NEW DELHI, Sept 4 (Reuters) - India has imposed an extra 5% tax on vegetable oil imports from Malaysia for 180 days, a government statement said on Wednesday, to help boost the country’s stagnating oilseed production.
India is the world’s biggest importer of vegetable oils, buying nearly $10 billion worth a year, its biggest import after crude oil and gold.
The country’s consumption of vegetable oils - including palm oil and soyoil - has trebled over the last 20 years as the population grew and incomes rose, while output has increased by less than a third.
India’s veg oil imports from Malaysia surged by 314% to nearly 2.6 million tonnes in the first half of 2019 from October-December 2018, the statement file:///C:/Users/u8002744/Downloads/29-2019%20English.pdf said.
Palm oil accounts for two-thirds of India’s vegetable oil imports.
India currently imposes a 40% import tax on crude palm oil and 50% on refined palm oils. But shipments of refined palm oils from Malaysia have since January been taxed only at 45%, under an agreement with Malaysia.
The new tax will be 50% on imports of veg oil originating in Malaysia, the statement added. (Reporting by Nidhi Verma; Editing by Alasdair Pal)