May 18, 2004

Indian Government May Cut Soyoil Tariff Value Soon

India's federal government may cut the tariff value of crude soyoil soon, said local news agency Press Trust of India, or PTI, quoting an unnamed senior official of the Central Board of Excise and Customs, or CBEC.
 
"We are conscious that soyoil prices have fallen by $70 a metric ton in the world market (over the past two months) but the cut in tariff values had been delayed by the national polls," said the official, adding the cut in base prices may not be put off for much longer.
 
India's federal government sets a tariff value for imported palm oils and soyoil, on which it calculates import duty. The government increases or decreases the tariff value from time to time depending on fluctuations in international prices of these oils.
 
India's national elections ended May 13 and a new government may be sworn in this week.
 
The cut in soyoil tariff values may reduce domestic prices of soyoil as imports will become cheaper, PTI said.
 
The current tariff value of soy oil is $710/ton. The current landed cost of imported soy oil at Indian ports is around $640/ton, cost, insurance and freight.
 
The tariff value of crude soyoil was last revised March 3.