NEW DELHI, May 16 (Bernama) -- The import of soyabean oil is likely tosurge following downward revision in the tariff value on edible oils,effected on Wednesday.
Soyabean oil has had the maximum decline of US$63 a tonne from US$600 atonne to US$537 a tonne - and it is estimated that about 150,000 tonnes ofsoyabean oil will arrive this month and a similar quantity next month,according to a Mumbai-datelined report in the financial daily, the HinduBusiness Line.
India imported 110,000 tonnes of soyabean oil in April, according toearlier reports.
As soyabean tariff value has been brought down by US$63 a tonne, soyabeanoil importers would stand to gain about US$28 a tonne, or over Rs.1,300 atonne (45 percent duty on US$63).
The impact on palm oil imports remain to be seen.
Tariff value on crude palm oil has been brought down by US$42 (from US$432to US$390), on RBD palm oil by US$34 (from US$460 to 426), on RBD palmolein by US$36 (from US$470 to US$434) and crude palm olein by US$39 (fromUS$454 to US$415).
Tariff value is the fixed base price at which import duty is levied onpalm oils and soya oils, which is determined by international rates andnot on price at which the deals are transacted.
This is to prevent under-invoicing by importers. Traders have beenreported as saying that the lowering of the tariff value will make importscheaper, but purchases will only be as per the demand and domesticproduction.
The paper quoted reports in Mumbai saying that Malaysian prices might firmup by US$10-20 a tonne.
However, in the local market, the report said palm olein rates dropped byRs.9 to Rs.381 (US$4) per 10 kg trading lot, while groundnut oil wassteady at Rs.552 per 10 kg.
For May, the projected edible oil arrivals are over 500,000 tonnes, ofwhich one-third will comprise of palm group of oils.
Oil year imports ending October 2003 are projected to breach the fivemillion tonnes mark and set a new record.