The Hindu Business Line : Base import prices of palm, soya oil hiked

THE Union Government has raised the tariff value for imported edible oils by $13-23 per tonne with effect from March 31 for the second time in a month in line with global rates.

The tariff value of crude palm oil has been increased to $423 a tonne from $400. The tariff value of RBD palm oil has been also raised to $429 a tonne from $415. The tariff value of RBD palmolein has been revised upward by $13 at $438 per tonne.

The tariff value of crude soyabean oil has been raised to $558 a tonne from $535 a tonne.

Earlier, the Ministry raised the tariff value for crude soyabean oil to $535 from $485 per tonne on March 14. Tariff value for other imported oils such as crude palm oil was unchanged.

Base prices are fixed to calculate customs duties to prevent the loss of revenue due to under-invoicing by some importers. Traders pay import duties on base values irrespective of the prices they paid for the oil.

The Solvent Extractors' Association (SEA) has complimented the Government for immediately taking the step to revise the tariff value upward to support the domestic price of edible oils and thereby safeguarding the interest of farmers.

At 1100 GMT, April soya oil at the Multi Commodity Exchange was up 0.48 per cent at Rs 397.50 per 10 kg. April contract at the National Commodity and Derivatives Exchange was up 0.49 per cent at Rs 397.50 per 10 kg. Industry officials said higher base prices would help oilseed farmers get a better price for their crop.

In the international market, however, the news about base price hike of palm oil, had minimal impact as players figured out the net disadvantage was only about $8 a tonne - versus a $100 discount already seen against rival crude soya oil.

Malaysian crude palm oil futures, up nearly 1 per cent by midday, closed off their highs after news of the base price change, although dealers said the consolidation had more to do with profit-taking than panic selling.

Malaysia's benchmark third-month crude palm oil, June, closed up about half per cent, or 8 ringgit, at 1,463 ringgit ($384.47) a tonne.

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