India keeps high palm oil tariff despite RI protest: Minister<\/p>\n
Zakki P. Hakim, The Jakarta Post, Jakarta<\/p>\n
India will maintain its higher import duty on crude palm oil
\n(CPO) despite complaints from Indonesia, Indonesian Minister of
\nAgriculture Anton Apriyantono said on Monday.<\/p>\n
Anton was in New Delhi last week where he met with his Indian
\ncounterpart.<\/p>\n
"India says that the decision is final as it is aimed at
\nprotecting local manufacturers of edible oils," said Anton on
\nMonday.<\/p>\n
However, India promised to review the import duty periodically
\nin response to global CPO price fluctuations, Anton said, adding
\nthat India was committed to maintaining the level of its CPO
\nimports from Indonesia.<\/p>\n
Anton met with India's agriculture minister, commerce and
\nindustry minister, and finance minister on the sidelines of last
\nweek's ministerial meeting in New Delhi of the G20 -- a group of
\ndeveloping countries set up to defend the interests of the
\ndeveloping world at the World Trade Organization.<\/p>\n
The Indian government recently raised its CPO import duty from
\n65 percent to 80 percent to protect its farmers who grow soybeans
\nand sunflowers, which yield edible oil that is a substitute for
\nCPO.<\/p>\n
This was followed by a move to increase India's import duty on
\nolein, a CPO derivative product, from 75 percent to 90 percent.<\/p>\n
Indonesia is the world's second largest exporter after
\nMalaysia of palm oil -- a raw material for, among other things,
\ncooking oil, soaps and detergents.<\/p>\n
Output from the two countries is expected to make up about 85
\npercent of this year's global palm oil production.<\/p>\n
Before India moved to raise the import duty on CPO, Indonesia
\nhad hoped to increase its palm oil exports to the country.<\/p>\n
Earlier, Indonesian Palm Oil Producers Association chairman
\nDerom Bangun said the association expected to increase CPO
\nexports to India to 1.2 million tons this year from last year's
\n960,000 tons.<\/p>\n
Local palm oil industries suggested the move by India could
\nbenefit Malaysia, which exports more palm oil derivatives than
\ncrude palm oil -- the complete opposite of Indonesia.<\/p>\n
However, minister Anton denied this was true, saying that
\ncrude palm oil dominated Malaysia's palm oil exports to India
\nlast year, making up almost 64 percent of the exports, compared
\nto Indonesia's 73 percent.<\/p>\n
"There is not much of a difference," he said quoting data from
\nthe Indian finance ministry.<\/p>\n
In total, Indonesian CPO imports account for about two thirds
\nof India's total CPO imports, with Malaysia supplying the rest.<\/p>\n
During his meetings in New Delhi last week, Anton said he
\nproposed a cooperation in building CPO depots in several Indian
\nstates to boost CPO exports to the country.<\/p>\n
India has yet to respond to the offer. India however, has
\noffered both Indonesia and Malaysia the chance to hold bilateral
\npreferential trade talks -- something India has done with
\nThailand, Malaysia and Singapore.<\/p>\n
Anton said the offer would be forwarded to Minister of Trade
\nMari E. Pangestu for consideration.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/india-keeps-high-palm-oil-tariff-despite-ri-protest-minister-1447893297",
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