1 Jan 2018
Government of India has reduced the duty on Crude and Refined palm oil to honor commitments made in a free trade agreement between India and Malaysia. New import duty on CPO is now at 44% compared to previous levels of 48.4%, while import duty on RBD palmolein is set at 55% for Indonesia and 49.5% for Malaysia against previous levels of 59.4%. All figures includes surcharge of 10%. Import duty on soy oil is kept unchanged at 38.5%.
On the other hand, Yesterday evening, Government of India has further increased import tariffs on Crude palm oil at $503/ton compared to previous levels of $472 amid increase in CPO prices in international market. While import tariffs in crude soy oil is kept unchanged at $708/ton.
We expect CPO prices to trade side-ways for near future as lowered import duty will be offset by Increased import tariffs and prospect of an increase in CPO price in Malaysia as well as Indonesia amid end of peak production cycle in both the countries and incessant rainfall in world’s largest crude palm oil producing country, Indonesia.