Breaking News-RTRS - ANALYSIS-India could burn fingers with aid to domestic palm refiners

KUALA LUMPUR/NEW DELHI, Oct 7 (Reuters) - India's plan to hike a domestic levy on refined palm oil, designed to protect its refiners from cheaper exports by top palm oil producer Indonesia, will backfire in the absence of rival suppliers to meet the appetite of the south Asian nation.
The world's top edible oil buyer could end up spending more on Indonesian crude palm oil , which has risen as high as $84 over benchmark Malaysian futures after Indonesia raised taxes on the crude in the middle of September.
At the same time, Indonesia halved taxes on refined palm oil so as to boost exports as part of its tax system that aims to encourage downstream industries, secure domestic supplies and reduce volatility in cooking oil prices.