Indonesia and Malaysia are the two countries which supply palm oil. Malaysia produces 19 million tonnes of palm oil in a year, while Indonesia produces 43 million tonnes, according to trade data.
India, the world's largest importer of vegetable oils, buys nearly 15 million tonnes annually. Pakistan bought 1.08 million tonnes of palm oil from Malaysia in 2019, while India bought 4.4 million tonnes, according to the Malaysian Palm Oil Council.
The Indian government has imposed restrictions on imports of refined palm oil, a move which could discourage the inbound shipment of the commodity from Malaysia.
The move came after the Malaysian prime minister repeatedly criticised India's policy on Kashmir and the new citizenship law. Mahathir had also raised the Kashmir issue in the UN General Assembly session in September.
However, the External Affairs Ministry in New Delhi has said that the government's imposition of restrictions on imports of refined palm oil is product-specific and not country-specific.
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