Curbs on Palm oil imports tightened

On April 13, 2020, India tightened its curbs on imports of palm oil. Under the new conditions, the authorisation for imports of palm oil should be accompanied with pre-purchase agreement.

Highlights

Apart from the pre-purchase agreement, “certificate of origin” has also been made mandatory. This certificate is important to prove where the goods come from. The import licensing of palm oil has been made to 6 months in place of 18 months.

The rules of origin certificate is required for countries with which India has trade agreements. These curbs are being introduced to regulate shipments during lock down.

India’s Imports

India is the world’s largest importer of vegetable oil and buys around 15 million tonnes annually. India primarily imports palm oil from Indonesia and Malaysia. Malaysia produces 19 million tonnes of palm oil a year and Indonesia produce 43 million tonnes of palm oil a year.

The Palm oil had been put to restricted category from Free since the remarks of Malaysian prime minister.

Month: Current Affairs - April, 2020