Area
India
Commodity Group
Oilseeds, oils and meals
Commodity
Palm oil
Date
01/12/2018
Policy Category
Trade
Policy Instrument
Trade agreement
Description
Lowered the tariff on palm oil imports from Association of Southeast Asian Nations (ASEAN) members, effective 1 January 2019 (in line with the provisions of an agreement signed with ASEAN in 2009).
Notes
In line with a free trade agreement signed with ASEAN in 2009, India has lowered its tariff on palm oil imports from ASEAN nations, effective 1 January 2019. For crude and refined palm oil, the rate has been reduced, respectively, from 44 percent to 40 percent and from 54 percent to 50 percent. Under a separate, bilateral treaty with Malaysia (Malaysia India Comprehensive Economic Cooperation Agreement), shipments of refined Malaysian palm oil will be taxed at a reduced rate of 45 percent, from 1 January 2019. As these reductions will narrow Indias duty difference between palm oil and competing vegetable oils (see MPPU Mar.18), the countrys purchases of palm oil are expected to rise in the coming months, with Malaysian exporters of refined palm oil enjoying an additional advantage. In the meantime, Indian farmer and industry representatives have expressed concern that the import concessions will discourage domestic oilseed production, halt the expansion of palm plantations and hurt local oil refiners.
