KUALA LUMPUR: The higher import tax imposed on crude and refined palm oil by India and soybean oil production are factors which can influence crude palm oil (CPO) prices in 2018.
Palm Oil Analytics owner and co-founder, Dr Sathia Varqa said India’s import tax hike was the fourth in less than six months, and imposed to push up the prices of rapeseed to benefit Indian farmers.
“Although the impact is expected to be temporary, this (higher import tax) will make Malaysia’s key commodity export more expensive in the world’s second-most populous nation.
“I do not think they (India) will impose another import tariff in the near term (after this),” he said during his presentation on “Global Economics and Market Volatality – Impact on Commodities” at the annual Palm and Lauric Oils Price Outlook Conference and Exhibition 2018 (POC 2018) yesterday.
Varqa said the price and demand of other vegetable oils, such as soybean oil, would also affect CPO prices.
“Argentina is currently facing its worst drought, hitting soybean production. The lower production will raise soybean oil prices, which in turn will help increase palm oil prices,” he added. — Bernama