India Plans to Stop Importing Palm Cooking Oil

India Plans to Stop Importing Palm Cooking Oil

Photo by : Aden Setya / Sawitfest 2021

Palmoilmagazine, MUMBAI - India planned to cut off some vegetable oil taxes to get cheaper price in its domestic markets after the war in Ukraine and Indonesia’s palm oil export ban which made expensive vegetable oil price.

Until now India figures out how to get taxes from agricultural infrastructures and development by crude palm oil (CPO) cess to be 5%, as the anonymous said because this information is still confidential. The numbers of tax would be discussed further, as the anonymous said, quoted from Bloomberg.

Cess would be available on basic tax tariff on certain goods, used to fund agricultural infrastructure projects while the income tax for CPO has been erased.

India is vulnerable on the expensive vegetable oil because the country really depends on imports which reached up to 60% from the needs. The past two year – increasing price expands the price after Russia invades Ukraine which stops sunflower oil exports and Indonesia bans palm oil exports to protect its domestic markets.

India tried to minimize the price by publishing the previous policy including reducing income tax for palm oil, soybean oil, and sunflower oil, limited the stocks to prevent the piles. It was successful to muffle but triggered higher expectation from the buyers which also increased the price in international level.

The government is searching ways to get cess on crude canola oil, olive oil, rice bran oil and palm kernel oil to be 5% from 35% to help the domestic supply increased, as the anonymous said. (T2)


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