What the Budget has in store for the commodity markets

Updated: Mar 1 2006, 05:30am hrs
Measures

The customs duty on vanaspati to be increased to 80%

In-principle agreement to replace income-tax with a presumptive tax and also to set up an expert committee for the gem & jewellery sector

Condensed milk, ice cream, preparation of meat, fish and poultry, pectins, pasta and yeast fully exempted from excise duties. Excise duty on packaged foods and instant food mixes to be reduced from 16% to 8%

A Jute Technology Mission will be launched in 2006-07 and a National Jute Board will be established

Cut in import duty on non-ferrous metals such as aluminum and copper to 7.5% from 10%

Implications

The move will shield domestic refiners from cheaper imports and bring solid fat imports on par with palm oil

It will help India transform into international gems and jewellery trading hub besides giving a boost to exports and increase foreign direct investment

Packaged food will become more cost effective and will have better packaging that would increase shelf life and maintain freshness

Jute sector will revive the way textile industry has in last few years

It will keep domestic producers from raising prices and will reduce costs for makers of auto parts and construction companies