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Malaysia’s leading sugar producer disclosed its plan of purchasing higher volume of sugar from India, with sources saying that the scheme is an attempt to resolve its ongoing feud with New Delhi over palm oil exports.
MSM Malaysia Holdings Berhad (MSMH.KL) is set to purchase 130,000 tonnes of raw sugar from New Delhi worth 200 million ringgit or $49.20 million in the first quarter. Last 2019, it purchased 88,000 tonnes of sugar from India.
MSM did not mention the ongoing oil dispute with India as the force behind larger purchase. However, according to sources, the plan is to placate India which has been urging Malaysia to minimize trade shortfall between them.
The dispute began when India restricted Malaysian oil imports as retaliation to Malaysian Prime Minister Mahathir Mohamad’s remarks against New Delhi’s legislation on Kashmir.
Malaysia considered other markets that may struggle as India remained as the largest consumer of Malaysian palm oil for the past five years, with 4.4 million worth purchase tallied last year.
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