NEW Delhi has distanced itself from a move by a top edible oils group in the South Asian nation to halt palm oil imports from Malaysia, reports The Times of India.

Indian Commerce Minister Piyush Goyal told the daily “the government has no view, maybe they (the traders) did not like Malaysia’s stand (on Kashmir).”  

Piyush was responding to a directive by the Solvent Extractors’ Association of India (SEAI), a group that processes vegetable oils, to stop buying palm oil from Malaysia.

SEAI issued the directive to its members following Prime Minister Dr Mahathir Mohamad’s critical comments on Jammu and Kashmir.

India is Malaysia’s top destination for palm oil products, according to data from the Malaysian Palm Oil Council (MPOC).

In 2018, exports to India amounted to 2.514 million tonnes followed by China at 1.860 million tonnes. 

“In your own interest as well as a mark of solidarity with our nation we should avoid purchases from Malaysia for the time being. We trust you would heed our advice,” SEAI said in a statement.

In September, Prime Minister Narendra Modi’s new government in a widely criticised move stripped the autonomy granted to its portion of Kashmir, imposed a curfew and arrested the disputed region’s political leaders.

In response, Dr Mahathir said India has “invaded and occupied” Kashmir and called on the South Asian nation to work with Pakistan to resolve tensions in the region.  

Following Dr Mahathir’s comments, SEAI issued a directive to its members “to avoid purchases from Malaysia for the time being”.

“There is uncertainty among traders and as a precaution, we have told them not to go for new contracts till there is clarity,” B.V. Mehta was quoted as saying.

The decision, he said, was in national interests.

Primary Industries Minister Teresa Kok urged for calm among all players in the industry, calling on SEAI to reconsider its directive. – October 24, 2019.