Import duties in palm and soya oil likely to rise in '09
Import duties on palm and soya oil are expected to rise in 2008-09, a top industry official said. "The scale of imports during 2008-09 will depend on the level of import duties.
By PTI |
MUMBAI: Import duties on palm and soya oil are expected to rise in 2008-09, a top industry official said. "The scale of imports during 2008-09 will depend on the level of import duties. The Government is expected to keep revising import duty levels as the year develops and various factors emerge," Godrej International Ltd London Director Dorab Mistry said while presenting a paper on 'Palm Oil Price Outlook 2009' at the Indonesian Palm Oil Conference 2008.
"On balance, I expect import duties to rise as the plight of Indian farmers rises and can no longer be ignored by India's politicians who will soon be focussing on their own re-election prospects," Mistry said. The Indian Government surprised everyone by levying a 20 per cent import duty on crude degummed soya oil whilst leaving all other oils unchanged, he said.
It means that crude palm oil (CPO) continues to enjoy duty-free status, while refined soya oil is taxed at 7.5 per cent, much lower than the tax on crude soya oil, he added.
The higher import duty on soya oil has generally had a tonic effect on all vegetable oil prices in India, he said. However, soybean prices are still too low and farmers are extremely angry. Like their counter-parts in Argentina, Indian soya farmers are not selling and preferring to wait, Mistry said.
"On balance, I expect import duties to rise as the plight of Indian farmers rises and can no longer be ignored by India's politicians who will soon be focussing on their own re-election prospects," Mistry said. The Indian Government surprised everyone by levying a 20 per cent import duty on crude degummed soya oil whilst leaving all other oils unchanged, he said.
It means that crude palm oil (CPO) continues to enjoy duty-free status, while refined soya oil is taxed at 7.5 per cent, much lower than the tax on crude soya oil, he added.
The higher import duty on soya oil has generally had a tonic effect on all vegetable oil prices in India, he said. However, soybean prices are still too low and farmers are extremely angry. Like their counter-parts in Argentina, Indian soya farmers are not selling and preferring to wait, Mistry said.
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