24 October 2019

 

Predictions

  • Trade dispute with India unlikely to escalate, but highlights growing risk of politically driven business disruption
  • Government will seek to ease tensions with…
  • Growing nationalist sentiment globally will drive…

 

Analysis

The Solvent Extractors’ Association of India (SEAI) – the country’s main palm oil trade body – asked members on 21 October to stop purchasing Malaysian palm oil. The SEAI President specified this was because Prime Minister Mahathir said at the UN last month that India had wrongly invaded and occupied Kashmir. The SEAI President also claimed the Indian Government was “contemplating retaliatory action” over Mahathir’s comments. This followed reports on 11 October that Delhi was planning to restrict imports of some Malaysian products, including palm oil, though the Indian Commerce Ministry did not confirm this. In response to the SEAI directive, Primary Industries Minister Teresa Kok said the SEAI should allow both governments to resolve the situation, after she previously offered…

Source: Malaysian Palm Oil Board

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