India's Import Tax Income May Raise Malaysian CPO Price

By : Abraham Sihombing And Aldo Bella Putra | Wednesday, June 06 2018 - 23:30 IWST

Kebun Kelapa Sawit (Ist)
Kebun Kelapa Sawit (Ist)

INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) Malaysia opened at RM2.404 per ton on Wednesday (06/06/2018), or up 0.08% compared to the price at the close of trading on Tuesday (05/06 / 2018) of RM2,402 per ton.

On Tuesday's trading, Malaysia's strategic commodity prices moved in the range of RM2,382-2,410 per ton compared to today's trading in the range of RM2,399-2,412 per ton.

"The current price of Malaysian CPO is RM2.405 per ton. It looks likely to go up. The reason, ahead of the release of MPOB (Malaysian Palm Oil Board) data on June 11, 2018, Malaysian CPO inventory surveys conducted through polls show for five consecutive months between 1.80-4.70%, "said Arie Nurhadi, research analyst of PT Monex Investindo Futures, in Jakarta, Wednesday (06/06/2018).

Arie explained CPO exports and production looks down. The rate of decline in exports looks faster than production. In addition, the shipment of CPO to India in May 2018 and then looks down sharply.

India is the world's largest CPO consumer. Malaysian and Indonesian CPO exports to India have slowed since India established a series of import tariffs for edible oil from November 2017 to March 2018.

Part of Malaysia's CPO price decline is also expected as losses in the working day after Bursa Malaysia are closed for three long days following the announcement of a new government that won the General Election and the addition of an additional public holiday on May 1, 2018.

"In addition, the fasting period in Ramadhan this year also slows down the performance of the harvest because many Muslim workers in Malaysia and Indonesia run fasts," said Arie.

However, Arie said, news of India's plan to raise CPO import taxes sustained the commodity price hike today or just a day after reaching its lowest point in almost a month.

"The price of CPO contract for August 2010 shipment on Bursa Malaysia Derivatives Exchange rose 0.12% to RM2.405 per ton or equivalent to US $ 605.41 per ton," Arie concluded.

India, which is the world's largest CPO importer, is now considering raising import duties for the commodity. India currently imposed a 30% import tax on soybeans and 25% for rapeseed and sunflower oil, and CPO import tax by 44%. (Abraham Sihombing)

News Comment

Today's Industry

Presiden Jokowi hadiri Sidang Tahunan MPR 2018 (Foto Setkab)

Kamis, 16 Agustus 2018 - 18:00 WIB

President Jokowi is Optimistic of the People Able to Face Future Challenges

Jakarta - President Joko Widodo (Jokowi) said, the celebration of 73rd Independence Day on Friday (08/17/2018) tomorrow is a momentum to recall the spirit of Indonesian unity which has been…

Ilustrasi Sapi

Kamis, 16 Agustus 2018 - 17:30 WIB

Chaotic Cattle Milk, Government Obligation to Protect Farmers

Jakarta It is the responsibility of the government to take over the effects of the issuance of the Permentan revision relating to the absorption of cow milk, in response to the concerns of farmers.

Kementerian ESDM Luncurkan Contact Center ESDM136

Kamis, 16 Agustus 2018 - 17:00 WIB

Improve Public Information Services, Ministry of Energy and Mineral Resources Launch ESDM Contact Center 136

Jakarta - To further facilitate the public in obtaining information related to the ESDM sector, the ESDM Ministry on Wednesday (08/15/2018) launched the "Contact Center ESDM 136" service which…

Kementrian ESDM (Hariyanto/ INDUSTRY.co.id)

Kamis, 16 Agustus 2018 - 16:30 WIB

These are the Five Steps of ESDM to Increase Foreign Exchange and Strengthen Rupiah Exchange Rate

Jakarta - At a Limited Meeting (Ratas) held on Tuesday (08/14/2018), President Jokowi gave several directions related to the program to increase foreign exchange in the ESDM sector. The meeting…

Menteri Energi dan Sumber Daya Mineral (ESDM) Ignasius Jonan

Kamis, 16 Agustus 2018 - 16:00 WIB

Minister Jonan: Pertamina Must Buy Oil Production Results from National KKKS

Jakarta - Energy and Mineral Resources (ESDM) Minister Ignasius Jonan said the government requires PT Pertamina (Persero) to buy all crude oil production produced by the national Cooperation…