India extended a policy allowing it to import refined palm oil at a lower duty and allowed the import of 51.000 tonnes of cotton duty-free in 2023; the government announced late Thursday.
It has been extended “until further orders,” according to the government. India reduced the basic import tax on refined palm oil to 13.75 percent in December 2021, down from 19.25 percent.
The duty contraction boosted the appeal of refined palm oil imports to Indian refiners, who had earlier inclined toward importing crude palm oil.
Sandeep Bajoria, chief executive of Sundin Group, a vegetable oil brokerage and consultancy firm, said that Because of the lower duty, refined palm oil imports increased this year. Even in the coming months, we will see monthly imports of around 200,000 tonnes of refined palm oil
India imports more than two-thirds of its edible oil needs and has struggled in recent months to keep domestic oil prices stable.
Palm oil is primarily imported from top producers in Indonesia and Malaysia, while other oils, such as soy and sunflower, are imported from Argentina, Brazil, Ukraine, and Russia.
India also increased the duty-free import quota for extra-long staple cotton to 51.000 tonnes for 2020 from 419 tonnes in 2022.
According to the government, the south Asian country also allowed imports of 150,000 tonnes of lentils and 34.000 tonnes of almonds at 50 per cent of the applied duty under the tariff-rate quota (TRQ).