There is no proposal to impose a restriction on import of any item from Malaysia currently, Parliament was informed on Friday.
Commerce and Industry Minister Piyush Goyal said that currently, crude palm oil is freely importable while refined palm oil has been put under the restricted category.
But, this restriction is applicable for imports from all countries, he said.
"At present, there is no proposal to impose a restriction on import of any item from Malaysia," Goyal said in a written reply to the Rajya Sabha.
Indonesia and Malaysia are major suppliers of palm oil to India.
The move to put a restriction on refined palm oil comes in the backdrop of remarks by Malaysia on the new citizenship law and Kashmir issue.
On December 20 last year, Malaysian Prime Minister Mahathir bin Mohamad had reportedly said, "I am sorry to see that India, which claims to be a secular state, is now taking action to deprive some Muslims of their citizenship."