Malaysia's palm oil export duty to increase on higher reference prices
This story was originally published at 12:31 IST on 19 December 2024
Register to read our real-time news.Informist, Thursday, Dec. 19, 2024
MUMBAI – The Malaysian government has announced an increase in palm oil export duty for January 2025, driven by a rise in the reference price of crude palm oil. Although the export duty rate remains steady at 10%, the amount payable will go up due to higher crude palm oil prices.
The January 2025 reference price for crude palm oil is estimated to be 5,001.72 ringgit per tonne, which is up 530.33 ringgit from the December reference price of 4,471.39 ringgit per tonne. This results in the export duty increasing from 447.14 ringgit per tonne in December to 500.17 ringgit per tonne in January, an addition of more than 50 ringgit per tonne. In US dollars, this represents a rise of $11.97 per tonne, from $100.12 to $112.09.
"They have kept 10% export duty and increased reference prices, which means that export costs will also increase. This is vis-a-vis what Indonesia is doing. This is done to increase their profit margin," Rahul Chauhan, director of IGrain India said.
This increase could affect Malaysia's competitiveness in the global palm oil market. However, India's recent hike in palm oil import duties, combined with rising costs, could dampen demand.
"Malaysia's export tax for crude palm oil works on a progressive rate structure, starting from 3% when prices are in the range of 2,250-2,400 ringgit per tonne. The increase in reference prices was in line with market expectations due to wet weather in Malaysia hampering production and affecting logistics," Indrajit Paul, head of research of Agrocorp International, said. End
US$1 = INR 85.07
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Anjali Lavania
Edited by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
