Kuala Lumpur: According to the reports, to resolve the on-going deadlock over palm oil, Malaysia will be buying more sugar from India.
The MSM Malaysia Holdings Berhad will buy 1,30,000 tonnes of raw sugar from India in the first quarter. In 2019, the company has purchased around 88,000 tonnes of raw sugar from India. The company refuted the palm oils dispute as a reason to increase sugar purchase.
Following Malaysia’s criticism of India over Kashmir issue, India halted the Malaysian palm oil imports, this month.
Indis is sitting with sugar surplus and export to Malaysia will aid in reducing the sugar stockpile. Also, 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 on them.
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