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.
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