The Hindu Business Line : Refined soyabean oil imports spurt on low global prices

INDIAN importers used to contracting for crude de-gummed soyabean oil are now shifting to refined soyabean oil following a fall in international prices.

For 2004-05, world soyabean production is expected to reach a new high of 230 million tonnes (mt) against 188 mt in the previous year.

However, fall in prices is not the only reason. The tariff value fixed by the Government for crude soyabean oil (price at which valuation is made for purpose of charging customs duty, irrespective of invoice price) is above the market price, traders said. No tariff value for refined soyabean oil has been specified.

This has led to an anomalous situation. At times, invoice price of refined soyabean oil is lower than even the tariff value fixed for crude soyabean oil, making assessment more cumbersome and confusing.

"We have demanded that tariff value be fixed for refined soyabean oil also," Mr Jayant Lapsia, President of All-India Liquid Bulk Import Export Association, told Business Line adding that with downward trend in international prices and with no matching revision in existing tariff value, many importers have switched to refined soyaoil.

Tariff value for crude soyabean oil was last revised on September 15 and was fixed at $ 565 per tonne. It was only last week, the Finance Minister, Mr P. Chidambaram, stated in the Lok Sabha that the tariff value was in line with international prices of various oils.

The criterion adopted for changes in tariff value is that whenever there is a deviation of more than 10 per cent of the fixed tariff value, necessary changes are effected.

Between November 2003 and October 2004, India imported 15,300 tonnes of refined soyabean oil. However, in November this year, imports were 7,500 tonnes. The prospect for arrival of modest volumes of refined soyaoil over the next two months is said to be good.

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