Indonesia has lowered the export levy on palm oil at 7.5% of the reference rate, bringing down the duty to $63 per tonne from $90, as per a government notification effective September 22.
Indonesia sets the weighted average price for palm oil - the reference rate - every month, to calculate export duty. The move is seen as a measure to ramp up shipments by the largest cultivator of palm oil.
Indonesia collects a levy on palm exports, which is used to fund re-planting projects as well as to offer subsidies on bio-diesel.
India imports around 9-10 million tonne of palm oil, mostly from Indonesia, Malaysia and Thailand.
Some of India's major importers of palm oil include Adani Wilmar, Patanjali Foods, Agro Tech Foods, and AVT Natural. As of FY23, India was importing up to 97% of the oil palm that it was consuming. Shares of Godrej Agrovet, a major producer and processor of palm oil, were sharply lower in Friday's trading session.
India's palm oil output is may rise three-fold in six years, Reuters quoted an industry official on September 20, as acreage of domestic plantations rises and existing plantations get ready for harvest.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
