India resumes buying Malaysian palm oil as Kuala Lumpur offers discount -traders

Economy


MUMBAI: Indian refiners have resumed buying Malaysian palm oil after a gap of nearly a month and contracted around 70,000 tonnes of shipments in December as Kuala Lumpur has been offering a $5 per tonne discount over supplies from rival Indonesia, five traders told Reuters on Thursday.

The resumption in purchases by 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.

Indian refiners stopped purchases from Malaysia last month fearing New Delhi could raise import taxes or enforce other measures to curb imports after Kuala Lumpur criticised New Delhi for its actions in Kashmir.

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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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