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Commodities

Malaysian palm oil shares rise on India's import tax cut

Analysts expect tax move to boost Malaysian exports, support palm oil prices

The duty on refined palm olein was reduced to 45% from 50%, while the levy on crude palm oil import was cut to 37.5% from 45% under bilateral agreements between Malaysia and India.   © Reuters

KUALA LUMPUR (Nikkei Markets) -- India's recent move to cut import tax on Southeast Asian palm oil helped buoy plantation stocks in Malaysia, brightening the outlook for a sector that is enjoying a sharp rise in prices tracking tighter supplies.

The lower duty rate imposed by the world's biggest buyer of vegetable oil helped to narrow the price gap between palm oil and other competing oils such as soybean and sunflower, raising the appeal of the edible oil exported from Malaysia and Indonesia, analysts said.

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