KUALA LUMPUR, Nov 1 (Bernama) -- The local palm oil industry is poised togain significantly by way of increased exports following the decision bythe Indian government to lower import duty on crude palm oil (CPO).
The import duty on CPO and its fractions of edible grade had now beenreduced to 65 percent from 75 percent.
Malaysian Palm Oil Promotion Council (MPOPC) chief executive officer(CEO), Datuk Haron Siraj told Bernama today that the lowering of theimport duty would be a boost to the local market.
"However, it will not create any possibility for the price to reach thelevel of RM2,000 per tonne," he added.
Haron said there was a chance that the price could rise above the RM1,000mark.
The reduction in the import duty, he said, would reduce local stocks assellers would be keen to offer more and that would help sustain the priceat a good level.
In the current economic slowdown, the news would provide a supportive armfor Malaysian primary commodity exports, as India is the largest importerof palm oil products.
Local palm oil exporter has the ability to gain more market share ofedible oil in India now that the Indian government has granted the long-awaited import duty reduction.
The composition of India's total oils and fats last year were 67 percentpalm oil, 17 percent soyabean oil and 12 percent sunflower oil.
Last year India imported 3.55 million tonnes of palm oil, of which 60percent were from Malaysia.
Malaysia, however, has to face stiff competition from Indonesia. Localpalm oil industry was in the limelight in 1998 when buyers then werewilling to pay as high as RM2,500 per tonne.-- BERNAMA