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

The President Director of PT Indo Premier Sekuritas, Moleonoto

Minggu, 13 Juni 2021 - 11:33 WIB

Promote Exchange Traded Fund, Indo Premier Holds ETFest 2021

The optimism of Indonesian capital market investors continues to squirm during the Covid-19 pandemic, despite the JCI has been under selling pressure in recent weeks. This optimism is reflected…

President Jokowi on Thursday (10/06) inspected mass COVID-19 vaccination at Kampung Rambutan Bus Station, Jakarta. Photo by: BPMI of Presidential Secretariat/ Muchlis Jr

Kamis, 10 Juni 2021 - 22:15 WIB

President Jokowi Inspects Mass COVID-19 Vaccination at Kampung Rambutan Bus Station

President Joko “Jokowi” Widodo on Thursday (10/06) inspected mass COVID-19 vaccination at Kampung Rambutan Bus Station, Jakarta.

President Joko Widodo

Kamis, 10 Juni 2021 - 21:00 WIB

President Jokowi: Limited Face-to-Face Learning Will Be Done With Extra Caution

The Government has announced plan to allow face-to-face learning at schools in the new academic year in the upcoming July. Related to this plan, President Joko “Jokowi” Widodo has ordered…

President Jokowi inspects mass vaccination at Indoor Stadium of KElapa Dua Sport Center in Tangerang regency, Banten province, Wednesday (09/06/2021). (Photo: Bureau of Press, Media, and Information of Presidential Secretariat/Muchlis Jr)

Kamis, 10 Juni 2021 - 20:00 WIB

Gov’t Aims for One Million Vaccinations Per Day in July

The Government has announced target to give 700,000 jabs of vaccine per day in June and one million jabs per day in July. During inspection at mass COVID-19 vaccination site on Wednesday (09/06)…

President Jokowi inspects mass COVID-19 vaccination at RSUI Depok, West Java, Wednesday (9/6). (Photo by: BPMI/Muchlis Jr)

Kamis, 10 Juni 2021 - 19:00 WIB

President Jokowi Inspects Mass COVID-19 Vaccination at Universitas Indonesia Hospital in W. Java

President Joko “Jokowi” Widodo, on Wednesday (9/6), inspected mass COVID-19 vaccination at Universitas Indonesia Hospital (RSUI), Depok, West Java.