Govt cuts tariff values for vegoils

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$6/t for palm group; $17 for soya

Our Bureau

Chennai, June 15

The Union Government on Thursday cut the tariff values for palm group of oils by $6 a tonne and that of de-gummed (crude) soyabean oil by $17. The cut in tariff values is the second in the month for palm group of oils and in line with the global trend. The value for soyabean oil has been cut after it had been hiked twice by $22 and $19 a tonne.

The tariff value is the base price on which the customs duty for various vegetable oils is worked out. While the effective duty on import of crude soyabean oil is 50.8 per cent, it is 88.8 per cent for palm oils.

With the current revision, crude palm oil tariff value is $424 a tonne, while that for crude soyabean oil is $542.

According to Kotak CSL Reseach, in view of the cut there will be a downward valuation adjustment of Rs 2.35 for 10 kg in case of crude palm oil, Rs 2.65 for 10 kg for RBD palm oil and Rs 3.68 for crude soyabean oil.

On Thursday, crude palm oil for August delivery was quoted at $397 a tonne, down from Wednesday on lower export figures and decline in the soya oil counter. RBD palm oil for the July-September quarter was quoted at $415 a tonne f.o.b. (free on board), and RBD palmolein at $420. In the domestic market, RBD palmolein and crude soyabean oil declined Rs 3 for 10 kg to Rs 397 and Rs 375 respectively.

(This article was published in the Business Line print edition dated June 16, 2006)
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