India cuts tax on crude palm oil imports to help consumers, refiners

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India cuts tax on crude palm oil imports to help consumers, refiners
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India has cut its tax on crude palm oil (CPO) imports to 5% from 7.5%, the government said in a notification, as the world's biggest edible oil importer tries to rein in local prices of the commodity and help domestic refiners and consumers.

The reduction in the tax, known as the Agriculture Infrastructure and Development Cess , will widen the gap between the CPO and refined palm oil import duties, effectively making it cheaper for Indian refiners to import CPO, industry officials told Reuters.Register

"This will help Indian refiners, but government needs to increase the difference further to 11% to encourage local refining." India imports more than two-thirds of its edible oil needs and has been struggling to contain a rally in local oil prices over the last few months. Refined palm oil imports accounted for nearly half of India's total palm oil imports in the past few months, said Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil brokerage and consultancy firm.

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