Indian buyers have resumed purchases of Malaysian palm oil after a four-month gap following a diplomatic row, with buying spurred by a fall in domestic inventories and discounted prices.
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The renewed purchases come amid improving trade relations between the two countries after the formation of a new government in Kuala Lumpur, with Malaysia signing a deal last week to buy a record 100,000 tonnes of Indian rice.
Leading Indian importers last week contracted up to 200,000 tonnes of crude palm oil from Malaysia, the world’s No.2 producer after Indonesia, to be shipped in June and July.
A restart to buying by India, the world’s biggest edible oil importer, could further support Malaysian palm oil prices.
India buys more than 9 million tonnes of palm oil a year, accounting for nearly two-thirds of its total edible oil imports, and took a record 4.4 million tonnes of Malaysian palm oil in 2019.
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