Financial Daily from THE HINDU group of publications
Wednesday, Mar 15, 2006
Agri-Biz & Commodities - Oilseeds & Edible Oil
Industry & Economy - Excise and Customs
Palm group of oils tariff value cut $3 a tonne
Chennai , March 14
The Centre on Tuesday cut the tariff value for palm group of oils by a uniform $3 a tonne but raised it for crude soyabean oil by $13.
As per a notification issued by the Finance Ministry, crude palm oil's tariff has been lowered to $434, while that of RBD palmolein to $459. Similar cut has been effected to other palm group of oils. (See table).
In the case of crude soyabean oil, the tariff has been raised to $537 a tonne.
In tune with global rates
The revision in the values has been made in tune with the behaviour of the global prices during the last fortnight. The tariff value is the base price on which the Customs duty for various vegetable oils is worked out.
While the effective duty on import of crude soyabean oil is 50.8 per cent, it is 88.8 per cent in the case of palm oils.
Industry sources said the cut in palm group of oils was marginal and would, practically, have no effect on the market.
On the hike in soyabean oil tariff, they said it was crucial in the face of rabi mustard/rapeseed arrival on cards.
Imports of soyabean oil have turned cheaper in the last couple of months in view of lower customs duty and, therefore, the Centre had resorted to this step to curb shipments, the sources said.
Customs duty on crude soyabean oil is lower in view of India agreeing to bind its duty at 45 per cent as part of its commitment to the World Trade Organisation.
In the derivatives market in Malaysia, crude palm oil benchmark May futures closed lower at $387.45 a tonne, down over $1 from Monday.
In the spot market, crude palm oil for immediate delivery was quoted between $370 and $385. RBD palm oil was quoted at $394 and RBD palmolein at $400.50.
On Monday night, soyabean oil tumbled 45 cents to 23.71 a pound on Chicago Board of Trade.
In Mumbai, imported RBD palmolein closed Re 1 up at Rs 379 for 10 kg, while imported crude soya oil ended up similarly at Rs 354.
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