India cut the basic import tax on crude palm oil to 15% from 27.5%, but imposed a 17.5% \"cess\" - a separate tax - on the imports, Sitharaman said in her federal budget speech

Higher imports by India, the world's biggest buyer of palm oil, will support benchmark Malaysian palm oil prices that hit their highest level in eight years this month, but could weigh on U.S. soyoil futures

India's monthly palm oil imports could dip to 600,000 tonnes in January from around 750,000 tonnes in October if the current narrow price gap remains, said a Mumbai-based dealer with a global trading firm

India spends around $10 billion every year on edible oil imports as the country's reliance on overseas purchases have jumped to 70% from 44% in 2001/02

India early this year restricted imports of Malaysian palm oil after then Prime Minister Mahathir Mohamad criticised policies by New Delhi affecting the country's Muslim minority

Palm oil accounts for nearly two-thirds of India's total imports of edible oil, mainly sourced from Indonesia and Malaysia

Palm oil exports from the world's second-largest producer, Malaysia, rose 8.8% in the April 1-25 period from the month before, according to AmSpec Agri Malaysia

Oil prices rose on Wednesday as investors looked for bargains after the previous session's slump and on hopes that consuming countries will look to fill their strategic reserves

Malaysia, the second biggest producer of crude palm oil after Indonesia, will look to expand its exports to new markets, such as Russia and the Middle East

All these Indian edible oil companies have been struggling with underutilisation of their capacities; India is the world's biggest palm oil buyer and is a major market for the world's second-largest producer Malaysia

Other items that may face restrictions include copper and aluminium wire, microprocessors, computer and telecom products, turbojets, and aluminium ingots

The 94-year-old premier of Muslim-majority Malaysia has criticised India's new religion-based citizenship law and also accused India of invading the disputed region of Kashmir

'We are concerned of course because we sell a lot of palm oil to India, but on the other hand we need to be frank and see that if something goes wrong, we will have to say it,' Malaysian PM said

India had earlier this week informally asked palm oil refiners and traders to avoid buying Malaysian palm oil

Palm oil is crucial for Malaysian economy as it accounted for 2.8% of Malaysia's gross domestic product last year and 4.5% of total exports

Trump has predicted a trade deal with China after positive gestures by Beijing, settling global markets that have been roiled by new tariffs from the world's two largest economies

The companies that benefit from the decision include Adani Wilmar, COFCO International, Emami Agrotech and Ruchi Soya Industries among others

On a fortnightly basis, global equity markets traded on a positive note as a result of the dovish statement made by the US Federal Reserve Chair Janet Yellen, who commented on the need for stabilization of foreign economies and its markets.

The Indian Rupee depreciated by 1.37 percent in the last fortnight owing to buying of greenback by banks and importers that kept the Indian Rupee pressurized. Moreover, weak trading in the Asian markets governed the trend of the Indian markets and its currency.