India’s Reduced Import Duty on Palm Oil Good for Malaysian Industry - MPOB

The Indian government’s decision to reduce its import duty on crude palm oil (CPO) from 15% to 10% is a boon for Malaysian palm oil industry, giving immediate relief to the smallholders, said the Malaysian Palm Oil Board (MPOB).  

Director-general Dr Ahmad Parveez Ghulam Kadir said CPO export to India, the world’s largest palm oil consumer, is bound to increase further in near future.  Based on the industry regulator’s data, Malaysia’s palm oil export to India increased by more than eight folds to 1.29 million tons during the five-month period to May 2021 from 0.15 million tons recorded during the same period in 2020.  

India’s Ministry of Finance announced that the new tax rate will be effective from June 30 to September 30, 2021.  The Indian Vegetable Oil Producers’ Association (IVPA) said the effective import duty on CPO which includes an agriculture development cess and a surcharge has now come down to 30.25% from 35.75%.