Malaysian CPO Price is Still Depressed India's Import Tax Policy

By : Abraham Sihombing And Aldo Bella Putra | Tuesday, August 15 2017 - 19:03 IWST

5166
5166

INDUSTRY.co.id - Jakarta - Malaysian crude palm oil (CPO) prices fell in early trading on Tuesday (15/08/2017) morning following a decline in prices in the previous trading session.

"The price decline is due to the negative sentiment that comes along with India's plan to raise the import tax of CPO and other vegetable oil," said Agus Chandra, an analyst of PT Monex Investindo's commodity products in Jakarta, Tuesday (15/08/2017).

According to the plan, the Indian government, the world's largest vegetable oil consumer, raised its CPO import tax to 15% on Friday last week. However, the move was followed by a 25% increase in CPO import tax returns. It aims to protect local CPO farmers against the arrival of cheaper imported goods from Malaysia and Indonesia.

"Despite this, the decline in crude oil prices helped boost negative sentiment towards CPO prices. Crude oil prices tumbled along with the strengthening of the US dollar exchange rate and the decline in Chinese domestic demand," Agus said.

Furthermore, Agus said that the decrease of CPO is also caused by other negative sentiment arising from the release of data conducted Interrtek Testing Service reporting Malaysian CPO export decline of 14.6% during 1-15 August 2017.

"During this period, the volume of Malaysian CPO exports fell to 512,039 tons compared to the same period in the previous month of 599,414 tons," Agus added.

Agus explained that CPO price technically will drop to the nearest support point at the level of 2620 ringgit per ton before finally drooping at 2,570 ringgit per ton. "However, if the price creeps up and is able to break the 2,700 ringgit per tonne level, then the CPO price will continue to move to 2,740 ringgit per ton," Agus said. (Abraham Sihombing)

News Comment

Today's Industry

President Jokowi tried Semarang Solo Toll Road Section III: Bawen Salatiga, at Salatiga Toll Gate, Tingkir Tengah Village, Tingkir Sub-district, Salatiga City, Central Java, Monday (25/9) afternoon. (Photo: Humas / Jay)

Selasa, 26 September 2017 - 07:56 WIB

President Jokowi Working Visit to Bali

President Joko Widodo and First Lady Iriana Jokowi continue working visit to Bali Province after inaugurating Semarang-Solo Toll Road Section III Bawen-Salatiga at Salatiga Toll Gate, Tingkir…

Mount Agung

Selasa, 26 September 2017 - 07:36 WIB

Foreign Tourists in Bali Not Affected Related to Volcanic Activity of Mount Agung

Foreign tourists (Wisman) who are enjoying holidays in Bali until now is not affected by increased volcanic seismic activity of Mount Agung which increased because the distance about 85 kilometers…

Mount Agung

Selasa, 26 September 2017 - 06:57 WIB

The Sterile Area of Gunung Agung Became Nine Kilometers

Status of Mount Agung became alert and sterile area which originally radius 6 kilometers from the peak of the mountain was expanded to 9 kilometer, and added by expansion of sectoral area which…

President Jokowi and TNI Commander Gatot Nurmantyo (Military Special Photos)

Selasa, 26 September 2017 - 06:29 WIB

Statement of the TNI Commander is not a Public Consumption

Head of Information Center (Kapuspen) TNI Maj. Gen. Wuryanto, asserted, the statement of TNI Commander General Gatot Nurmantyo about the institution ordering 5,000 weapons by taking the name…

Minister of Industry, Airlangga Hartarto

Selasa, 26 September 2017 - 05:55 WIB

Minister of Industry: Provision of Tax Allowance No Longer Based on Amount of Investment, But Manpower

Minister of Industry, Airlangga Hartarto said the Ministry of Industry is proposing to provide fiscal incentives for export-oriented labor intensive sectors in order to boost national industrial…