Disgruntled India weighs options on ties and palm oil amid #BoycottMalaysia campaign
- The diplomatic fallout from Malaysia’s criticism over Kashmir is spreading to the economy as Indian businesses shun their palm oil suppliers in favour of Indonesian alternatives
- With nationalists waging a social media campaign to boycott Malaysian imports, expectations are high that New Delhi will impose curbs or taxes
At least three importers said the uncertainty in bilateral relations had forced them to consider alternatives, while a government source who handles India’s trade ties with Southeast Asia struck a note of caution despite saying there was no official word on import curbs yet.
“Anything can happen. Maybe some restrictions will be imposed,” said the source, who did not want to be named as he was not authorised to speak on the matter.
B.V. Mehta, executive director of lobbying group the Solvent Extractors’ Association of India, which represents more than 875 businesses with a combined oil processing capacity of 30 million tonnes, said the Indian government was deeply upset with what officials saw as hostile comments from the Malaysians and would take action in response, “but what type of action is still not clear”.
“Just to safeguard business interests, most refiners and importers have moved from [buying from] Malaysia to Indonesia. After all, the price of palm oil from Indonesia is the same,” he said.
