Davos diplomacy likely between India, Malaysia amid palm oil row

India has repeatedly objected to Malaysian Prime Minister Mahathir Mohamad speaking out against recent policies which critics say discriminate against Muslims

Trade ministers from India and Malaysia are likely to meet on the sidelines of the World Economic Forum's annual meeting in Davos next week amid a palm oil spat between the two countries, a Malaysian government spokesman told Reuters on Friday.

The government has repeatedly objected to Malaysian Prime Minister Mahathir Mohamad speaking out against recent policies which critics say discriminate against Muslims.

Malaysia, a Muslim-majority nation, is the second biggest producer and exporter of palm oil and India's restrictions on the refined variety of the commodity imposed last week has been seen as a retaliation for Mahathir's criticism of New Delhi's actions. 

Union minister Piyush Goyal denied on Thursday that the government was trying to hit out at Malaysia in particular.

The row between the countries, nevertheless, pushed benchmark Malaysian palm futures to its worst weekly decline in more than 11 years on Friday.