MUMBAI: India has cut import taxes on crude and refined palm oil from Southeast Asian (Asean) count­­ries after a request from suppliers, a government notification said.

The reduction will lead to higher imports of palm oil by the world’s biggest edible oil buyer in coming months as it would narrow the difference between the tropical vegetable oil and competitors such as soyoil and sunflower oil.

The duty on crude palm oil was lowered to 40 per cent from 44pc, while a tax on the refined variety was cut to 50pc from 54pc, according to the notification issued late on Mon­day. The cuts took effect on Tuesday.

Malaysian shipments of refined palm oil will be taxed at 45pc compared with 54pc earlier, the government said in a separate notice.

In March 2018, India raised the import tax on crude palm oil to 44pc from 30pc and lifted the tax on refined palm oil to 54pc from 40pc.

Palm oil has being more competitive due to the duty reduction and this will lead to higher imports from January onwards, said Sandeep Bajoria, a Mumbai-based vegetable oil importer.

Published in Dawn, January 2nd, 2019