Malaysian palm oil futures hit 2-week low after Centre raises import tax

Industry players expect the tax hike on refined palm oil to cause Indian buyers to switch to importing crude palm oil

Malaysian palm oil futures closed slightly lower on Thursday, having hit their weakest level in two weeks after top edible oil importer India raised the tax on refined palm oil from Malaysia to 50 per cent from 45 per cent for six months.

The benchmark palm oil contract for November delivery on the Bursa Malaysia Derivatives Excha­n­ge was down 0.2 per cent at 2,182 ri­n­ggit per tonne at the close of trade. It earlier fell as much as 1.1 per cent to 2,163 ringgit, its lowest since August 21.

Palm oil may test support at 2,161 ringgit per tonne, a break below