Kuala Lumpur: Malaysia on Tuesday said that it is planning to buy more crude sugar from India. The reaction came after India signalled to restrict the import of palm oil from Malaysia after its criticism on Indian action in Kashmir.
Teresa Kok, the Malaysian minister in charge of the palm oil portfolio, said, “We are taking these steps considering India as our third-largest export destination for palm oil.
“We are aware of the issues that threaten our good relations with India, and we are open to negotiating with New Delhi regarding trade,” she further added.
Earlier Indonesia had asked India to cut its tariff on refined palm oil matching the levy faced by rival producer Malaysia, and offered market access for Indian sugar in exchange.
To reduce the sugar surplus, the Indian government had announced financial assistance on 60 LMT sugar export for 2019-20 sugar season. The policy involves financial aid of Rs 10,448 per metric tonne (mt) to sugar mills. Sugar mills across India have already started gearing up for exports as it would rope in financial assistance from the Government and ease the financial burden and tall stockpiles.
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