Detail

India

Oilseeds, oils and meals

Palm oil

01/12/2019

Trade

Import policy

Reduced – in compliance with a free trade agreement signed with ASEAN in 2009 – the tariff on palm oil imports from the regional bloc. The duties for crude and refined palm oil were reduced from, respectively, 40 percent and 50 percent to 37.5 percent and 45 percent.

Trade agreements – India / ASEAN (palm oil): In line with a free trade agreement signed with ASEAN in 2009, India further reduced its tariff on palm oil imports from the bloc, effective 1 January 2020. The duties for crude and refined palm oil have been lowered from, respectively, 40% and 50% to 37.5% and 45%. Considering that India’s MFN import duties for competing oils (notably soyoil and sunflower oil) remained unchanged, the new preferential duties granted to ASEAN suppliers are expected to make imports of palm oil more attractive. As for the rates charged on crude and refined palm oil, the new duty structure entails a tax differential of 7.5% compared to 10% previously – a change likely to affect the competiveness of India’s refining industry.