@SimonSimCity, I actually did 2 things to overcome it.
1 . in mysql command line (this probably overcome LOAD DATA INFILE problem)
mysql> grant file on *.* to piwik@localhost
2. the config change mentioned above. (I think this solved LOAD DATA LOCAL INFILE problem)
I referred to this link http://bytes.com/topic/mysql/answers/142140-differences-between-data-infile-load-data-local-infile
1 . in mysql command line (this probably overcome LOAD DATA INFILE problem)
mysql> grant file on *.* to piwik@localhost
2. the config change mentioned above. (I think this solved LOAD DATA LOCAL INFILE problem)
I referred to this link http://bytes.com/topic/mysql/answers/142140-differences-between-data-infile-load-data-local-infile