With an aim to protect interest of domestic players, the government has imposed 5% safeguard duty on imports of refined palm oil from Malaysia, taking the customs levy to 50% for six months. The safeguard duty on 'Refined Bleached Deodorized Palmolein and Refined Bleached Deodorized Palm Oil' has been imposed following a recommendation by the commerce ministry's investigation arm Directorate General of Trade Remedies (DGTR) for 180 days. The Government has issued a notification to increases the rate of duty of customs by 5% on the product, commonly used to formulate trans-free fats such as margarine, shortening and vegetable ghee.
Under India-Malaysia free trade agreement, the current preferential tariff on crude palm oil is 40 per cent while on refined palm oil is 45 per cent. Imports from Malaysia increased from 6,26,362 MT in 2016-17 to 25,96,225 MT in Jan-June, 2019 (on annualised basis), showing an increase of 31%4. However, Imports from other countries declined from 23,15,292 MT in 2016-17 to 7,25,210 MT in Jan-June, 2019 (on annualized basis).
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