To Know India’s Palm Oil Trade in Pandemic

Foto by Hendra/sawitfest 2021
To Know India’s Palm Oil Trade in Pandemic

InfoSAWIT, NEW DELHI – India is the biggest vegetable oil consumer in the world. In 2016/2017 domestic consumption to palm oil reached 9,3 million tons. 98,97% were imports from Malaysia and Indonesia. It means, India just produced 1,027% palm oil from its total needs.

What is interesting is that European Union and China just used 46% and 58% of their palm oil to produce food. The rests were used to produce cosmetics, oleo-chemical, and pharmacy.

While India used 94,1% palm oil to produce food, namely ingredients in kitchen. This makes palm oil important for vegetable oil economic in the country.

To press palm cooking oil price which led to inflation, the government of India on 29 June 2021 cut off incoming tax of crude palm oil (CPO) to be 10% from the previous 15% for three months to increase the social welfare. The discount also decreased CPO tax tariff to be 30,25% from the previous 35,75%.

Palm oil imports in India hardly reached 60% of the total vegetable oil import. In 2020, palm oil imports in the country decreased to be 7,2 million tons from 9,4 million tons in 2019 because of Covid-19 pandemic.

As quoted from Indiatoday, the tariff tax relief in the country did impact to palm oil decreasing price in June 2021 in the domestic markets. This was running because palm oil price in the world gets much more expensive from US$ 527,50/ton on 5 May 2020, to be US$ 971/ton on 29 June 2021. The significant increasing price leads vegetable oil price expensive too in India. (T2)

Source: InfoSAWIT, September 2021