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Traders in India are avoiding Malaysian palm oil imports in favour of purchases from Indonesia amid growing fears that New Delhi is weighing retaliation against the Southeast Asian nation
for its criticism over Kashmir and sheltering of wanted Islamic preacher Zakir Naik. Advertisement At least three importers said the uncertainty in bilateral relations had forced them to
consider alternatives, while a government source who handles India’s trade ties with Southeast Asia struck a note of caution despite saying there was no official word on import curbs yet.
“Anything can happen. Maybe some restrictions will be imposed,” said the source, who did not want to be named as he was not authorised to speak on the matter. B.V. Mehta, executive director
of lobbying group the Solvent Extractors’ Association of India, which represents more than 875 businesses with a combined oil processing capacity of 30 million tonnes, said the Indian
government was deeply upset with what officials saw as hostile comments from the Malaysians and would take action in response, “but what type of action is still not clear”. “Just to
safeguard business interests, most refiners and importers have moved from [buying from] Malaysia to Indonesia. After all, the price of palm oil from Indonesia is the same,” he said.
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