The Chinese government has slashed import duty on coconut oil from 10% to 5%. The commodity was one of a number which saw their tariffs cut this week in a bid by the Chinese to rein in inflation.
China will also temporarily reduce import tariffs on other selected commodities. The import tariff on frozen pork will be cut to 6% from 12%, on soyameal and peanut meal for feedmeal will be reduced to 2% (from 5%) from June 1 to December 31 and on olive oil to 5% from 9% from June 1 to September 30. It will also cut the sliding tariff on imports of high quality cotton that exceed the import quota to 3%-40% from 5%- 40%, effective June 5 to October 5.
The move is likely to have an overall negative sentiment on agricultural commodities. The government has been sparing no efforts to curb inflation. China’s key inflation rate rose 8.5% in April from a year earlier, hovering near 12-year highs.
The import tariff cuts don’t include soya-oil as the market had expected, showing the government’s willingness to protect farmers’ interests as the purchase of newly-harvested rapeseed has just started.
Source: Commodity Online
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