February 4, 2005

India's soybean oil import base price unchanged

India's government has decided not to cut the base price on which import duty is levied on soybean oils, despite a decline in their international prices. It ahs notified that the base prices for soyoil have been left unchanged.

In India, government fixes the base price or tariff value on which import duty is levied for crude soybean oils. These prices are increased or decreased when there is at least a 10per cent change in global prices.

The base prices were last cut on September 15 after a significant decline in international prices. Since then, global soy and palm oil prices have further declined by more than 10 percent and the industry had been expecting a proportional cut in the base prices.

However, in the fresh notification issued by the Central Board of Excise Customs, these base prices have been left unchanged.

The concept of fixing base prices for levying import duty on edible oils was introduced in August 2001 to prevent under-invoicing by importers.