Economy

Indonesia, India palm groups to propose tax incentives to certified palm

Reuters Mumbai | Updated on March 28, 2019 Published on March 28, 2019

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India, the world's top vegetable oil importers, has cut taxes on palm oil import earlier this year

Indonesian Palm Oil Board (IPOB), the Solvent Extractors Association (SEA) of India and non-profit organisation Solidaridad Network are in talks to propose incentives on shipments of palm oil certified by Indonesia Sustainable Palm Oil (ISPO), industry officials said

The groups aim to propose an import tax cut for Indonesian palm oil shipments to India, R. Azis Hidayat, the head of ISPO Commission Secretariat said on Thursday

India, the world's top vegetable oil importers, has cut taxes on palm oil import earlier this year. But the tax imposed on palm from Indonesia, the world's top exporter, was higher than those imposed on Malaysia.

The Indonesian government has offered opening up market for Indian raw sugar in exchange for lower tax on Indonesian palm oil.

On Wednesday, ISPO said it has certified palm plantation covering 4.11 million hectares, which produced over 11 million tonnes of crude palm oil annually.

The IPOB said the incentives should encourage adoption of ISPO by local planters

Published on March 28, 2019
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