KUALA LUMPUR: India is expected to buy more Malaysian palm oil in the near term after its imports contracted by 60% in October following its import tax hike on refined palm oil from Malaysia, the Dewan Negara was told on Dec 11.
Deputy Primary Industries Minister Datuk Seri Shamsul Iskandar Mohd Akin said India raised the import tax on refined palm oil from Malaysia for six months from Sept 4 to protect and spur its palm oil refining industry and reduce dependence on vegetable oil imports.
This led to the palm import duty being increased to 50% (from 45%), and Indonesia also saw a similar rise for its palm oil exported to India, he said during Question Time.
Indian refiners reduced purchases from Malaysia in November, fearing that New Delhi could raise import taxes or enforce other measures to curb imports after Kuala Lumpur criticised New Delhi for its actions in Kashmir.
Shamsul, responding to a question from Senator Datuk A. Kesavadas Nair, said Malaysia’s exports of palm oil to India dropped 60% to 219,956 tonnes in October from 550,452 tonnes in September. – Bernama
