Malaysia said on Tuesday 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.

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Last month, India restricted imports of refined palm oil and asked importers to avoid purchases from Malaysia.

"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.