Palm Oil News: India’s Palm Oil Imports Expected To Jump As Tax Cut Attracts Refiners | Business News in India

MUMBAI / KUALA LUMPUR: India’s palm oil imports are set to increase 100,000 tonnes per month from December after government cut import taxes on tropical oil, making it cheaper than oils edible rivals, industry officials said on Friday.
Rising imports from India, the world’s largest buyer of palm oil, will support benchmark Malaysian palm oil prices which reached their highest level in eight years this month, but could weigh on the future of American soybean oil.
India on Thursday reduced the import tax on crude palm oil (CPO) to 27.5% from 37.5% as it tries to curb rising food prices.
“The cut has made palm oil more competitive as refiners have to pay 7.5% less tax on palm oil imports compared to soybean and sunflower oil,” Sudhakar Desai said. , President of the Indian Association of Vegetable Oil Producers (IVPA).
India has maintained the tariff structure on crude soybean oil and crude sunflower oil at 35%.
Palm oil imports are expected to increase by around 100,000 tonnes each month from December, while soybean oil imports may slow from January, said Sandeep Bajoria, managing director of Sunvin Group, a vegetable oil broker.
“Soybean oil import contracts have already been signed for December shipments. From January, soybean oil imports would decrease to make way for palm oil, ”he said.
After the tariff reduction, CPO became $ 225 per tonne cheaper than soybean oil from $ 175 before the reduction, Bajoria said.
The South Asian country imports palm oil mainly from Indonesia and Malaysia, and other oils such as soybean and sunflower oil from Argentina, Brazil, Ukraine and Russia .
“Compared to declining CPO production, declining CPO inventories and the harsh weather conditions at the end of this year, this (reduction in duties) could lead to better CPO prices,” Joseph said. Tek Choon Yee, Managing Director of IJM Plantations in Malaysia.
India’s palm oil imports fell 23% to 7.2 million tonnes in the 2019-20 marketing year ended October 31, the lowest in nine years as the coronavirus crisis reduced demand hotels and restaurants.
In 2020-2021, imports could jump 25% to 9 million tonnes, Desai said.

Steve R. Hansen

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