JAKARTA, Sept 29 Asia Pulse - Indonesian exports of crude palm oil (CPO)to India are predicted to decline by 30 per cent this year despite Indianpolicy of cutting its import benchmark price for that commodity, theassociation of palm oil companies (Gapki) said.
Gapki chairman Derom Bangun said the benchmark price cut will increase thebuying power of the Indian consumers, but exports of CPO to that countrydeclined by 600,000 tons in the first 8 months of this year.
Bangun said Indonesian exports of CPO to that country reached only 1million tons in the first 8 months of this year down from 1.6 million tonsin the same period last year.
He said the decline in exports was caused by the Indiana regulationsetting a minimum limit for beta carotene content of 500 mg per kg of CPOallowed to enter the Indian market.
India imposes an import duty of 70 per cent on CPO not meeting thestandard.
The regulation makes Indonesia CPO less competitive facing
Malaysian CPO on which the import duty is only 65 per cent.