Malaysia maintains crude palm oil export tax for October
Malaysia, the world’s second largest palm oil exporter, has kept crude palm oil export tax for October at 8%, Malaysian Palm Oil Board (MPOB) announced in a notice published on its website on Monday.
The country set a reference price for palm oil exports at MYR4,472.46 per tonne in October, up from MYR4,255.52 in September.
Malaysia’s palm oil export tax rate starts as low as 3% if crude palm oil prices range between MYR2,250 and MYR2,400. The maximum tax rate of 8% is imposed when crude palm oil price exceed MYR3,450 a tonne.
India cuts import taxes
Malaysian palm oil futures recovered to around MYR4,400 per tonne in mid-September, amid prospects of rising demand after India cut base import taxes on palm oil, soyoil and sunflower oil, according to economic data provider Trading Economics reported. However, prices remain below a record high of MYR4,560 per tonne in August, due to growing supply from Indonesia and Malaysia, two world’s largest palm oil producer.
MPOB reported that Malaysian planters produced 1.7 million tonnes of crude palm oil in August, rising 11.8% from July. But the country’s palm oil exports dropped by 17% to 1.16 million tonnes from the previous month.
Indonesia’s crude palm oil output fell by 9.5% in July to 4.05 million tonnes, from 4.48 million tonnes in June, the Indonesian Palm Oil Association reported on 9 September. But palm oil production at the world’s biggest producer is expected to be on the upward trend, the association said.