By Shakir Husain
NEW DELHI, Oct 15 (NNN-BERNAMA) — India’s leading vegetable oil importers have described media speculation that the government may restrict imports of Malaysian palm oil as bad for trade and sought a clear official stand on the matter.
Rumours and unsubstantiated claims published in the media harm business interests of both importers and exporters by creating uncertainty in decision-making and the supply chain, prominent trade figures told Bernama on Tuesday.
“It (the speculation) is causing confusion. We want the government to clarify its position as early as possible,” said Sandeep Bajoria, a former president of the Mumbai-based Solvent Extractors’ Association (SEA).
SEA current president Atul Chaturvedi said he is clueless whether the Indian government would take measures to limit palm oil imports from Malaysia.
“We have no clue. We have not heard anything officially. It will be a political decision, but so far we have no information,” he said.
Chaturvedi’s organisation represents India’s oilseed crushing industry.
Businesses are mindful of the harm the speculation is causing.
Bajoria said industry relationships built over a long period of time may become strained and cause disruptions in trade flows.
“It obviously creates problems for both sides. People cannot keep their business decisions on hold for long due to uncertainty,” he said.
Reuters earlier reported, citing unnamed sources, that India is considering punitive trade measures against Malaysia over Prime Minister Tun Mahathir Mohamad’s recent United Nations General Assembly remarks on the Kashmir conflict.
Malaysia’s palm oil exports to India last year were valued at US$1.65 billion, accounting for 18.3 per cent total Malaysian exports to the country.
— NNN-BERNAMA
