India was Malaysia’s third-largest export destination in 2018 for palm oil and palm-based products worth RM6.84 billion. Vegetable oil contributed 2.8 per cent of Malaysia’s gross domestic product last year and 4.5 per cent to total exports. The SEAI’s decision could weigh on the Malaysian benchmark palm oil contract for January delivery when the market reopens on Tuesday. In any case, household palm oil consumption falls in India during winter as the tropical oil solidifies at lower temperature. “This rare advisory we issued considering rising tensions between Malaysia and India,” SEAI Executive Director B.V. Mehta told Reuters.

Source: New Strait Times October 21, 2019 14:26 UTC