INDIA'S DEC PALM OIL IMPORTS FLAT AFTER TAX INCREASE
Last Updated: 2018-01-12
Decrease Font Size Increase Font Size

By Shakir Husain

NEW DELHI, India Jan 12 (NNN-Bernama) -- India's palm oil imports remained flat in December 2017 compared to the same month in the previous year due to an import tax increase in November.

India imported 722,857 tonnes of palm oil last month compared with 723,158 tonnes in December 2016, according to the industry body, Solvent Extractors Association (SEA).

The Indian government raised the import duty on edible oils by 12.5 per cent to 15 per cent in November to support domestic producers.

"This announcement has changed the sentiment and the (local) market has moved upward and now the prices of soyabean and groundnut are above the minimum support price," it said.

Following India's tax increase, Malaysia suspended the export taxes on crude palm oil for a three-month period from Jan 8 and this would reduce cost for Indian buyers, the trade body said.

Overall, vegetable oil imports by India in December dropped 10 per cent to 1,09 million tonnes compared with 1,21 million tonnes in the same month in 2016.

Palm oil accounts for about 60 per cent of India's imports of edible oils.--NNN-BERNAMA