India keeps high palm oil tariff despite RI protest: Minister
India keeps high palm oil tariff despite RI protest: Minister
Zakki P. Hakim, The Jakarta Post, Jakarta
India will maintain its higher import duty on crude palm oil
(CPO) despite complaints from Indonesia, Indonesian Minister of
Agriculture Anton Apriyantono said on Monday.
Anton was in New Delhi last week where he met with his Indian
counterpart.
"India says that the decision is final as it is aimed at
protecting local manufacturers of edible oils," said Anton on
Monday.
However, India promised to review the import duty periodically
in response to global CPO price fluctuations, Anton said, adding
that India was committed to maintaining the level of its CPO
imports from Indonesia.
Anton met with India's agriculture minister, commerce and
industry minister, and finance minister on the sidelines of last
week's ministerial meeting in New Delhi of the G20 -- a group of
developing countries set up to defend the interests of the
developing world at the World Trade Organization.
The Indian government recently raised its CPO import duty from
65 percent to 80 percent to protect its farmers who grow soybeans
and sunflowers, which yield edible oil that is a substitute for
CPO.
This was followed by a move to increase India's import duty on
olein, a CPO derivative product, from 75 percent to 90 percent.
Indonesia is the world's second largest exporter after
Malaysia of palm oil -- a raw material for, among other things,
cooking oil, soaps and detergents.
Output from the two countries is expected to make up about 85
percent of this year's global palm oil production.
Before India moved to raise the import duty on CPO, Indonesia
had hoped to increase its palm oil exports to the country.
Earlier, Indonesian Palm Oil Producers Association chairman
Derom Bangun said the association expected to increase CPO
exports to India to 1.2 million tons this year from last year's
960,000 tons.
Local palm oil industries suggested the move by India could
benefit Malaysia, which exports more palm oil derivatives than
crude palm oil -- the complete opposite of Indonesia.
However, minister Anton denied this was true, saying that
crude palm oil dominated Malaysia's palm oil exports to India
last year, making up almost 64 percent of the exports, compared
to Indonesia's 73 percent.
"There is not much of a difference," he said quoting data from
the Indian finance ministry.
In total, Indonesian CPO imports account for about two thirds
of India's total CPO imports, with Malaysia supplying the rest.
During his meetings in New Delhi last week, Anton said he
proposed a cooperation in building CPO depots in several Indian
states to boost CPO exports to the country.
India has yet to respond to the offer. India however, has
offered both Indonesia and Malaysia the chance to hold bilateral
preferential trade talks -- something India has done with
Thailand, Malaysia and Singapore.
Anton said the offer would be forwarded to Minister of Trade
Mari E. Pangestu for consideration.