India’s palm oil imports are set to rebound in March and April to meet rising demand from hotels and restaurants, as lower shipments last month have depleted stocks, according to industry participants. Higher imports by India, the world’s biggest buyer of the edible oil, is likely to support benchmark Malaysian palm oil prices that hit .
India’s tax increase on crude palm oil imports could reduce shipments
India has imposed an additional tax on crude palm oil imports as the world’s biggest importer of vegetable oils tries to build domestic agriculture infrastructure by taxing imports, Finance Minister Nirmala Sitharaman said.
India cut the basic import tax on crude palm oil to 15% from 27.5%, but imposed a 17.5% “cess” – a separate tax – on the imports, Sitharaman said in her federal budget speech.
The cess would provide resources for “an immediate need to improve agricultural infrastructure,” Sitharaman said.
The tax increase will narrow the duty gap between palm oil and other edible oils, which could reduce India’s palm oil imports and potentially put pressure on Malaysian palm oil prices.
Tax hike on crude palm oil imports could reduce shipments, says FM Nirmala Sitharaman
India cut the basic import tax on crude palm oil to 15% from 27.5%, but imposed a 17.5% cess - a separate tax - on the imports, Sitharaman said in her federal budget speech
PTI | February 2, 2021 | Updated 09:05 IST
Union Finance Minister Nirmala Sitharaman
India has imposed an additional tax on crude palm oil imports as the world s biggest importer of vegetable oils tries to build domestic agriculture infrastructure by taxing imports, Finance Minister Nirmala Sitharaman said on Monday. India cut the basic import tax on crude palm oil to 15% from 27.5%, but imposed a 17.5% cess - a separate tax - on the imports, Sitharaman said in her federal budget speech.
India has imposed an additional tax on crude palm oil imports as the world s biggest importer of vegetable oils tries to build domestic agriculture infrastructure by taxing imports, Finance Minister Nirmala Sitharaman said on Monday.