Financial Daily from THE HINDU group of publications
Thursday, Feb 16, 2006
Financial Daily from THE HINDU group of publications Thursday, Feb 16, 2006 |
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Government
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Agricultural Policy Industry & Economy - Excise and Customs Agri-Biz & Commodities - Oilseeds & Edible Oil $14-17/t hike in tariff values for veg oils Our Bureau
Chennai , Feb. 15 THE Union Government on Wednesday raised the tariff values or the base price at which the customs duty are calculated for vegetable oils. This comes after it cut the values thrice this year. While the values for the palm group of oil have been increased by $14 a tonne, for crude soyabean oil, the hike is $17. The hike is due to rise in prices in the global market. Prices have been rising on a positive outlook for edible oil prices this year. Funds entry in the futures market has also kept the prices steady. Even during the current hike, the Centre has maintained the difference in the base price between crude palm oil and RBD (refined bleached deodourised) palmolein at $25 a tonne. On January 3, when the values were reduced the difference between crude palm oil and RBD palmolein was $4, making import of the latter more attractive. As per Wednesday's notification, the tariff value for crude palm oil will be $426 a tonne, while for crude soyabean oil it will be $501. (See Table) On January 3, the tariff value for crude palm oil was cut by $19 a tonne, while for RBD palmolein, the cut was $8. On January 16, the value was cut by $2 for crude palm oil but it was raised by $19 to $440 for RBD palmolein. In Malaysia, crude palm oil gained on Wednesday on reports by a cargo surveyor that exports had increased 19.4 per cent during February 1-15. Prices for benchmark April futures on Bursa Malaysia Derivatives increased 0.5 per cent to $398.92 a tonne. The rates are now expected to top $400. RBD palm oil was quoted at $410 a tonne f.o.b, while RBD palmolein at $412.50. However, Chicago Board of trade soyabean oil contracts were quoted lower in electronic trade by 20 cents at 22.43 cents a pound. The hike in the tariff value comes at time when the market is expecting a good rabi oilseeds crop. Area under oilseeds has increased to 107 lakh hectares (lh) during the current season against 102.80 lh during the same period a year ago. The area is mainly up due to rise in coverage of rapesee/mustard. In the domestic market, RBD palmolein ruled steady at Rs 376 for 10 kg, while crude soyabean oil was up Rs at Rs 336 for 10 kg.
More Stories on : Agricultural Policy | Excise and Customs | Oilseeds & Edible Oil
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