It is going to higher taxes on imports of refined palm oil, India

PETALING JAYA: India's move to raise taxes on its Indian imports and Indian Exporters of refined palm oil products is likely to put a dent in the earnings of Malaysian and/or Indonesian refiners of the commodity, analysts said. However, the decision, is neutral for “CPO” crude palm oil producers as India's CPO imports remain duty-free.

Basicaly analysts said that India, the world's biggest importer and/or exporters of palm oil, effectively doubled import taxes last Thursday when it ended a six-year freeze on the base import price of processed palm olein, according to latest report, increasing the cost of imports from Malaysia and Indonesia.

The country currently imports close to half its edible oil needs, & palm oil takes pole position with a 43 persent share of the edible oil market.

Employees fill plastic bottles with edible oil at an oil refinery plant of Adani Wilmar Ltd, a leading edible oil maker, in Mundra, 375 km from the western Indian city of Ahmedabad. The new tax policy by India is aimed at placating disgruntled refiners in India, who were doubly hit by both the low tariff and cheaper processed palm oil products from Indonesia. — Reuters The new tax policy, which lifts the base price of refined palm oil imports to market prices from US$484 "RM1,535" per tonne, is aimed at placating disgruntled refiners in India, who were doubly hit by both the low tariff and cheaper processed palm oil products from Indonesia.

Since Indonesia slashed its export taxes on refined palm oil last October, India's imports have doubled to 1.2 million tonnes for the first eight months of this year over 2011. That is clear the Indonesia and Malaysia, the world's top two producers of palm oil, account for 90 persent of global output of some 50 million tonnes.

 Know More:-

Refined Sunflower Oil

Indian Importers