India issues licenses for 1.1 million tons of palmolein from Indonesia

Mumbai, India has issued import licenses for 1.1 million tons of refined palmolein from Indonesia, government and trade sources told Reuters.

The move has surprised the industry as only last month New Delhi restricted imports of the commodity.

A resumption in refined palmolein buying by India, the world's biggest palm oil importer, could lift its total palm oil imports and support Malaysian palm oil futures FCPOc3, which have corrected a fifth from a three-year high hit in January.

India put refined palm oil and palmolein on the list of restricted items on January 8, a move sources said was retaliation against top supplier Malaysia after its criticism of actions in Kashmir and a new citizenship law.

The move prompted traders to seek permission from the Directorate General of Foreign Trade (DGFT) to import refined palmolein, and the commerce ministry's wing received more than 100 applications for licenses.

The DGFT has issued import licenses for 1.1 million tonnes of refined palmolein to traders based on their applications, a government official and three traders told Reuters.

New Delhi has given permission to import refined palmolein only from Indonesia, a government official said.

Source: Bahrain News Agency