India cuts crude palm oil import tax, potentially boosting imports

India, which imports palm oil mainly from Malaysia and Indonesia, could buy 500, 000 tonnes of additional palm oil in these three months and average monthly imports could be around 850, 000 tonnes, Sandeep Bajoria, chief executive of Sunvin Group, a vegetable oil broker, said. (File pic shows harvesting at a Felda plantation.)

MUMBAI: India on Tuesday cut the base import tax on crude palm oil to 10% from 15% for three months, the government said in a statement, as the world's biggest vegetable oil buyer tries to dampen near record high prices.

The tax cut could make palm oil more attractive than rival soyoil and sunflower oil for Indian refiners and boost imports of the tropical oil in the next three months, supporting benchmark Malaysian prices.