In September 2000, the export tax rate was set at 5% in view of Malaysia’s decision to eliminate its CPO duty, and India’s decision, the major importer, to raise taxes on edible oil imports. It was further cut to 3% in March 2001 and to 1.5% in October 2005 as the international price of palm oil gradually decreased. As international palm oil prices began rising in 2007, producers were motivated to export more rather than to supply the domestic market causing the price of cooking oil on the domestic market to rise. Concerned with this, the government increased the export tax to 6.5% in July 2007.