The world’s two largest palm oil producers and exporters, Malaysia and Indonesia, an export tax war between these countries set to intensify soon which could sharply boost Indian edible oil imports and put pressure on its govt. to raise import duties yet again. Traders reported that tax war out to gain a larger chunk of the Asian oils market by planning liberalised tax rules on crude palm oil exports, the expected resulting fall in global prices could more than offset recent increases in duties by India to curb surging imports.
India’s edible oil import, just surpass last crop year’s record level of 4.4m tonnes. India imported about three million tonnes of edible oils in the first nine months of the oil season ‘99-00 (Nov-Oct) compared with 2.9m tonnes in the same year ago period, according to industry sources. Import of crude palm oil have risen to about 53 per cent of total oil imports from 31per cent in the beginning of the oil season,since the Indian govt. introduced differential import duties.
The Indian industry had favoured an effective import duty of 60 to 80 per cent on refined oils and 38.5 per cent on crude oils. During last month, India raised import duties on edible oils but the increase fell short of industry expectations and traders said it had little effect on imports. The effective duty for RBD palmolein and refined oils after the increase worked out at 44 per cent, and at 27.5 per cent for crude oils, as reported by traders.
Market
Update
(Oil Seeds)
