Malaysia Can Cut Palm Oil Export Tax, Know How Can It Affect India

Malaysia is considering cutting its export tax on palm oil and slowing down the implementation of its biodiesel mandate to help meet global demand amid a shortage of edible oil. making plans. Malaysia's goods minister informed the news agency Reuters on Tuesday.

Plantation Industries and Commodities Minister Zuraida Kamaruddin said in an interview with news agency Reuters on Tuesday that her ministry has proposed the cut to the Finance Ministry. Zuraida says Malaysia could cut taxes, possibly a temporary measure.

Malaysia is the second largest producer of palm oil in the world. At present there is an 8 per cent export tax in Malaysia, which can be done between 4 per cent and 6 per cent. According to Zuraida, a decision can be taken on this in early June.

Zuraida said, "During this time of crisis, maybe we can give some relief so that more palm oil can be exported. We have to prioritise giving food to the world first."

Palm oil is used in everything from cakes to detergents. It accounts for nearly 60 per cent of global vegetable oil shipments and the market has been shaken by top producer Indonesia's ban on its exports.

If Malaysia cuts the export tax of palm oil, then every buying country will benefit from it. Actually, its benefit will be seen by every Indian in the form of reduced prices.