NEW DELHI, Feb 18 (Bernama) -- Malaysia aims to secure parity in importduty imposed by India between that of crude palm oil (CPO) and soybeanoil.The parity could be achieved by reducing duty on CPO. India's duty on CPOand soybean oil are 65 percent and 45 percent, respectively.

The World Trade Organisation limits duty on soybean oil at 45 percent.

Datuk Seri Dr Lim Keng Yaik, minister of Primary Industries met SharadYadav India's Minister of Consumer Affairs, Food and Public DistributionTuesday.

Industry sources confirmed that Dr Lim did raise the issue of duty paritywith the Indian minister who had not responded to the suggestion.

In an official release today, Dr Lim had pointed out to Yadav at themeeting on the possibility of high demand and tightening supply ofMalaysian palm oil.

There was considerable rise in demand for crude palm oil from Europe,Thailand, China and Egypt apart from India, he added.

Dr Lim said that the Malaysian government was considering to adoptmechanisms to subsidise the price of crude palm oil for the State ofGujarat.

However, the subsidy on crude palm oil would be for Gujarat alone as thecountry is not able to do it for the whole of India, he added.

He would be meeting the Gujarat Chief Minister to discuss the issue duringhis current visit to India.

Dr Lim is also scheduled to meet Arun Jaitley, India's minister ofCommerce and Industry Wednesday.

Dr Lim said Malaysia was not able to supply crude palm oil to India dutyfree to processors in India as this would affect palm oil mills(refineries).

India imported 4.21 million metric tonnes of edible oils in 2001-2002 asits edible oil demand exceeds production.

India's edible oil demand is at 10.3 million metric tonnes and productionat 6.1 million metric tonnes.

Malaysia produces 11.9 million metric tonnes of palm oil last year againstthe total world production of 24.8 million tonnes.-- BERNAMA