You are here: Home » Markets » News
Business Standard

Indonesia keen to buy sugar from India; seeks duty cut on refined palm oil

An Indian delegation is scheduled to visit Indonesia this week to negotiate trade between the two nations for these two commodities

Press Trust of India  |  New Delhi 

Sugar

is interested in buying sugar from India but wants latter to cut import duty on and the sweetener substantially to 45 per cent and 5 per cent, respectively, according to sources.

An Indian delegation is scheduled to visit this week to negotiate trade between the two nations for these two commodities.

While India is the world's largest sugar producer with huge quantity of exportable surplus, is a major producer of edible oils, particularly palm.

According to sources, India is in talks with various countries including China and Indonesia to export surplus sugar and help mills clear cane arrears to farmers.

The Indonesian government is believed to have communicated that it was "not averse" to a bilateral arrangement with India on palm oil and sugar but it would take a long time to bring changes to the existing law for facilitating trade, the sources said.


Instead, Indonesia has suggested a trading arrangement under the (FTA) so that import duty on and sugar is harmonised to 45 per cent and 5 per cent, respectively, to facilitate trade, the sources added.

Indonesia has argued that the (CECA) between India and Malaysia will come into effect from January next year that provides for a preferential import duty of 45 per cent on refined oil as opposed to
50 per cent duty under the India-ASEAN FTA.

At present, India levies import duty of 54 per cent on refined palm oil, 44 per cent on crude palm oil and 100 per cent on sugar.

First Published: Tue, November 20 2018. 00:11 IST
RECOMMENDED FOR YOU