Indonesia and India Trade Deal Expected to Boost Palm Oil Export
The Government of Indonesia and palm oil companies have come out with strategic actions to promote palm oil export to India.
The Government of Indonesia and palm oil companies have come out with strategic actions to promote palm oil export to India. At the Globoil India 2019, Indonesia held an exhibition to showcase palm oil products and a business forum that brought together government, industry and trade unions. A business forum held at Rennaisance Hotel, Mumbai, India, Wednesday (25/9/2019), convened business, government, and civil society to exchange ideas on possible export expansion and joint investment in making additional values from palm oil products.
The forum had various prominent speakers from the palm oil stakeholders in Indonesia and India, included Indonesian Ambassador in India Sidharto Suryodipuro, Chairman of Indonesian Palm Oil Association (Gapki) Joko Supriyono, President Solvent Extractors India Atul Chaturvedi, Chairman of the Supervisory Board of the Indonesia Oil Palm Plantations Fund Management Agency (BPDPKS) Rusman Heriawan, Vice Chairman of Indonesian Biofuel Producers Association (Aprobi) Hary Hanawi, and Secretary General of Gapki Kanya Lakshmi. Sidharto said that the business forum was deemed necessary to share information and build positive image of palm oil to the people of India. “In this forum we provide consumers with valuable information on palm oil as healthy edible oil,” Sidharto said. Meanwhile, Joko Supriyono felt optimistic about Indonesia’s chances of winning Indian market as the government of India has given same import tariff treatment with the one for Malaysia for palm oil and derivative products.
Previously, India had imposed a 50 percent import tariff on palm oil products coming from Indonesia, while Malaysia enjoyed a lower tariff of 45 percent as it has a Comprehensive Economic Cooperation Agreement (CECA) with the country. “I truly appreciate the government of India and my colleague B. V. Mehta (Executive Director of Solvent Extractors’ Association of India) for their decision on the import tariff. The decision will help Indonesia to boost export this year or within 2020,” Joko said. India is the largest palm oil market for Indonesia with an export share of about 20 percent, equivalent to 6.71 million tons last year.
Gapki is looking to reach export target by 7.6 million tons by 2020. “It is the same performance we reached in 2017 which is the highest export figure to India,” Joko added. The 22nd edition of Globoil India 2018 is an international conference on vegetable oil, feed, feed ingredients, oilseeds and oleo chemicals. It is one of the world’s largest congregations of the edible oil trade and allied industries. ***