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India extends refined palm oil import policy to reduced duties

ProDentim


By Rajendra Jadhav

MUMBAI, December 29 (Reuters)India has extended its refined palm oil import policy to a lower duty and allowed imports of 51,000 tonnes of cotton at zero duty in 2023, the government said in a notification late Thursday.

The preferential tariff structure on refined palm oil was due to expire on December 31. It has been extended “until further notice”, the government said.

In December 2021, India reduce basic import tax on refined palm oil and reduced total taxes on their imports to 13.75% from 19.25% previously.

The reduction in duties has made imports of refined palm oil lucrative for Indian refiners, who traditionally prefer to import crude palm oil.

“Imports of refined palm oil have surged this year due to lower tariffs. Even in the coming months, we will continue to see imports of around 200,000 tonnes of refined palm oil per month,” said Sandeep Bajoria, managing director of Sunvin Group, a vegetable oil company. brokerage and consulting firm.

India imports more than two-thirds of its edible oil needs and has struggled to contain a rise in local oil prices in recent months.

The country imports palm oil mainly from major producers in Indonesia and Malaysia, while other oils, such as soybean and sunflower, come from Argentina, Brazil, Ukraine and Russia.

India has also increased the duty-free import quota of extra long staple cotton to 51,000 tons for next year from 419 tons for 2022.

The South Asian country has also allowed the import of 150,000 tons of lentils and 34,000 tons of almonds at 50 percent of the applied tariff quota (TRQ), the government said.

(Reporting by Rajendra Jadhav; Editing by Krishna Chandra Eluri)

((rajendra.jadhav@thomsonreuters.com; +91-22-68414378; Reuters Messaging: rajendra.jadhav.thomsonreuters.com@reuters.net))

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