KUALA LUMPUR, Jan 2 -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today underpinned by potential demand from India, which has revised the import duties on CPO and refined palm oil effective Jan 1.
New Delhi has cut import duties on CPO and refined palm oil from Southeast Asian countries. The duty on CPO was lowered to 37.5 per cent from 40 per cent while the tax on refined palm oil was cut to 45 per cent from 50 per cent.
Singapore-based Palm Oil Analytics owner and co-founder Dr Sathia Varqa said the the tax revision would make palm oil more competitive and would have a positive impact on CPO prices.
“Given India is the largest palm buyer in the world, the announcement had a significant positive impact on CPO prices on the first day of trading in 2020,” he told Bernama.