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India may review palm oil duties, says PM

Prime Minister Atal Bihari Vajpayee, on a three-day visit to Malaysia, said on Tuesday that India would review import duties on crude palm oil.

"Guided by the considerations of strengthening solidarity with our ASEAN friends, we have now decided to review the import duty on palm crude," Vajpayee said in a speech to a business conference.

Malaysia and Indonesia, the world's largest and second largest palm oil producers respectively, are both members of the 10-country Association of South East Asian Nations.

"We shall do so in a way which would safeguard the interests of our farmers and yet facilitate import of Malaysia's palm crude for our under-utilised refineries," he said.

Vajpayee added India's high taxes on oil were entirely due to its World Trade Organisation obligations.

"Just as Malaysia has to protect its Malaysian palm oil plantations over falling prices, we have to take care of the interests of our farmers who have experienced similar difficulties," he added.

In February, India slapped its heaviest-ever import duty of 75 per cent on crude palm oil and 85 per cent on refined palm oil. But it kept its duty on soyoil, palm oil's main competitor, at 45 per cent due to WTO commitments.

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