INDIA TO REVIEW PALM OIL DUTY

INDIA will give serious consideration to Malaysia’s request to review its import duty on Malaysian crude palm oil. Datuk Seri Najib Razak made the request after meeting his Indian counterpart, Narendra Modi.

DUTY WAS PREVIOUSLY 15 PER CENT BUT IS NOW AT 30 PER CENT STAKEHOLDERS WELCOME COMMITMENT BY MODI INDIA IMPORTS 14.5 MILLION TONNES OF VEGETABLE OIL ANNUALLY

INDIA will consider reviewing its recent increase in import duty on Malaysian crude palm oil (CPO), Prime Minister Datuk Seri Najib Razak said.

In November, the Indian government doubled the import duty on Malaysian CPO to 30 per cent from 15 per cent to support its local refiners.

“The palm oil import duty increase was somewhat higher than that of any other vegetable oils, so I want it to be looked into again by the Indian government.

“Prime Minister Narendra Modi said he will give serious con- sideration to the request,” he told Malaysian media here.

Present were International Trade and Industry Minister Datuk Seri Mustapa Mohamed and MIC president and Health Minister Datuk Seri Dr S. Subramaniam.

Najib, who is also finance minister, said the import duty increase could impact the purchase of palm oil as India was Malaysia’s second largest buyer.

In November, India also increased the import tax on soya oil and sunflower oil to 30 per cent and 25 per cent from 17.5 per cent and 12.5 per cent, respectively.

India imports about 14.5 million tonnes of vegetable oil from Malaysia and Indonesia annually to meet its domestic demand for edible oil.

Indonesia and Malaysia account for 85 per cent of the world’s CPO output and 91 per cent to palm oil exports.

In an immediate reaction, Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong thanked Najib for conveying Malaysia’s concern to Modi during his visit to India.

“Najib has always focused on ensuring smallholders get a stable and good price for their agricultural produce.

“India is one of Malaysia’s biggest palm oil export destination. Any action by India will affect Malaysia’s export volume, and, subsequently, our palm oil stockpile.”

Malaysian Palm Oil Association chief executive officer Datuk Mohamad Nageeb Ahmad Abdul Wahab said export volumes had dropped since the tariffs were increased in November.

“India is one of Malaysia’s biggest buyers of palm oil. We laud India’s consideration to reduce tariffs on palm oil.

“If the tariffs are lowered significantly, it will definitely make palm oil more competitive than other types of imported vegetable oils for Indian traders.”

Najib said Modi also indicated that India would consider awarding more highway jobs in India to Malaysian companies.

IJM Corporation Bhd was recently awarded a US$350 million (RM1.3 billion) highway construction project in the country. In November, IJM said it would develop the Solapur-Bijapur section of the new National Highway 52 between the states of Maharasthra and Karnataka.

Najib said he informed Modi that Malaysia was seriously considering awarding a railway project connecting Seremban to Port Klang to Indian company Ircon.

“However, we set the condition that the offer should be acceptable to both parties. There will be follow-up discussions.”

He said he also requested for additional seat capacity for flights from Malaysia to India, and Modi envisaged that these destinations could be to smaller towns.

“Since my last visit to India in April last year, the Indian government had approved an additional 1,861 seats to Malaysia and nearly 99 per cent of the additional seats have been used, so I asked for more.”

Page 1 pic: Prime Minister Datuk Seri Najib Razak paying a courtesy call on Indian Prime Minister Narendra Modi in New Delhi yesterday.