Thai Enquirer’s Post

Philippine tax cut opens up new opportunities for Vietnamese rice exports The reduction of the rice import tax by the Philippines will create more advantages and increase opportunities for Vietnamese rice to enter the market later this year, insiders said. The Philippines, one of the world's largest rice buyers and biggest importers of the Vietnamese grain, has officially announced a reduction in rice import taxes from 35% to 15%, effective from early August this year and lasting until 2028. This can be seen as the latest action by the Philippine government to tackle inflation, especially the increase in rice prices in the market so far this year. In the first quarter of 2024, the Philippines’ economy was relatively stable, except for the price increase of some essential consumer goods, particularly rice, which saw an increase of about 24.4%. The rice prices account for approximately 9% of the Consumer Price Index (CPI) of the Southeast Asian country. According to the Vietnam Trade Office in the Philippines, the country is Vietnam's largest buyer to date, accounting for over 80% of the total rice imported into the Philippine market. Vietnam exported 1.44 million tonnes of rice to the Philippines as of May 23, accounting for 72.9% of the total import of the grain of the country. Sources: Vnexpress

Philippine tax cut opens up new opportunities for Vietnamese rice exports The reduction of the rice import tax by the Philippines will create more advantages and increase opportunities for Vietnamese rice to enter the market later this year, insiders said. The Philippines, one of the world's largest rice buyers and biggest importers of the Vietnamese grain, has officially announced a reduction in rice import taxes from 35% to 15%, effective from early August this year and lasting until 2028. This can be seen as the latest action by the Philippine government to tackle inflation, especially the increase in rice prices in the market so far this year. In the first quarter of 2024, the Philippines’ economy was relatively stable, except for the price increase of some essential consumer goods, particularly rice, which saw an increase of about 24.4%. The rice prices account for approximately 9% of the Consumer Price Index (CPI) of the Southeast Asian country. According to the Vietnam Trade Office in the Philippines, the country is Vietnam's largest buyer to date, accounting for over 80% of the total rice imported into the Philippine market. Vietnam exported 1.44 million tonnes of rice to the Philippines as of May 23, accounting for 72.9% of the total import of the grain of the country. Sources: Vnexpress

Philippine tax cut opens up new opportunities for Vietnamese rice exports The reduction of the rice import tax by the Philippines will create more advantages and increase opportunities for Vietnamese rice to enter the market later this year, insiders said. The Philippines, one of the world's largest rice buyers and biggest importers of the Vietnamese grain, has officially announced a reduction in rice import taxes from 35% to 15%, effective from early August this year and lasting until 2028. This can be seen as the latest action by the Philippine government to tackle inflation, especially the increase in rice prices in the market so far this year. In the first quarter of 2024, the Philippines’ economy was relatively stable, except for the price increase of some essential consumer goods, particularly rice, which saw an increase of about 24.4%. The rice prices account for approximately 9% of the Consumer Price Index (CPI) of the Southeast Asian country. According to the Vietnam Trade Office in the Philippines, the country is Vietnam's largest buyer to date, accounting for over 80% of the total rice imported into the Philippine market. Vietnam exported 1.44 million tonnes of rice to the Philippines as of May 23, accounting for 72.9% of the total import of the grain of the country. Sources: Vnexpress

It may end up being a tepid last quarter for Malaysia's palm oil exports, as it faces downwards price and demand pressures following Indonesia's decision to slash its output levy and India's sudden move to raise import tax by 20 per cent ahead of crucial elections in two states. Analysts say the twin tax moves could crimp demand for Malaysia's palm oil and palm oil products, as Malaysian crude palm oil (CPO) trades at sustained high prices due in part to a projected slowdown in output by Indonesia, the world's largest palm producer. Indonesia last week revised its levy on palm oil output to a percentage of the commodity's average monthly price in a bid to boost its competitiveness against palm oil sold by rivals Malaysia. India, the world's largest consumer of vegetable oils, hiked import taxes on all imported crude and refined vegetable oils to support farmers who form a crucial bloc in the coming state elections. Malaysia’s palm oil and palm oil-based exports totalled over US$21 billion in 2023, or nearly 3 per cent of Malaysia’s gross domestic product, according to government data. https://lnkd.in/gYuYbNcd

Indonesia, the world's biggest palm oil exporter, plans to lower export levy rates of the tropical oil to improve competitiveness against rival vegetable oils and raise farmers' income, a government official said on Wednesday. Small farmers often complain that exporters offer them cheaper prices for their palm fruits to compensate for higher export taxes. Under current rules, Indonesia imposes a levy between US$55 to US$240 per metric ton for crude palm oil exports, depending on global palm oil prices, which is charged on top of a separate export tax. There are 17 brackets for the levy, with the lowest tax rate kicking in when palm oil price is below US$680 per ton, and the highest rate when the price is above US$1,430 per ton. The new levy rates will also have "simpler" price brackets, Dida said, without disclosing further details. https://lnkd.in/gYZYA3Yg

India to Raise Vegetable Oil Import Taxes to Protect Farmers India is considering increasing import taxes on vegetable oils to support domestic farmers facing declining oilseed prices. This move, likely to be announced soon, could reduce the demand for imported palm oil, soyoil, and sunflower oil. The proposal, driven by the need to stabilize the local market, aims to help farmers recover production costs amid falling prices. With India being the world's largest vegetable oil importer, the decision could have significant implications for global trade. Read more: https://ow.ly/RuqT50TbZrm #VegetableOils #IndiaAgriculture #PalmOil #SoyOil #SunflowerOil #FarmersSupport #ImportTaxes #GlobalTrade #Oilseeds #AgriculturePolicy

India's decision to raise the basic import tax on crude and refined edible oils by 20 percentage points reflects the government's effort to protect domestic farmers who are struggling due to falling oilseed prices. As the world's largest importer of edible oils, India’s move is likely to have significant implications for global markets and domestic prices. Key Impacts of the Tax Hike: Price Increase for Edible Oils: The increase in import duties will raise the cost of imported edible oils like palm oil, soyoil, and sunflower oil. As a result, prices for these oils are expected to rise in the Indian market. Reduced Demand and Imports: Higher prices could lead to a decrease in domestic demand, particularly for imported oils. This reduction in demand will likely decrease India’s imports of palm oil, soyoil, and sunflower oil from countries such as Indonesia, Malaysia, and Argentina. Global Market Response: In response to this announcement, the Chicago Board of Trade saw soyoil prices drop by more than 2%, signaling the global market's reaction to a potential reduction in India's edible oil imports. Support for Indian Farmers: The primary goal of this policy is to support Indian oilseed farmers, whose incomes have been under pressure due to lower domestic prices. By raising the cost of imports, the government aims to boost demand for locally produced oilseeds, offering farmers better price stability. Breakdown of New Import Duties: Crude Palm, Soyoil, and Sunflower Oil: The basic customs duty on these oils has been increased to 20%, bringing the total import duty to 27.5%, after including additional surcharges like the Agriculture Infrastructure and Development Cess and the Social Welfare Surcharge. Refined Palm, Soyoil, and Sunflower Oil: The duty on these refined products has risen to 35.75%, compared to the earlier 13.75%. This decision is part of India's broader strategy to balance the interests of domestic agriculture with the demands of its vast consumer base, as it tries to ensure both price stability and farmer welfare. If you want to get insights of the implications of such steps for the trade business as well as overall agriculture oil sector ecosystem from the industry experts and leaders then do join us at GrainsWorld 2024 at Dubai. 📅 Event Date: 27-29 November 2024 📍 Location: Hyatt Regency Deira, Dubai, UAE GrainsWorld 2024 is Organized by Indian Chamber of Food and Agriculture, supported by Ministry of Commerce and Industry, Government of India and International Grains Council, with Global Grains and Pulses Council, International Agriculture Consulting Group - IACG. and HnyB as partners. Don’t miss out on this incredible opportunity! Visit https://lnkd.in/gJc-mPjc and Register today and secure your spot at GrainsWorld 2024. If you're interested in partnering or showcasing your brand, please reach out to niraj@hnyb.in. Let’s grow the future of agriculture together!

Bangladesh: Slashing Sugar Import Duties to Combat Smuggling In a strategic move to curb the rampant smuggling of sugar, the Bangladesh Trade and Tariff Commission (BTTC) has proposed a significant reduction in import duties. This bold initiative aims to stabilize the domestic market and ensure fair competition for local producers. The BTTC's proposal comes at a critical time when the sugar industry is grappling with the dual challenges of smuggling and price volatility. By lowering import duties, the commission hopes to make legally imported sugar more competitive, thereby reducing the incentive for smugglers. This move is expected to have a ripple effect, stabilizing prices and ensuring a steady supply of sugar in the market. The proposal has garnered support from various stakeholders, including local sugar producers and consumers. Local producers, who have long been advocating for a level playing field, see this as a step in the right direction. Consumers, on the other hand, stand to benefit from more stable and potentially lower sugar prices. The BTTC's decision is part of a broader strategy to combat smuggling and promote fair trade practices. The commission has been actively working on various fronts to address the issue, including strengthening border controls and enhancing cooperation with neighboring countries. Interestingly, this is not the first time Bangladesh has taken such measures. In the past, similar reductions in import duties have been implemented for other commodities, with notable success in curbing smuggling and stabilizing markets. For instance, the reduction in import duties on onions in 2020 helped to stabilize prices and reduce smuggling significantly. Interesting Facts: - Bangladesh is one of the largest sugar-consuming countries in South Asia, with an annual consumption of over 1.5 million metric tons. - The sugar industry in Bangladesh employs thousands of people and contributes significantly to the country's GDP. - According to recent reports, smuggling accounts for a significant portion of the sugar market in Bangladesh, leading to substantial revenue losses for the government. This strategic move by the BTTC is a clear indication of Bangladesh's commitment to fostering a stable and competitive sugar market, benefiting both producers and consumers alike.

: The Ministry of Plantation and Commodities (KPK) is confident the increase in import tax implemented by India on the price of Malaysian palm oil is temporary. In a reply at the Dewan Rakyat sitting today, it said the increase was part of India's efforts to protect its domestic oil prices and support its domestic agricultural industry "However, based on past experience, these tariff changes are usually temporary and their impact on Malaysia's palm oil imports is only short term. As the world's largest importer of palm oil with a population of 1.45 billion, India will always need palm oil to meet the country's domestic needs," it said in reply to Datuk Seri Hamzah Zainudin (PN-Larut) who asked the KPK to state short, medium and long-term strategic measures to deal with the impact on the Malaysian palm oil industry following the 32 per cent increase in import tax by India and the cut in the export levy rate by Indonesia. According to the KPK, Malaysian palm oil remains relevant in India due to its widespread use as well as its advantages in terms of quality and sustainability, and previous experience shows that after the tariff changes, India continues to import palm oil to meet domestic demand. https://lnkd.in/gPGtsKAQ