MALAYSIA will use diplomatic channels to overcome India’s restrictions on palm oil imports, said Teresa Kok.

The primary industries minister said Putrajaya is also eyeing new markets for the commodity, among them Uzbekistan, Kazakhstan, Nigeria, South Africa, Pakistan and Saudi Arabia.

Her comments come after India – Malaysia’s biggest customer for palm oil – imposed curbs on refined palm oil imports, with New Delhi saying the move is to protect local millers.

The restrictions do not affect Malaysian exports of crude palm oil (CPO) to the South Asian country.

“We are engaging officials and stakeholders to find the best way to tackle this matter. We are also expanding new markets for exports,” Kok told reporters after opening a palm oil industry seminar in Kuala Lumpur today.

India bought 4.41 million tonnes of palm oil products from Malaysia last year.

Last week, India increased its tax on imported refined palm oil to 45%. The tax on CPO is kept at 37.5%.

New Delhi has also reclassified imported refined palm oil from “free” to “restricted”.

Industry players have said the decision will impact Malaysia, which sells more refined palm oil than CPO to India.

Malaysian Palm Oil Board director-general Ahmad Parveez Ghulam Kadir said the difference in taxes for the two types of palm oil will lead to a slight drop in exports this year.

“But, we still do not know what they mean by restricted access for refined palm oil, whether this means they will impose a quota on how much we can export.”  – January 16, 2020.