NEW DELHI, India, Nov.30, and Reuter: Malaysian Finance and Primary Industry Ministers begin a visit to India on Tuesday aimed at entrenching its lion’s share in the billion dollar Indian edible oil market, diplomatic sources said on Monday.

The sources said Finance Minister Daim Zainuddin and Primary Ministry Minister Lim Keng Yaik will also seek to raise total bilateral trade, now heavily in favour of Malaysia, in a bid to narrow the gap.

“Malaysia will seek to maintain the lion’s share of the Indian edible oil market while trying to increase total trade volume and offering investment opportunities for India in Malaysia”, one source said.

Malaysian statistics show their bilateral trade in 1986 hit 1.14 billion ringgit (455 million U.S.), down from 1.27 billion ringgit (508 million US.) in 1985, with India buying about four times ‘more than it sold to Malaysia.

‘The trade gap widened 13 per cent against India in the first seven months this year over the same 1986 period to 404.8 million ringgit (162 million US.).

India buys about 13 million tonnes of edible oil a year, including 800,000 tonnes from Malaysia and palm oil exports are expected to rise this year, diplomatic sources said.

India is Malaysia’s single largest market for palm oil.

Industry experts say Indian edible oil imports, which cost the government about 800 million — US. Dollars a year will rise sharply this year because of a severe drought.

Daim and Lim would meet Indian Finance and Commerce Minister N.D. Tiwari and Food and Civil Supplies Minister H.K.L. Bhago during the December 1 to 4 visits, the diplomatic sources said.

The diplomatic sources said the two sides would discuss ways to reduce the trade gap by increasing Indian investment and joint venture projects in Malaysia such as power generation, road building. And small scale industries in Malaysia.

‘The sources said the Malaysian ministers would also work on a draft of. Bilateral shipping pact in which Indian ships would be used to transport Malaysian palm oil sold to India.

“The Malaysians delegation are going to tell the Indians that with a population of 15 million, there is no scope of improving Indian exports, mostly food items to Malaysia significantly,” on diplomatic source said.

“The only way to narrow the trade gap is to step up the total trade volume and increase Indian investments in Malaysia”, the source said.

Article extracted from this publication >>  December 4, 1987