After India officially banned palm oil trade with Malaysia, Pakistan steps in to cement a trade deal. Accordingly, the attempt aims at helping Malaysia after offset lost sales due to ‘diplomatic issues.’
The Hindu-majority India finds PM Mahathir’s comment on its human rights violation acts in Muslim-populated Kashmir offensive, thus, indirectly telling its refiners to stop buying the edible oil. Reportedly, this caused an approximately 80% decline on imports.
Pakistani PM Imran Khan considered that PM Mahathir’s attention towards Kashmir helped raise awareness. For that reason, Pakistan argued that it would be appropriate to appreciate the help by helping Kuala Lumpur back.
“The way you, PM, have stood with us and spoken about this injustice going on, on behalf of Pakistan I really want to thank you,” PM Khan said.
Additionally, PM Khan personally thought that India is being unjust to restrict trade because of such comment. Concerning the injustice, PM Khan possessed another strong basis to assist the country.
“Since we noticed India threatened Malaysia to cut palm oil imports for supporting the Kashmir cause, Pakistan will do its best to compensate for that,” he added.
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How Pakistan will Compensate for Malaysia-India Palm Oil War
Regarding India’s palm oil purchase restriction due to Kashmir issue, Pakistan will do its best to compensate Malaysia by increasing its palm oil import. The two prime ministers have discussed the deal during a state visit in Putrajaya, Malaysia.
“I think Pakistan is quite ready to import more palm oil from Malaysia,” PM Khan said. “Pakistan will do its best to compensate for that.”
However, figures about how much more Pakistan will purchase remains confidential. Malaysia will disclose its official export data on Monday next week.
Pakistan purchased a total of 1.1 million tonnes of palm oil from Malaysia in 2019. Meanwhile, India bought roughly 4.4 million tonnes, being the biggest Malaysian palm oil buyer according to the Malaysian Palm Oil Council.
Furthermore, pertaining to India’s restrictions, the Malaysian Palm Oil Council believed that it is temporary. Considering the existing long-term relationship, the council asserts that both countries will definitely settle the dispute.
“Having long-standing bilateral ties, the two nations will overcome the current challenges, and prevail towards mutual and beneficial outcomes,” the council said in a statement.
