The government on January 8 imposed restrictions on imports of refined palm oil. According to a notification of the Directorate General of Foreign Trade (DGFT), "import policy" is amended from "free to restricted" for refined bleached deodorised palm oil and refined bleached deodorised palmolein.
Putting the commodity in restricted category means an importer will require licence for import.
India, the world's largest importer of vegetable oils, buys nearly 15 million tonne annually. Of this, palm oil comprises 9 million tonne and the rest 6 million tonne is soybean and sunflower oil.
Indonesia and Malaysia are the two countries which supply palm oil.
Malaysia produces 19 million tonne of palm oil in a year, while Indonesia produces 43 million tonne, the trade data showed.
Source: moneycontrol.com