Malaysia-Indonesia giving special incentives to export of refined palmolein

29-Oct-2024 07:30 PM

Singapore. The world's two top palm oil producing and exporting countries - Indonesia and Malaysia - are giving special incentives to promote the export of refined category palm oil and palmolein instead of crude palm oil (CPO).

This is a matter of concern for India because there is a greater need for import of crude category rather than refined category.

There is a danger of increase in import of refined oils from these two countries as well as Nepal and Bangladesh. Thailand can also be included in this list in the coming time.

Although the import duty on refined edible oils in India has been increased to 35.75 percent, but if the tax level in the exporting countries remains low and the price of crude edible oils remains high, then the import of refined oil in India can increase. In India, CPO is imported in huge quantities by refining units and vegetable plants.

According to industry analysts, India has a free trade agreement with Nepal and Bangladesh, so the import of RBD palmolein or refined palm oil from Malaysia and Indonesia to India may increase through these two neighboring countries.

One possibility is that crude oil may be imported into Nepal and Bangladesh and then processed and refined and then the refined edible oil may be sent to the Indian markets.

Due to the increase in import duty, the price of edible oils in India has gone up, due to which oilseed producers are hoping to get a better price for their produce. But import of cheap oil may become an obstacle in this.