Indonesia to prioritize imports of meat, rice, raw sugar from India in exchange for lower CPO tariff

Indonesia will prioritizes imports of buffalo meat, rice and raw sugar from India after the South Asian country adjusted crude palm oil (CPO) tariffs for its top two importers, Malaysia and Indonesia, earlier this month.

 

India has given us an opportunity to increase our CPO exports, it is only fair to give India access to our market as well,” Trade Minister Enggartiasto Lukita said during the India-Indonesia Multi Product Roadshow opening ceremony in Jakarta on Monday.

 

Previously, India had imposed a 50 percent import tariff on palm oil products coming from Indonesia, while Malaysia enjoyed a lower tariff of 45 percent as it has a Comprehensive Economic Cooperation Agreement (CECA) with the country.

 

India is the largest palm oil market for Indonesia with an export share of about 20 percent, equivalent to 6.71 million tons last year. The EU, China and Pakistan follow India with exports of 4.78 million, 4.41 million and 2.48 million tons, respectively.