush Goyal told Parliament in a written reply yesterday that India, the world's biggest importer of vegetable oils, imported about 12.5 million tonnes of crude edible oil worth US$8.22 billion (RM34 billion) in the 2018-19 financial year (April-March).

This was 14.17 percent less in value than what India imported in 2017-18. 

-- Bernama