January 15, 2008

Indonesia scraps 10 percent soy import tax to cool prices  
 

A 10 percent import duty on soy has been scrapped by the Indonesian government in a bid to quell soaring prices of the commodity, which have threatened to hurt the local food industry, said a senior government official on Monday (January 14, 2008).

"The import duty on soy will be scrapped for the moment. However, the government will continue to monitor global soy prices, and import duties on soy may be reinstated as and when prices of the commodity begin to show a downward trend," said Indonesia's Trade Minister Mari Pangestu after meeting her counterparts from the Agriculture and Finance ministries to discuss the cut.

Chicago Board of Trade soy futures ended sharply higher Friday, setting new contract highs. January soy settled 42 cents higher at US$12.86.

Indonesia imports close to 70 percent of its annual soy consumption of 2 million tonnes, mainly for the food industry which uses soy to make soy sauce and beancurd.