Minister expresses concern over CPO import duty to India

Indonesias Trade Minister Enggartiasto Lukita has expressed concern over Indias decision to raise crude palm oil import duty from 7.5 percent to 15 percent, during his meeting with Indian Minister of Processed Food, Harsimrat Kaur Badal, here on Wednesday.

"We have expressed our concern over the increase in palm oil import duty by 100 percent," Enggartiasto stated.

He noted that the Indian delegation in the meeting had asserted to hold an internal discussion regarding Indonesias objection.

Crude palm oil (CPO) is Indonesias main export commodity.

"We would convey the Indonesian governments concern over the import duty to our related institution in order to find a solution," Harsimrat explained.

Previously, Indias Finance Minister had announced the increase in CPO import duty to 15 percent.

The import duty for processed palm oil import has also been raised to 17.5 percent and 25 percent, from its previous import duty of 12.5 percent and 15 percent. Palm oil classification is based on its level of quality.

A data of the Indonesian Palm Oil Association (Gapki) showed that Indonesias export of palm oil to India during the first semester of 2017 had recorded significant increase of 43 percent compared to last years export, from 2.6 million tons to 3.8 million tons.
Reported by Vicki Febrianto.

Source: ANTARA