Indonesia wants a permanent policy for import of palm oil from India
03-Jul-2025 12:59 PM
New Delhi. Indonesia, the world's largest producer and exporter of palm oil, wants a fixed or permanent policy to be made regarding the import of this important vegetable oil from India so that importers and exporters can get information about the real situation in advance.
The Indonesian ambassador to India has said that both countries have huge populations and both have huge markets which need to be exploited. Keeping in mind the issues of demand and supply side, both countries need to make a fixed and permanent policy.
According to the ambassador, openness is necessary to understand the policies and stock management of both countries.
If there is stability or certainty in the policies, then there will be no hindrance in the business of palm oil and uninterrupted import-export will continue.
The climate situation is constantly changing and there is a possibility of this problem persisting in the future as well. Naturally, this reality has to be understood that every country gives top priority to its interests and changes the policies accordingly.
The Government of India has also been implementing certain policies from time to time and the policies may change in future as well. A similar situation prevails in Indonesia as well.
Whenever the weather is bad and there is a possibility of reduced production, then the Indonesian government is forced to change the policies related to the export of palm oil.
In India, there is an import duty of 16.5 percent on crude palm oil and 35.75 percent on RBD palmolein. On the other hand, Indonesia is also giving priority to the export promotion of refined palm oil / palmolein instead of crude palm oil and hence keeps changing the duty.
A few years ago, it also temporarily banned the export of palm oil. From May 2025, the export duty on crude palm oil (CPO) in Indonesia has been increased from 7.5 percent to 10 percent. Earlier in April 2022, it had banned the export of palm oil, which was lifted after a few months.