India: Palm oil prices rose to a maximum in three weeks

Published 2021년 7월 2일

Tridge summary

India has lowered import duties on crude and refined palm oil, leading to a surge in palm oil prices to a three-week high. The base import duty on crude palm oil has been reduced from 15% to 10% for the next three months, and the government has permitted the import of refined palm oil for the next six months. This is in an effort to decrease the domestic prices of vegetable oils. The rise in palm oil prices is also due to a decrease in production in Malaysia and an increase in exports, as well as an uptick in WTI oil prices and a recovery in soybean oil prices in the United States.

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

Original content

The tightening of quarantine in Indonesia, as well as India's decision to reduce import duties on vegetable oil and allow imports of refined palm oil, has led to a further rise in palm oil prices to a maximum in three weeks. According to the Ministry of Finance of India on June 29, India has reduced its base import duty on crude palm oil (CPO) from 15% to 10% from June 30 for a period of three months, including an additional tax on agriculture of 17.5%, and a 10% social security tax reduction will reduce the effective CPO tax rate from 35.75% to 30.25%. In order to reduce domestic prices for vegetable oils, the Government of India has allowed the import of refined palm oil for a period of 6 months, as well as for 3 months reduced the duty on imports of this product from 49.5% to 41.25%. September palm oil futures on the stock exchange in Malaysia yesterday rose 3.1% to 3710 ringgit per tonne ($ 892 / t) to the highest level in three weeks, adding about 10% in three weeks. ...

Source: Graintrade