JAKARTA – The price of crude palm oil (CPO) futures for August 2025 rose by 2.55% to MYR 3,997 per metric tonne during Tuesday’s (3/6) trading on the Malaysia Exchange.

The price surge followed India’s decision late last week to cut its basic import duty on crude vegetable oil from 20% to 10%.

This reduced India’s effective import tariff to 16.5%, down from 27.5%. The effective rate includes additional levies paid by Indian importers.

According to analysts at Stockbit Sekuritas Digital, India’s previously high import tariffs had weighed on global CPO demand, which hit a 14-year low earlier this year.

However, the recent tariff cut and rising prices, Stockbit analysts wrote in a research note, will “offer a positive sentiment for related issuers.”

Several listed CPO producers are seen as attractive, including PT Triputra Agro Persada Tbk (TAPG), PT PP London Sumatera Indonesia Tbk (LSIP), and PT Dharma Satya Nusantara Tbk (DSNG).

According to IDNFinancials.com, TAPG shares rose 1.64% to IDR 930 per share on Tuesday, but remained flat during the first session today after hitting a high of IDR 945.

LSIP shares also gained 1.61% to IDR 1,260 per share on Tuesday but fell 0.79% in the first session today.

Meanwhile, DSNG shares jumped 3.80% to IDR 820 per share on Tuesday, but slipped 1.83% in the first session today. (KR/ZH)