Why palm oil became important between India and Malaysia - AB TAK NEWS

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Sunday, 19 January 2020

Why palm oil became important between India and Malaysia

Why palm oil became important between India and Malaysia


The World Economic Forum will meet in Davos, Switzerland from 21 to 24 January.  It is discussed that on the sidelines of this meeting, Malaysia's Commerce Minister Darrell Leiking and India's Commerce and Industry Minister Piyush Goyal can meet.

 According to the news agency Reuters, a spokesman for the Government of Malaysia has given this information.  However, according to Reuters, the Commerce Ministry official has denied plans to have such a meeting due to a busy schedule.

 The meeting is being discussed because after the statement of Malaysia's Prime Minister Mahathir Mohammad against India, there is a commercial confrontation between the two countries at the center of which - palm oil i.e. palm oil imported from Malaysia in India  .

 Relations between the two countries have come under strain following Prime Minister Mahathir Mohammed's statement on the Indian government's neutralization of Article 370 granting special status to Jammu and Kashmir and introducing a new citizenship law (CAA).

Relations between India and Malaysia started coming in from September last year.  In the United Nations General Assembly, Mahathir Mohammed said that despite the proposal of a united nation, India has occupied Jammu and Kashmir.

India rejected it and said that Mahathir's statement is not based on facts.  Since then, there was a discussion that the Government of India can take strict action against Malaysia.

 After this, the business of palm oil came in the news and there was talk of tension between the two countries on the import of palm oil.

 At the same time, the Solvent Extractors Association of India (SEA) had advised its 875 members to refrain from purchasing palm oil from Malaysia.  The reason behind this was the tension of the two countries.

Another statement from Malaysia

 Even after this, the attitude of Malaysia did not change and Prime Minister Mahathir once again gave a displeasing statement to India.

 In December last year, Mahathir Mohammad expressed concern about the CAA.  He had said, "I feel very sorry to see that India, which claims to be secular, is denying citizenship to some Muslims. People are already dying because of this law, so now to implement it  What is the need when everyone has been living together as a citizen for almost 70 years. "

 Protests have been held in India too, calling the CAA discriminatory on religious grounds.  However, it is also being supported.

 India again termed Mahathir's statement as 'wrong on the basis of facts' and asked him to refrain from speaking on India's internal affairs.

At the beginning of January, India changed its rules and changed refined palm oil from 'free' to 'limited'.

 However, Foreign Ministry spokesman Ravish Kumar said that the rules have not been changed keeping in mind any country.  However, he believed that any kind of business between two countries depends on their relationship.

 Since then, there were reports in the media that the Indian government has informally forbade its traders to buy palm oil from Malaysia.

 Mahathir Mohammad has been saying that he will not bow down, but in spite of this the business of palm oil has increased his concerns.

Importance of palm oil

 Malaysia is the second largest palm oil producer and exporter in the world after Indonesia.  Palm oil is used all over the world, from cooking to biofuels, noodles, pizza flour and lipstick.

 Till 2019, India was the biggest buyer of Malaysia's palm oil and according to official Malaysian figures, the trade between the two was over 4 million tonnes.

 BV Mehta, executive director of the Solvent Extractors Association of India, says that since Mahatir Mohammed's statement on Kashmir, many of his members have started doing business with Indonesia cautiously.

 BV Mehta said, "It seems to us that the Indian government may impose tariffs (import duties) or other restrictions due to the ongoing tension between the two countries."  We do not want to get caught in the middle of all this.

This change is also reflected in the recent data.  However, there may be other reasons behind the decrease in exports from Malaysia such as increase in export tax.

 Imports of palm oil from Malaysia in India fell from 310,648 tonnes to 138,647 tonnes in September 2019.

 The Times of India, in a report on January 15, also quoted an unnamed source as saying that India may also ban the import of microprocessors after palm oil.

Economic response

 Experts believe that this step of India is like answering on an economic level.  China generally adopts this method.

 A report published in the Times of India on January 9 read, "India has lost patience considering Mahathir Mohammed's statement as provocative and it looks like India may impose some sanctions after meeting Muslim countries of Malaysia in Kuala Lumpur  is."

 On January 15, the editor of foreign affairs in the English newspaper Mint, Elizabeth Roche wrote, "As India's economic dominance grows, it will ban itself for countries that are not sympathetic to their concerns and core interests."  Is preparing

 Former Ambassador Vivek Katju wrote in the Hindi newspaper Hindustan on January 16 that Mahathir had "ignored the first principle of international relations" by "interfering" in India's "internal affairs".

 Speaking to Mint on 15 January, former Foreign Ministry official Kanwal Sibal said that the move was "a way of showing displeasure over the statements of Mahathir" as he considered it against India's "core national interests".  .

Malaysia's answer

 Thousands of farmers in Malaysia depend on exports of palm oil for their livelihood and Mahathir Mohammad has maintained that his government has said that his government will find a solution.

 The Malayalam daily Mail in Kuala Lumpur made a statement on January 14 quoting Mahathir Mohammad, "Of course we are worried about this because we sell a lot of palm oil to India. But, on the other hand we need to speak even if something goes wrong.  Is. If we allow the wrong things to happen and just think about the money then a lot of things will go wrong. "

 The Trade Union Congress of Malaysia appealed to both countries to resolve the matter diplomatically.

 Malaysia's primary industry minister Teresa Kock said on 16 January that it was necessary to connect India with diplomatic channels with relevant stakeholders and businessmen.

 According to some media reports, Malaysia is trying to sell palm oil in other countries, but it will not be easy to replace India.


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