Edible Oils : Oilseeds Production Woes

The government has revised the tariff values for import of palm oil, in line with the decline in international prices. The revised base import prices for crude palm oil ($286/ton), RBD palm oil ($295/ton), RBD palmolein ($307/ton) and crude palmolein ($298/ton) represent a 15-18 per cent reduction from the tariff values fixed, for the first time, in August. Import duty on palm oil products will be assessed now on the basis of these floor prices, even if the stated contracted price is lower; however, if the actual purchase price is higher, the duty will be calculated accordingly. Following the announcement of the cut in tariff values, palm oil prices in Malaysia, the biggest producer, rose in expectation of higher import by India. Domestic edible oil prices, on the other hand, have declined on the eve of the new oil season.