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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

04/03/2005

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

Dow Jones

CATEGORY

HEADLINE

India Mills Upset Over Cut In Imported Soy Oil Bas
NEW DELHI (Dow Jones)--India's soy oil millers are upset about thefederal government cutting the base price on which the import duty of soyoil is calculated, a senior industry official said late Wednesday."The change in tariff value at this time when (a bumper) rapeseed cropis (being harvested) may send (the wrong) signal to oilseed farmers. Thismay motivate the farmer to shift from oilseeds to other competing crops,"saidRajesh Agrawala, chairman of the Soybean Processors Association of India,or SOPA.On Tuesday, India's federal government cut the base price on which theimport duty of soy oil is calculated to $485 a metric ton from $565/ton.Generally, the base price of imported edible oil is cut or hiked by thegovernment to keep the base price as close as possible to the prevailinginternational price of that edible oil.The current international soy oil price is around $550/ton-$560/ton, sothere is "no rationale in reducing" the base price, Agrawala said.The federal government doesn't provide explanations for cuts or hikes inthe base price of any imported edible oil.