JAKARTA. Indonesian Crude Palm Oil (CPO) exporters have the opportunity to sell their CPO to India, after the Indian government unofficially bans CPO purchases from Malaysia.
The ban is an impact of Malaysian Prime Minister Mahatir Mohamad's criticism of India's domestic policies towards Muslims. India itself is the largest buyer of Malaysian CPO in 2019, with total CPO purchases reaching 4.4 million tons.
According to a Reuters report, importers in India actually bought CPO from Indonesia, although at a premium price.
At present, the Malaysian Ministry of Primary Industry and the Ministry of Foreign Affairs are looking to solve the problem with India. If this tension does not subside, Malaysia has the potential to lose its CPO market in India. (KR/AR)