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India's Finance Ministry raised the import duty on crude palm oil to 44% from 30% and on refined palmolein to 54% from 40%, effective March 1, 2018. Soft oils were left unchanged.
The Solvent Extractors' Association welcomed the move but objected to singling out palm oil.
India is a major importer of vegetable oils, so higher duties on palm oil cut import demand and shift buying toward soft oils. Palm oil prices face bearish pressure while soyoil and other domestic-crush oils gain support.
thehindubusinessline.comOur BureauMar 2, 2018After 400 past bearish policy events, PALMOIL moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.1%), and +0.2% over 20.
After 842 past bullish policy events, SBO moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
India, the largest palm oil importer, raised crude palm oil import duty to 44% from 30% and refined to 54% from 40% effective March 1, which curbs import demand and likely triggered the sharp one-day selloff.
