India's import of vegetable oils during November 2018 is reported at 1,133,893 tons compared to 1,248,810 tons in November, 2017, a decline of 9%, according to data compiled by the Solvent Extractors’ Association of India (SEA).
India had signed a comprehensive Economic Cooperation Agreement (MICECA) with Malaysia on 27thOctober, 2010. As per provisions of MICECA Agreement Between India and Malaysia for MFN tariff, import duty on CPO and refined Palm Oil and others will gradually reduce from base rate for the period 1.1.2012 to 31.12.2019 and the upper limit of the tariff was fixed.
Currently, under MICECA India has imposed highest import duty on CPO at 44% and RPO 54% w.e.f. 14th June, 2018. According to MICECA, the CPO & RPO upper limit of duty to be revised downward to maximum 40% to 45% respectively latest by December 31, 2018.
In anticipation of likely reduction of import duty by India on palm oil by December 31,2018, shipment has slowed down time being, which is likely to pick up from January’19 and onwards. Also palm oil prices are historical low of last 10 years and the spread between palm and soft oil has increased, which has made palm oil more attractive to import by India.