Malaysia: The impact of an increase in palm oil import tax by India is temporary

Published 2024년 12월 12일

Tridge summary

The Ministry of Plantation and Commodities in Malaysia remains confident that India's temporary increase in import tax on Malaysian palm oil is a protective measure for domestic prices and agriculture. This situation is part of a larger context where India, as the world's largest palm oil importer, will continue to need substantial supplies to meet its demand. The ministry underscores the importance of quality and sustainability in Malaysian palm oil, which is well-received in the Indian market despite tariff fluctuations. It also highlights the strategic advantages of the Asean-India Free Trade Agreement and the Malaysia-India Comprehensive Economic Cooperation Agreement in mitigating potential import tax surges for Malaysian crude palm oil. Furthermore, the ministry outlines a comprehensive plan that includes exempting export duties on crude palm oil, strengthening competitiveness through R&D, and the production of high-value-added products like bioplastics and biofuels, all aimed at ensuring the sustainable growth and success of the Malaysian palm oil industry.

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Original content

KUALA LUMPUR (Dec 11): The Ministry of Plantation and Commodities is confident the increase in import tax implemented by India on the price of Malaysian palm oil is temporary. In a reply at the Dewan Rakyat sitting on Wednesday, it said the increase was part of India's efforts to protect its domestic oil prices and support its domestic agricultural industry. "However, based on past experience, these tariff changes are usually temporary, and their impact on palm oil imports from Malaysia is only short-term. As the world's largest importer of palm oil with a population of 1.45 billion, India will always need palm oil to meet the country's domestic needs," it said in reply to Datuk Seri Hamzah Zainudin (Perikatan Nasional-Larut), who asked the ministry to state short-, medium- and long-term strategic measures to deal with the impact on the Malaysian palm oil industry following the 32% increase in import tax by India and a cut in the export levy rate by Indonesia. According to the ...

Source: Theedgemarkets