Crude palm oil import into India to get boost

India’s decision not to impose import duty on crude palm oil (CPO) while maintaining a 20 per cent duty on soybean oil is expected to boost CPO exports to the continent, at least in the first quarter of this year, analysts said in Kuala Lumpur.

Despite mounting pressure by domestic oil producers’ associations to re-impose import duties on all edible oils, analysts said the Indian government was reluctant to impose duty on CPO — the world’s cheapest edible oil — ahead of the country’s general election, as it would be more expensive for local consumers, news reports said on Friday.
Am Research analyst Gan Huey Ling described the development in India as positive, adding “the tax differential between CPO and soybean oil enhances the attractiveness of CPO, which is now trading at a price significantly below soybean oil”.

Based on Malaysian Palm Oil Board statistics, the international price discount between CPO and soybean oil was USD 235 per tonne last December against USD 336 per tonne in the previous month.

Financial Express