India not seen lowering edible oil import tariff<\/p>\n
NEW DELHI (Reuters): Indonesian and Malaysian industry
\nministers will lobby India for lower duty on palm oil during
\ntheir visit starting Monday but the world's largest oil importer
\nis unlikely to oblige, industry officials said.<\/p>\n
Indonesia's Trade and Industry Minister Luhut Pandjaitan and
\nMalaysian Primary Industries Minister Lim Keng Yaik would hold
\nmeetings with India's finance, commerce and food ministries to
\nseek duty at par with soyoil.<\/p>\n
Malaysia and Indonesia, the world's number one and two palm
\noil producers respectively and traditional rivals, agreed in
\nFebruary to form a world palm oil association to help lift palm
\noil prices from 10-year lows.<\/p>\n
"We do not expect any cut in duties because the prices are too
\nlow, and any fall in import duty will hit farmers and the
\ndomestic oil industry," a leading trader said.<\/p>\n
In its federal budget in February, India imposed a steep
\nimport duty of 75 percent on crude palm oil (CPO) and 85 percent
\non refined palm oil.<\/p>\n
The duties compare to 45 percent for crude soyoil and 50.8
\npercent on refined soyoil, driving buyers to switch to soyoil.<\/p>\n
Indian traders said COP and refined palm oil prices have
\nfallen in the last one month and any reduction would be "suicidal
\nfor the local industry".<\/p>\n
"The CPO is down to $203 a ton and refined oil has also
\nfallen. We do not see the import tariff coming down," a leading
\noil importer said from the western city of Ahmedabad.<\/p>\n
"We rather want the government to increase duty on soyoil as a
\nsafeguard measure so that its import does not hurt prices,"
\nB.B.Mehta, Executive Director of Solvent Extractors Association
\nof India (SEAI) told Reuters.<\/p>\n
Analysts said India might consider a small reduction in palm
\noil duties if there are possibilities of counter trade of rice.<\/p>\n
"We have huge stocks of rice and Indonesia has a demand of two
\nmillion tons and if they agree to buy our rice then the
\ngovernment might consider their case," a Bombay-based commodity
\nanalyst said.<\/p>\n
India had planned to export about two million tons of rice
\nfrom government stocks, which were at 20.7 million tons in
\nJanuary this year.<\/p>\n
But traders say the country was not likely to meet its target
\ndue to lower global prices.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/india-not-seen-lowering-edible-oil-import-tariff-1447893297",
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"sponsor": "Okusi Associates",
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