Indian import tax unlikely to impact palm oil freight rates

24 January 2013 04:37  [Source: ICIS news]

SINGAPORE (ICIS)--Palm oil freight rates from southeast Asia to India are not expected to change significantly in the short term as the south Asian country plans to introduce import tax on crude edible oil, shipbrokers said on Thursday.

“Prices will not likely change as demand for palm oil in India will continue to be stable-to-firm in the next couple of months,” an Asian shipbroker said.

Indian authorities announced early in the week that crude palm oil (CPO) and soybean oil imports will be taxed at 2.5%.

Meanwhile, the recent move by Malaysia to allow duty-free CPO exports for February may help stabilise import demand from India, sources said.

“The [expected] import tax in India will likely be balanced out by Malaysia’s tax exemption on CPO exports,” another shipbroker based in Asia said.

India largely imports palm oil from Indonesia and Malaysia.

Palm oil freight rates from southeast Asia to India for a 10,000 tonne vessel were assessed at $43.00-47.00/tonne (€32.25-35.25/tonne) for the week ended 18 January, according to ICIS data.

($1 = €0.75)

By: Muhamad Fadhil
+65 6780 4356

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