As Kuala Lumpur Offers huge discounts, India Resumes Buying Malaysian Palm Oil after a break of more than one month. Last month Indian refiners stopped the import from Malaysia fearing New Delhi could raise import taxes or enforce other measures to curb imports after Kuala Lumpur criticized New Delhi for its actions in Kashmir.
Now Indian refiners have resumed buying Malaysian palm oil and contracted around 70,000 tonnes of shipments in December as Kuala Lumpur has been offering a $5 per tonne discount over supplies to come inline and compete with the trade rival Indonesia.
India, the biggest buyer of Malaysian palm oil this year, could support Malaysian palm oil prices, which are trading near their highest level in two years.
Malaysian palm oil is available at a $5 discount amid congestion at Indonesian ports, said a Mumbai-based dealer with a global trading firm. "This is giving a few buyers a reason to start buying Malaysian oil in small quantities to run their refineries."
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