Malaysia said on Tuesday, February 3 that India's move to cut back on palm oil purchases from the Southeast Asian nation is "temporary" and will be resolved amicably between the two nations.

palm oil Malaysia
Workers stand near palm oil fruits inside a palm oil factory in Sepang, outside Kuala Lumpur, February 18, 2014.Reuters

Last month, India restricted imports of refined palm oil and asked importers to avoid purchases from Malaysia after its criticism of India's actions in Kashmir and new citizenship law.

'Two nations will overcome current challenges'

Palm oil
A worker collects palm oil fruits at a plantation in Bahau, Negeri Sembilan, Malaysia January 30, 2019.Reuters

"Having long-standing bilateral ties, the two nations will overcome the current challenges, and prevail towards mutual and beneficial outcomes," the Malaysian Palm Oil Council said in a statement, citing Primary Industries Minister Teresa Kok.

Malaysia's push to implement B20 biodiesel starting this month will also help sustain high crude palm oil prices, the statement read.