New Delhi: India has banned the import of palm oil only from Malaysia, while shipments from Indonesia and Nepal will be “fast-tracked” on a case-to-case basis, ThePrint has learnt.
The Ministry of Commerce and Industry issued a notification Thursday, restricting the import of refined palm oil into India with immediate effect. This gave rise to backlash from Indonesia and Nepal, which expressed their discontent with the decision. However, sources in the government told ThePrint that the move is targeted “only” at Malaysia, due to its series of statements against India.
An official, who did not want to be identified, said it would not be possible to issue a notification mentioning one particular country, as that would be in violation of global trading rules. He, however, said imports of palm oil (crude as well refined) from Indonesia and Nepal “will not be impacted at all”, with import licences to be issued on a case-to-case basis.
The official added that these licences will be granted automatically.
Importers dealing in palm oil from Indonesia and Nepal will have to clearly mention the source of import — and if it is from Malaysia, the shipment will be cancelled, the sources said.
Ministry of External Affairs spokesperson Raveesh Kumar said Thursday importers buying palm oil from abroad needed to keep in mind the “state of the relationship” between India and the other country.
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Souring India-Malaysia relationship
Sources said Indonesia will be the biggest beneficiary of the move, because Malaysia was so far India’s biggest supplier of palm oil. They also said Indian refiners are happy with the decision, because this will give them more leeway in the absence of cheaper imports of the commodity from Malaysia.
New Delhi had informally urged Indian importers Monday to not to import the commodity from Kuala Lumpur, which had been extremely critical of India’s move to scrap Article 370 and bifurcate Jammu and Kashmir into two union territories, as well as the amended law that grants citizenship to six non-Muslim groups from Pakistan, Afghanistan and Bangladesh.
Malaysian PM Mahathir Mohamad had questioned the citizenship law, expressing concerns that it might impact India’s secular image.
In October last year, at the UN General Assembly (UNGA), Mohamad had joined Turkey and China in criticising India’s decision on Kashmir — Mohamad accused the country of “invading and occupying Kashmir”.
The Narendra Modi government was also upset with Malaysia in 2016 when controversial Islamic preacher Zakir Naik fled India and took refuge there.
Also read: Malaysian PM’s comments on Kashmir spark unlikely battle in palm oil trade
In Malaysia several lakh Indians employed and their future jeopardized in the long run. Moreover lot of undocumented Indian workers employed in Malaysia deportation is also possible. Tit for tat.
Article is incomplete without giving the size of the market, impact in money terms and how does it affect bilateral trade surplus / deficit
Malaysia has a per capita income of $ 12,000. Despite recent issues with Saudi Arabia, an important Islamic country, along with Indonesia, outside the Middle East. One of the pillars of ASEAN, which is a major economic partner for India and also part of our equation with China. With India opting out of RCEP, losing the goodwill of an important ASEAN member is unhelpful to our role in the region. 2. The whole world does not have to agree with us on Kashmir. Our Kashmir policy seldom factors global reactions into its formulation. So criticism by Malaysia and Turkey, another important Muslim country, should have been taken in its stride. All said and done, we are not the hyper power America was when George Bush challenged the world, You are either with us or against us.