Indonesia may import rice from India
Indonesia may import rice from India
Reuters, New Delhi
Indonesia is considering rice imports from India in hopes that
the world's largest edible oil consumer will reduce import duties
and buy more of its palm oil, the country's trade minister said
on Wednesday.
"At this moment we are already buying Indian wheat. We are
looking at the possibility of rice," Indonesian Trade Minister
Rini Sowandi told reporters.
"We do hope India will look into the possibility of time to
time reducing the tariffs," she said before a meeting with her
Indian counterpart in New Delhi.
India annually sells around 200,000 tons of wheat to
Indonesia, but very little rice is being shipped.
India is desperately trying to cut its grains stocks which are
expected to increase to 75 million tons by April.
India's palm oil imports have fallen since New Delhi imposed a
steep import duty of 75 percent on crude palm oil (CPO) and 85
percent on refined palm oil in its federal budget last February.
The duties compare with 45 percent for crude soyoil and 50.8
percent on refined soyoil.
Indonesia and Malaysia, the world's leading palm oil
exporters, have been lobbying with India to have a "level playing
field" by bringing palm oil duty at par with soyoil.
Palm oil constituted 60 percent on India's total edible oil
imports in 2000/01 (November-October), down from 68 percent a
year ago. But during the same period soyoil imports rose to 31
percent from 15.3 percent.
Sowandi said Indonesia was looking at the possibility of a
barter deal with India on railway projects and coal.
"We are looking at the possibility of Indian railway companies
to help us in setting up railways in south Sumatra and barter
trade with coal," she said.
Indian Railway Construction Company (IRCON) is in talks to set
up a 1,500-km (937-mile) rail-network project linking north
Sumatra to southern Indonesia.
She said Indonesia also wanted to import technology for
setting up palm oil processing plants and boost its share of oil
exports to India.
"India has been quite successful in developing palm oil
processing plants while we are in need of these products because
our plantation is now starting to mature," she said.
"At the same time India will provide us with more market for
processed palm oil," she said.