Date:15/07/2006 URL: http://www.thehindubusinessline.com/2006/07/15/stories/2006071502071000.htm

Back Vegoil tariff values hiked

M.R. Subramani

Sharp increase in crude soya oil rate

Chennai , July 14

The Centre on Friday effected one of the sharpest hike in the tariff value of crude soyabean oil, while increasing the value for the palm group of oils by $4 to $16 a tonne.

The tariff value for crude soyabean oil has been increased by $37 (Rs 1,715) a tonne, which could perhaps be the highest hike effected since the Union Government began fixing the tariff value on August 3, 2001. The tariff value is taken up as the base value by the Customs Authorities to calculate import duties for various edible oils.

For crude soyabean oil, the tariff value is 45 per cent, while for crude palm oil it is 80 per cent and for refined oils 90 per cent. Besides, the imports also attract a countervailing duty of four per cent. With the current hike, the tariff value for soyabean oil is $566 a tonne.

According to Kotak CSL Research, the increase will lead to the landed cost of crude soyabean oil costing $843.13 a tonne (Rs 39,130).

"The value adjustment in crude soyabean oil will be Rs 8.06 per 10 kg," it said.

In the case of crude palm oil, the tariff has been hiked to $4 to $432 and its landed cost now will be $824.21 (Rs 38,250) a tonne. Again among the palm group of oils, the hike has been sharp in the case of RBD palm oil at $16 to $459. (See table).

In the case of crude palm oil, the value adjustment will be Rs 1.58 for 10 kg and Rs 4.44 for RBD palm oil.

According to Kotak CSL Research, crude soyabean oil prices could tend to rise in view of the current tariff hike and prevailing confusion of import of oil from genetically-modified soyabean.

In Kuala Lumpur, crude palm oil increased mainly on record crude prices with benchmark September quoting at $408 a tonne. RBD palm oil for immediate delivery was up $2.50 at $427.50, while RBD palmolein rose by the same margin to $432.50.

In the Mumbai oil and oilseeds market, refined soyabean oil increased Rs 50 a quintal to Rs 4,250, while RBD palmolein was up Rs 3 for 10 kg to Rs 416.

June Imports up 37%

Meanwhile, the Solvent Extractors Association of India released a data showing import of vegetable oils rising by 37 per cent in June. However, for the oil year to October, imports are down by 15 per cent.

According to the association, imports during June were 3.88 lakh tonnes compared with 2.82 lakh tonnes.

Oilmeal exports rise

On the other hand, oilmeal exports from the country continue to rise. During April-June, oilmeal exports were 8.75 lakh tonnes compared with 7.18 lakh tonnes a year ago.