Malaysian Palm Oil Council Russia's Post

India Trade Body Seeks Govt To Retain 11% Import Tax Gap Between Crude, Refined Palm Oil – NewsRise

13-Jan-2022 05:56:21 PM
By Kuala Lumpur Newsroom

MUMBAI (Jan 13) -- The Solvent Extractors' Association of India has requested the federal food and consumer ministry to keep the import tax difference between crude and refined palm oil at 11% to shield the domestic refining industry from cheaper imports of finished products.

"We fear crude palm oil imports in our country would now get replaced with refined palmolein and our palm refining industry would be reduced to being mere ‘packers’ seriously compromising heavy investments made in industry", the trade body for vegetable oil said in a statement to the federal government.

India, which imports 65% of its edible oil requirement, last month cut basic custom duty on refined palm oil and its fractions such as RBD palmolein to 12.5% from 17.5% until Mar. 31, citing 'public interest'.

The move halved the import duty differential between raw material, or crude palm oil and finished product, or refined palmolein to 5.5%.

The trade body also warned New Delhi of a trend by exporting nations such as Indonesia and Malaysia of incentivising exports of finished products by imposing hefty export tax on crude palm oil as compared to RBD palmolein.

"Despite refining cost of palmolein this difference makes RBD palmolein cheaper than CPO by about 5% at their current prices", the trade body said.

In order to create a level playing field, the trade body has also asked New Delhi to place the import of RBD palmolein and refined palm oil under 'restricted list' with immediate effect or at least from April 2022.

In Jan 2020, the government had placed RBD Palmolein in the ‘restricted list’ which helped improve capacity utilisation and sentiment of domestic oil seed farmers.
By: via Malaysian Palm Oil Council Russia