KUALA LUMPUR, Aug 24 (Bernama) -- The cordial atmosphere at the Asean and related meetings was shattered Thursday when Datuk Seri Rafidah Aziz and her Indian counterpart Kamal Nath clashed openly over New Delhi's reluctance to lower duties for palm oil.

The heated exchange at the closed door-meeting -- which the media learnt about later -- between Asean and India spilled over at the press conference when Rafidah interrupted Nath to put forward Asean's stand that palm oil duties into India must be reduced.

Contrary to the earlier press conferences that were conducted in jovial mood, it was clear that the both, who are also good friends, were at loggerheads over palm oil to the extent that diplomatic niceties were thrown out of the window.

Reporters had earlier sensed something amiss when Rafidah entered the press conference room looking rather unhappy and so was her Indian counterpart who followed soon after.

At the press conference attended by 50 members of the media after consultations between Asean Economic Ministers (AEM) and the Indian minister, Rafidah announced that the suspended free trade agreement talks would now be revived.

This prompted a reporter to ask Nath to elaborate on the palm oil issue.

As Nath was elaborating, Rafidah intercepted and began firing her arguments for some time on why India should give priority on palm oil in the FTA talks.

Nath kept quiet.

But later, he replied: "We must not forget that a five percent market opening in India amounts to five percent of the 1.5 billion population and at the same time, India as other Asean countries, also has sensitivities..."

On India's tariff on palm oil as well as import, he said people would be surprised about what they can find as sometimes even with a very high tariff imposed, there would be a very high increase in export from Asean.

To this, a clearly incensed Rafidah said: "Well, that's because the value has gone up...because your tariff has gone up.."

Nath then said: "No, it's not that. I'm talking about tonnes...it was a very interesting figure because it depends how you look at it, in terms of what kind of market access, whether the market access have gone up or going down.

"At the end of the day, the bottomline is the expansion of trade as all these will facilitate a new momentum and the growth of trade.

In a sarcastic tone, Rafidah replied: "I agree with that motherhood statement though, but I would say if India can reduce substantially tariffs on palm oil, you can imagine how much cheaper palm oil would be to the one over billion people in India.

"Why not do them a favour by bringing cheaper palm oil to them because our palm oil prices are quite okay. It's the high (import) duty that kills them."

Nath retorted with equal sarcasm: "I will keep Rafidah's advice in mind and decide how we should run a country."

At this juncture, Rafidah replied: "No, no, I'm just telling you. We would like to sell palm oil cheaper to your consumers...right, its simple logic.

Rafidah complained all Asean wanted was for its products to be competitive especially vis-a-vis soya bean.

She said the Asean negotiation team was keen to resume talks by the end of next month although it coincides with the Ramadan (fasting) month.