Top buyer India to favour Malaysian palm oil as Indonesian prices rise -assoc
02 December, 2021
India is likely to buy more Malaysian palm oil after export levies imposed by top producer Indonesia hit record highs in the past year, B.V. Mehta, executive director of India's Solvent Extractors' Association, said on Thursday.
Indonesia had imposed higher export and levies in the past year, making prices of palm oil - which had already reached record highs this year - more costly for the top buyer.
"Indonesia's share of palm oil imports by India earlier was nearly 70-75per cent," Mehta told the annual Indonesian Palm Oil Conference.
"Heavy export duty and levies being imposed by Indonesia (are) discouraging Indian refiners to buy from Indonesia," he said, adding that in January-September this year, Indonesia's share of Indian palm oil imports had dropped to 55per cent, while Malaysia's had jumped 45per cent.
Indonesia started taxing crude palm oil exports again after three years absence in February last year, while export levies for the edible oil reached a record high of US$255 per tonne in February earlier this year.
In an effort to cool near-record price rises, India cut base import taxes on palm oil, soyoil and sunflower oil in September.
Indonesia set its crude palm oil export reference price higher for December, meaning that palm oil taxes and levies remain at the top bracket of US$200 per tonne and US$175 per tonne respectively.
Source: www.channelnewsasia.com