Mumbai: Palm oil imports enhanced in India will jump in the first quarter of 2022 after New Delhi cuts import taxes on it, making products that are made cheaper for Indian buyers than raw material raw palm oil (CPO).
Higher processed oil palm oil imports by India, the largest vegetable oil buyer in the world can help producers in Indonesia and Malaysia but injure resistance in India.
New Delhi on Monday cuts basic import taxes on refined palm oil, blessed, and read Deodori (RBD) to 12.5 percent from 17.5 percent to 2022 March and allow imports until December 202 to cool the price approaching.
“Custom reduction has made fine palm oil cheaper than CPO.
There will be a surge in RBD imports in the coming months,” said Govindbhai Patel, managing partners in edible oil trading companies.
India can import 750,000 tons to 800,000 tons of fine palm oil in the March quarter, more than 686,340 tons imported throughout the 2020/21 marketing year which ended on October 31, Patel said, which has been traded can be eaten for almost five decades.
Indonesia offers RBD at a discount of $ 50 per ton for CPO because Jakarta raised export levies on CPO to $ 127 per ton above which for processed oil, said Sudhakar Desai, President of the Indian Vegetable Oil Producers Association.
“In short-term RBD imports can reduce local prices.
But the surge will be about the local purification industry in terms of margins and capacity utilization,” Desai said.
India traditionally imported around 650,000 tons of palm oil every month, mostly in the form of CPO.
The reduction in import duties will ask the buyer to replace CPO with RBD in the coming months, said Atul Chaturvedi, President of the Oil Trading Agency Edible The Solvent Extractors Association of India.
“This is contrary to the principle of our independence and can endanger the generation of employment and the addition of values ​​in India,” Chaturvedi said.
India, which fulfills more than 70 percent of its oil consumption that can be eaten through imports, has tried to bring down foreign purchases by promoting local oil production.