Mahathir stands by Kashmir comments amid India palm oil boycott, says countries should abide by UN resolutions

‘We speak our minds and don’t retract or change,’ the Malaysian leader told reporters although he acknowledged the boycott could exacerbate what he described as a trade war between both sides

Meanwhile, another Malaysian minister warned that new rules from the European Union could hurt demand for palm oil in food products, dealing a huge blow to the industry

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Harvested palm oil fruits are seen on a plantation. Photo: Reuters

Published: 12:05pm, 22 Oct 2019Updated: 2:57pm, 22 Oct 2019

Malaysian Prime Minister Mahathir Mohamad said on Tuesday he would not retract his criticism of New Delhi’s actions in disputed Kashmir despite Indian traders calling for an unprecedented boycott of Malaysian palm oil.

The impasse could exacerbate what Mahathir described as a trade war between the world’s second biggest producer and exporter of the commodity and its biggest buyer so far this year.

India’s top vegetable oil trade body on Monday asked its members to stop buying Malaysian palm oil after Mahathir said at the United Nations General Assembly last month that India had “invaded and occupied” Kashmir, a disputed Muslim-majority region also claimed by Pakistan.

Indian Prime Minister Narendra Modi’s government removed the long-standing autonomy of India’s portion of the Kashmir valley on August 5, calling it an internal matter and criticising countries that have spoken out against the move.

We speak our minds and we don’t retract or change

Mahathir Mohamad

“We speak our minds, and we don’t retract or change,” Mahathir told reporters outside parliament. “What we are saying is we should all abide by resolutions of the [United Nations]. Otherwise, what is the use of the UN?”

The UN Security Council adopted several resolutions in 1948 and in the 1950s on the dispute between India and Pakistan over Kashmir, including one that said a plebiscite should be held to determine the future of the region.

The Solvent Extractors’ Association of India said in a statement on Monday that traders should in their “own interest as well as a mark of solidarity with our nation ... avoid purchases from Malaysia for the time being.”

Pressed palm oil is tested in a laboratory at the Malaysian Palm Oil Board research plantation. Photo: Bloomberg

Mahathir said Malaysia, the world’s second-biggest producer of palm oil behind Indonesia, would study the impact of the boycott and look at ways to address the issue. New Delhi has so far refused to comment on the trade spat.