Duty cut on palm oil to cool prices of cooking oil Consumers | Malaysian Palm Oil Council Russia

Duty cut on palm oil to cool prices of cooking oil

Consumers can expect some relief from the high cooking oil prices as the government has cut import duty on crude palm oil by 5.5 percentage points, a move that will reduce its price by ?4, 657 per tonne, for three months. The revenue department on Tuesday issued a notification to reduce the effective import duty on crude palm oil to 30.

25% from 35.75% between June 30 and September 30.Duties on import of refined palmolein and refined palm oil have also been reduced from 45% to 37.

5%. However, these oils are in the restricted category, hence the impact of import duty cut will be limited. Cooking oil prices had doubled during the past one year, driven by historic rally in the international prices.

Industry insiders said the move will help balance interests of consumers and those of farmers as duty cut is limited to three months, which will ensure that cheaper imports do not coincide with the arrival of domestic crops."The duty cut can suppress edible oil prices in India, " said Rahul Chauhan, director at commodity market research firm IGrain India. "However, we will have to wait and watch if the prices at the KLC (Kuala Lumpur Commodities Exchange) jump on Wednesday after opening up of the market.