MUMBAI/NEW DELHI, Jan 7 (Reuters) - India has informally asked palm oil refiners and traders to avoid buying Malaysian palm oil, government and industry sources said, following Kuala Lumpur's criticism of India's actions in Kashmir and its new citizenship law.
Palm oil inventories could spike in Malaysia, and prices may come under pressure if India, the world's biggest buyer of palm oil, reduces purchases from the country.
"In Monday's meeting we have been verbally told to avoid buying Malaysian palm oil," a senior industry official, who attended a meeting in New Delhi of two dozen industry officials, said.
"We've had various rounds of meetings within the government and industry to see how we could reduce imports from Malaysia," one government official said, adding India is yet to firm up a plan of action and is exploring various options. (Reporting by Rajendra Jadhav and Aftab Ahmed; Editing by Euan Rocha and Susan Fenton)