India bans imports of refined palm oil, most of which are from Malaysia

[Andhadhun]

https://www.theedgemarkets.com/article/india-bans-imports-refined-palm-oil-most-which-are-malaysia

India bans imports of refined palm oil, most of which are from Malaysia
Emir Zainul
https://www.theedgemarkets.com/source/theedgemarkets.com

January 08, 2020 20:33 pm +08

KUALA LUMPUR (Jan 8): The Indian government has banned imports of refined palm oil into the country, according to a government notification sighted by theedgemarkets.com.

According to the notification, the import policy for refined bleached deodorised palm oil and refined bleached deodorised palmolein has been amended from ‘Free’ to ‘Restricted’.

The new policy is believed to be in response to Prime Minister Tun Dr Mahathir Mohamad's criticism on India's actions in the Kashmir region and its new citizenship law.

Note that India is the world's biggest importer of palm oil, where it imports most of its refined palm oil from Malaysia and crude palm oil from Indonesia.

Malaysia exported palm oil worth some US$1.65 billion (RM6.9 billion) to India in 2018. Palm oil accounts for 2.8% of Malaysia's gross domestic product and 4.5% of total exports.

The notification dated Jan 8 read: "In exercise of powers conferred by Section 3 of FT (D&R) Act, 1992, read with paragraph 1.02 and 2.01 of the Foreign Trade Policy 2015-2020, as amended from time to time, the Central Government hereby amends the import policy of items under Exim Code 1511 90 of Chapter 15 of ITC (HS), 2017, Schedule-1 (Import Policy)."

Items under Exim Code 1511 90 includes refined bleached deodorised palm oil and refined bleached deodorised palmolein.

As such, the effect of the notification is that the import policy for said items is amended from 'Free' to 'Restricted'.

Yesterday (Jan 7), Reuters reported India has informally asked palm oil refiners and traders to avoid buying Malaysian palm oil, according to sources.

 

[Sheikh Rauf]

Excellent now it will go to SL or bangladesh then smuggle to india.

 

[Indos]

Most probably to benefit India refinery industry.

 

[Surya 1]

Excellent now it will go to SL or bangladesh then smuggle to india.

It is banned irrespective of country from which it is imported.

 

[Andhadhun]

Most probably to benefit India refinery industry.

It was also benefit malaysia. Malaysia can now have pakistan and Zakir Naik.

 

[Sheikh Rauf]

It is banned irrespective of country from which it is imported.

thats why its called smuggling other wise same thing was import and export.

 

[Surya 1]

thats why its called smuggling other wise same thing was import and export.

Smuggle a goods one USD a kg is not a viable preposition. It will be many more time costly to Smuggle that at a price at which it can be sold.

 

[Andhadhun]

Smuggle a goods one USD a kg is not a viable preposition. It will be many more time costly to Smuggle that at a price at which it can be sold.

If smuggling "Oil" was profitable, India would have been the leading nation in smuggled Crude Oil and Petrol.

 

[Protest_again]

Excellent now it will go to SL or bangladesh then smuggle to india.

Palm oil is highly price sensitive. Here in India, price of refined palm oil is about 5 rupees less than sunflower or rice brands oil. Its difficult to do re-exporting within that margin. But they can try. We'll not loose sleep if they want to loose money.

 

[War Thunder]

It is banned irrespective of country from which it is imported.

He said smuggled.
I'm sure you know the difference.
If india is the biggest importer then it surely means there is huge demand. Where do you suppose that demand will be filled if not by black market?
Malaysia won't feel the toll, but india will.

 

[American Pakistani]

Malaysia should ban imports from India too. There are many Bharti who buys Indian only products in Malaysia. Let these clown bhrti loose some money too.

 

[Areesh]

It was also benefit malaysia. Malaysia can now have pakistan and Zakir Naik.

And you can have your Gau mutra

Win win for all

 

[Surya 1]

He said smuggled.
I'm sure you know the difference.
If india is the biggest importer then it surely means there is huge demand. Where do you suppose that demand will be filled if not by black market?
Malaysia won't feel the toll, but india will.

And I have already answered it. I hope you can read and understand that.

 

[TNT]

Time is right for Pakistan to offer military equipment for palm oil. We wont need to spend dollars on paml oil and also sell our hardware.

 

[Protest_again]

He said smuggled.
I'm sure you know the difference.
If india is the biggest importer then it surely means there is huge demand. Where do you suppose that demand will be filled if not by black market?
Malaysia won't feel the toll, but india will.

There is no inherent demand for palm oil. It's just one form of oil albeit a bit cheap.

You think people can smuggle into India at price lower than organized oil sector. It's not like palm oil is completely banned. We'll just route it from another country mostly from Indonesia.