Pakistan and Turkey, following India, lower import duties on vegetable oils

Against the background of another increase in prices for vegetable oils, importing countries began to reduce import duties on them, sometimes to zero, in order to reduce domestic food prices.

Following India, the Turkish government decided to zero duties on imports of raw sunflower oil and safflower seeds by the end of the year. At the same time, the country has a zero duty on the import of sunflower seeds.

According to Oil World experts, the Pakistani government has announced a significant reduction in import duties on vegetable oils amid high world prices for them. It is expected that in comparison with the current level, the import duty on vegetable oils will be halved, the trade tax – from 17% to 8.5%, and the additional 2% import duty will be abolished.

Due to high taxes and duties on vegetable oil imports, Pakistan in July-September reduced purchases of palm and soybean oil by 19% to 831 thousand tons. in general, in 2020/21 MG (October-September), imports of palm oil decreased from 3.28 to 3.06 million tons compared to the previous season, and soybeans – from 109 to 64 thousand tons.

December palm oil futures on the Malaysian stock exchange rose 1.8% from Monday to 5,012 ringgit/ton or 1 1,208/ton on expectations of increased exports due to lower import duties by India and Pakistan.

December soybean oil futures on the Chicago Stock Exchange are trading at.1,370/ton this week, as the market is still under pressure from forecasts of an increase in the soybean harvest in Brazil and the United States.

Prices of sunflower oil offers for delivery in November rose to the highest level since May 2021 of F 1410-1430/ton FOB. India and Turkey’s reduction of import duties on vegetable oils will increase demand for sunflower oil, especially given the rise in the price of palm oil.

Graintrade

Tags: Turkey, vegetable oils, import duties, Pakistan, India