March 16, 2007

 

India keeps palm, soyoil base import prices unchanged

 

 

India has again kept the base import prices of palm oil and crude soyoil at existing levels, a government statement said Thursday (Mar 15).

 

The base import prices for palm oils have been left unchanged for close to eight months now, but a formal notification informing about the status-quo is issued once every two weeks.

 

The base import price of crude palm oil is currently at US$447 a tonne and for crude soyoil it is US$580/tonne.

 

India is currently importing crude palm oil at around US$600/tonne and crude soyoil at US$678/tonne, cost and freight.

 

Import duties are calculated from base import prices regardless of the actual price at which importers buy the commodity.

 

Since the import duties are currently being calculated upon base import prices that are around US$100-155/tonne lower than actual import prices, it has led to a significant indirect decline in duty.

 

The base import prices haven't been raised in line with international prices in order to keep a check on inflation.

 

For refined, bleached and deodourised palm oil, the base import price is currently US$476/tonne.

 

India's crude palm olein base import price is at US$481/tonne and the base import price of RBD palm olein at US$484/tonne.

 

The last change in base import prices of palm oils was a hike of US$28-34/tonne on Aug 14, 2006, but the government withdrew the decision on the same day to prevent a rise in local prices.

 

The last change for the base import price of soyoil was a hike of US$1/tonne to US$580/tonne on Sep 15, 2006.

 

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