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Malaysia to strengthen trade ties with India after palm oil purchases

May 21, 2020 | 🚀 Fathership
KUALA LUMPUR - Malaysia voiced its commitment to further strengthen diplomatic and trade ties with India, after the world's largest edible oil buyer renewed purchases of Malaysian palm oil, in a sign of improving relations between the two countries.

Crude palm oil prices falling below Malaysia's palm oil duty threshold level and New Delhi's decision not to extend restrictions on refined palm oil imports have led to an increase in purchases, he said.

Malaysia, the world's second-largest palm oil producer and exporter, slashed the June palm oil export duty to zero, lowering its price against rival Indonesian palm.

Palm oil futures traded on the Bursa Malaysia spiked 47% to 66,427 lots on Wednesday compared to the daily average of 45,200 lots last week, Mohd Khairuddin said.

Smallholders in Malaysia and Indonesia - which together account for 85% of global palm oil production - are reducing fertiliser use due to a plunge in fresh fruit bunch prices, a risk to next year's output.