Bisnis Indonesia, 17 January 2019
CPO price continues to weaken following the Indian government’s plan to impose 44% duty on CPO and 55% on CPO derivatives. This plan has raised market anxiety over potential decline in India’s CPO demand.
Sprint Exim Singapore Trader Rajesh Modi said that the market is anxious that India may reduce CPO demand and shift to soybean oil, which offers more attractive price.
India’s CPO import also declined to below expectation. Market players previously expected India’s CPO import to increase since the country had lowered its import duty in early 2019, Rajesh said.