October 17, 2003
India Raised Base Import Price of Crude Soybean Oil, Palm Oil
India, the world's largest edible oil importer, announced today the raise of base import price of crude soybean oil and palm oils which traders said would firm up domestic oil prices.
A government statement said the base import price of crude palm oil has been raised from $390 to $430 per ton.
The base price of RBD palm oil has been raised to $451 a ton from $426 and that of RBD palmolein to $464 a ton from $434. The base import price of crude soybean oil has been increased to $591 a ton from $537.
A Finance Ministry official said the base price of a new category of other palm oils would be fixed at $438 per ton.
"This will make the market bullish and the prices of soybean oil and palmolein may increase by around Rs 700-800 a ton and domestic oils prices should go up by Rs 400-500 a ton," said GG Patel, a leading vegetable oils trader.
Traders pay duties on imports, whose value is calculated using these base prices and not the actual prices at which they purchase oils. India fixes base prices to check the loss of revenue due to under invoicing by some importers.