2/15/05- The Indian government Tuesday cut the base prices for palm oiland palm olein, from which import taxes are calculated, but raised theirimport duties, the Ministry of Finance said in a statement.
India's import duties on palm oil and palm olein are calculated from thesebase prices, regardless of their actual import value. The governmentusually revises base prices if market prices fluctuate more than 10%.
In the latest decision, base prices were cut because global prices havefallen more than 10% since the last revision.
The government also raised the customs duty on refined palm oil to 90%from 75% and crude palm oil to 80% from 65%, a move market players saidwas aimed at protecting the domestic industry. While the change in thebase prices leads to a fall in actual import duties paid, the increase inimport duties negates much of that impact.