India’s palm oil imports set to jump as tax cut lures refiners

MUMBAI/KUALA LUMPUR: India’s imports of palm oil are set to rise by as much as 100,000 tonnes a month from December after the government slashed import tax on the tropical oil, making it cheaper than rival edible oils, industry officials said on Friday.
Higher imports by India, the world’s biggest buyer of palm oil, will support benchmark Malaysian palm oil prices that hit their highest level in eight years this month, but could weigh on US soyoil futures.
India on Thursday slashed import tax on crude palm oil (CPO) to 27.5% from 37.5% as it tries to curb rising food prices.
“The cut has made palm oil more competitive as refiners have to pay 7.5% less tax on palm oil imports compared with soyoil and sunflower oil,” said Sudhakar Desai, president of the Indian Vegetable Oil Producers’ Association (IVPA).