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News Admin
 
Date
 08/08/2001
News Provider
 Mahamad Rodzi Abdul Ghani
News Source
 NULL
Headline
 INDIA'S PALM OIL PRICES RISE ON GOVERNMENT ORDER

NEW DELHI, Aug 7 (Reuters) - Indian edible oil prices rose on Tuesdayafter the government decided to fix a base price on palm oil imports toprevent underinvoicing, traders said.India on Monday fixed the base import price of crude palm oil at $337 atonne, RBD palm olein at $372 a tonne and RBD palm oil at $351 a tonne.The government did not specify whether the base prices were C&F or FOB,but traders said they would be C&F rates."Domestic prices have corrected and changed in line with internationalprices," Rajnikant Rai, vice president (exports) of ITC Ltd, told Reuters.The prices of RBD palm olein in the domestic market rose to around 350rupees ($7.43) per 10 kg on Tuesday from 325 rupees last week.Earlier vegetable oil prices in India, the world's largest buyer, werequoted lower than the global rates as some importers were underinvoicingimports, traders said.Dealers said firmer prices were expected to continue till the rateswere at a par with international levels."We are still below the global level and in the next 15 days or so themarket will move to reach that level," said Sandeep Bajoria, president ofthe Solvent Extractors Association of India (SEAI).Traders said the price of RBD palm oelin would be close to 365 to 370rupees for a 10 kg pack after adding import tariffs.Palm olein currently carries an effective import duty of 92.4 percentwhile CPO has a 75 percent duty. Soybean oil has a lower customs levy of45 percent because of World Trade Organisation (WTO) regulations.In the first eight months of the year to October 2001, India's edibleoils imports rose to 2.97 million tonnes from 2.58 million in the year-agoperiod.On Tuesday, Malaysia's benchmark third-month October crude palm oil(CPO) futures contract broke the 1,300 ringgit ($342.11) per tonneresistance level and rose to a high of 1,308 ringgit, its highest levelsince October 11, 1999.Industry sources say slower palm output growth in Malaysia in thesecond half of 2001 and falling end-month stocks will help fuel prices.($1 = 47.10 rupees)($1 = 3.8 ringgit)


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