Imported vegoils firm up on fears of tariff value revision

Aarti Shetty

Mumbai, Nov 5: Prices of imported vegoils have begun rising since the past couple of days on fears of yet another revision in tariff values. Just a fortnight ago, the tariff values for palm oils were slashed by around $50-65 per tn.

The revision of tariff values once again, coupled with the current festival demand for vegoils, has seen prices of various vegoils rise since the past few days.

Currently, RBD palmolein is being quoted at Rs 280 per 10 kgs and CPO is costing around Rs 245 per 10 kgs. In contrast, last Tuesday, CPO was quoted at Rs 235 per 10 kgs and RBD palmolein was costing Rs 270 per 10 kgs, before the import duty cut on October 30.

In the Malaysian market, prices of palm oils have moved up by nearly $20-23 in the last one week. RBD palmolein is being currently quoted at $290 per tn FOB and CPO is being quoted at $257.5 per tn FOB, as against last Tuesday’s quote of $267 per tn and $237 per tn respectively.

The tariff revision is seen benefiting palmoil producers and exporters from Malaysia and Indonesia. The percentage by which the tariff values will be slashed is anybodys guess, but importers estimate a $ 10-20 cut in the prevalent tariff values. After last month’s tariff
revision, the government last week lowered the import duty on crude palm oil (CPO) to 65 per cent from the earlier 75 per cent. Traders and importers said that the move is expected to drastically hit soyabean oil imports to India and also lead to soyabean oil prices take a beating in the near future. However, international and domestic prices of soyabean oil have been witnessing a rise in the last couple of days.

Soyabean oil is currently being quoted at Rs 262 per 10 kgs as against Rs 247 per 10 kgs on October 30. Prices have gone up even in the international market to $378 per tn CNF from $355 per tn CNF on October 30. A soyabean oil importer said, “Soyabean oil prices began to increase as there has been a sudden demand for soyabean oil from unexpected destinations”.