India to lower import duty on CPO from Indonesia

Medan, N Sumatra (ANTARA News) - India has decided to lower its 60 percent import duty on crude palm oil (CPO) from Indonesia as that country has become increasingly dependent on the Indonesian commodity, an official said.

Last year Indonesia met nearly 80 percent of India`s CPO imports which totaled 3.5 million tons, executive director of the Solvent Extractors Association of India B.V Mehta said here on Tuesday.

"The Indian government is still discussing a possibility of lowering its import duty on CPO from Indonesia. The reduction is important to ensure the smooth supply of CPO amidst India`s growing demand for the commodity. This year India is expected to import at least 4 million tons of CPO," he said at a meeting with members of the Indonesian Palm Oil Producers Association (GAPKI).

He said the Indian government would make every effort to facilitate the import of CPO while at the same time continuing its protection to its farmers` vegetable oil production.

The higher import duty on CPO from Indonesia was one of the ways to protect the vegetable oil production, he said.

"India has become quite dependent on Indonesia for CPO supplies, because Malaysia which is the world`s biggest CPO producer cannot meet India`s needs as much of its CPO is used to produce certain goods," he said.