Global Markets: Oilseeds – India Tariff Cut Boosts Palm Oil Imports

Published 2020년 12월 11일

Tridge summary

India has reduced the tariff on crude palm oil by 10 percentage points to combat rising food prices, leading to an increase in the palm oil import forecast for 2020/21 by 200,000 tons. However, the forecast for sunflower oil has been reduced by 100,000 tons due to tight global supplies and the additional palm oil in the market. The demand for vegetable oil is expected to recover in 2021, following the economic impact of COVID-19. Algeria has emerged as a growth market for soybean exports, having significantly increased its imports. The EU has imposed a 25% duty on U.S. peanuts, which could affect U.S. peanut exports, although the total export forecast is only slightly lower from 2019/20. Global peanut supplies remain somewhat tight, particularly for high value peanuts where U.S. peanuts are competitive.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

India, the world’s largest importer of palm oil, cut its crude palm oil tariff 10 percentage points in late November to curb rising food prices. Palm oil export prices have soared over 60 percent since May, their highest levels in 6 years. The high cost of vegetable oils, coupled with the economic impact of COVID-19,constrained India demand and imports in 2019/20. In response to the tariff reduction, the 2020/21 palm oil import forecast is up 200,000 tons as the lower tariff will make palm oil more affordable to consumers. The sunflower oil forecast is reduced 100,000 tons in response to tight global supplies and the additional palm oil in the market. Demand for vegetable oil is expected to recover assuming an improving economy in 2021 as the impact of COVID-19 diminishes over time. Prices of all major vegetable oils have strengthened considerably since May. Adverse growing conditions in key production areas have combined with strong demand in China to boost underlying oilseed ...

Source: Agfax