Malaysia signed a pact on Thursday for exports of palm oil to South Asia next year, as Indian refiners resumed buying the edible oil after a gap of nearly a month. In October, India’s top vegetable oil trade body had told members to stop buying palm oil from the world’s second largest producer and exporter of the commodity, after remarks by Malaysia’s prime minister on disputed Kashmir stirred anger. But five traders said on Thursday that purchases have resumed, with around 70,000 tonnes of shipments contracted in December after Kuala Lumpur began offering a US$5 per tonne discount over supplies from rival Indonesia. The resumption in purchases by India, the biggest buyer of Malaysian palm oil this year, could support Malaysian palm oil prices, which are trading near their highest level in two years. Meanwhile, the preliminary pact signed by Malaysia with Dubai-based Hakan Agro DMCC, could lead to more than 1 million tonnes of palm oil being exported in 2020 to its core South Asian market, Malaysian minister Teresa Kok said in a statement. Mahathir stands by Kashmir comments amid India palm oil boycott October’s directive to members of the Solvent Extractors’ Association of India followed remarks by Malaysian Prime Minister Mahathir Mohamad to the UN General Assembly that India had “invaded and occupied” Muslim-majority Kashmir, which is also claimed by neighbouring Pakistan . On August 5, Prime Minister Narendra Modi ’s government stripped India’s portion of Kashmir of its long-standing autonomy , calling the move an internal matter and criticising countries that voiced concern. India, the world’s biggest importer of edible oils, also buys palm oil from Indonesia, soybean oil from Argentina and Brazil , and sunflower oil from Ukraine . India was Malaysia’s third-largest export destination last year for palm oil and palm-based products. Malaysia signed another pact with China ’s Bohai Commodity Exchange for the export of 1.5 million tonnes of its palm oil by 2020.