India has agreed to impose duties on the import of refined, bleached, and deodorized palm oil (RBDPO) from Indonesia at the same rate as that of Malaysia, Director General of Foreign Trade of the Trade Ministry Indrasari Wisnu Wardhana remarked in Jakarta on Monday.
"Thus, our exports have a huge opportunity to increase in the next few months. Our exports to India will certainly increase after we reached an agreement last week," he stated.
Since March 2018, India has raised duties on the import of CPO from Indonesia to 44 percent, from 30 percent, and its derivatives to 50 percent, from 40 percent. On the similar lines, India also stepped up duties on the import of CPO from Malaysia to nearly 45 percent.
However, at the 51st Asean Economic Ministers Meeting held in Bangkok on Tuesday (Sept 10, 2019), Indian Trade and Industry Minister Piyush Goyal stated that administratively, duties on the import of RBDPO from Indonesia and Malaysia had been equalized.
In fact, Trade Minister Enggartiasto Lukita had requested to equalize the tariffs of import duties during bilateral talks with Goyal on the sidelines of the AEM held in Bangkok on Sunday (Sept 8).
India is Indonesia's fourth-largest export destination and ninth-largest source of imported goods. Trade between both nations had reached US$18.7 billion in 2018, with Indonesia clocking a surplus of $8.7 billion.
Indonesia's exports to India in 2018 comprised coal worth $5.37 billion; CPO and its derivatives valued at $3.56 billion; natural rubber, $429.2 million; copper ore and concentrates, $414.9 million.
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