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NEW DELHI, Aug. 4. (Soyatech via NewsEdge Corporation) In a bid to tacklerampant under-invoicing of prices by edible oil importers, the Governmenthas decided to fix 'tariff values' for assessing customs duty liability at$337 per tonne for crude palm oil, $351 per tonne for RBD palm oil and$372 per tonne for RBD palmolein. These rates, all of which correspond tofree-on-board (f.o.b.) levels (Malaysia), will be officially gazetted in aday or two, according to reliable sources.Fixation of the above tariff values, in effect, would mean that importerscannot declare an f.o.b. rate below these levels for the purpose ofpayment of customs duty.Adding an average freight cost of around $25 per tonne from Malaysia, thecost & freight value of the palm complex (on which the duty is imposed)would work out to roughly $360 per tonne for crude palm oil, $375 pertonne for RBD palm oil and $395 per tonne for RBD palmolein.The sources told Business Line that the tariff values have been determinedon the basis of the 'actual' international prices prevailing now.Currently, Malaysian futures contracts for August/September are trading at$338 per tonne for crude palm oil, $357.5 per tonne for RBD palm oil and$380 per tonne for RBD palmolein (all f.o.b).The decision to fix tariff values was taken in the context of the hugevolatility in international palm oil prices. Only a month ago, RBDpalmolein was being offered in Malaysia at $265 per tonne and crude palmoil at $225 per tonne.In other words, prices have soared by roughly $100 per tonne in hardly25-30 days. "In such a volatile scenario, the incentive forunder-invoicing is high and there is room for importers to cough up lowerduty by simply backdating their consignments," sources said.The increase in global palm oil prices is even more pronounced whencompared to the levels of February 2001, when these averaged a low of $188per tonne for crude palm oil and $204 per tonne for RBD palmolein.It is not clear whether the Government has determined similar tariffvalues for other oils too, particularly soyabean, sunflower andrapeseed-mustard (canola). But according to sources, there is no immediaterequirement to fix tariff values for these soft oils, considering thattheir imports are relatively less compared to the palm complex.During the current oil year from November 2000 to June 2001, the country'stotal edible oil imports amounted to 29.71 lakh tonnes (l.t.), of whichthe palm complex accounted for 20.62 l.t., i.e. over 69 per cent.Moreover, prices of soft oils have not firmed up to the extent as that ofpalm oil. The difference between the landed price of crude degummed soyaoil and crude palm oil has fallen from around $100 per tonne in Februaryto less than $70 per tonne now.The fixation of 'reasonable' tariff values may also give the Government anopportunity to reduce the basic customs duty on crude palm oil from theexisting 75 per cent, as per the 'commitment' given to Malaysia followingthe Prime Minister, Mr Atal Bihari Vajpayee's visit to that country inMay.A 75 per cent duty on crude palm oil at the proposed tariff value ofaround $360 per tonne (c&f) would translate into a domestic price ofnearly Rs 30 per kg.A 10 per cent duty reduction would bring this down to about Rs 28 per kg,which is not expected to cause any major problems for the domestic solventextraction industry, which has been vociferous in its complaints ofunder-invoicing by importers.

KUALA LUMPUR, Aug 7 (Reuters) - Slower palm oil output growth in Malaysiain the second half of 2001 and falling end-month stocks will help keepprices rising, industry sources said on Tuesday.Malaysia's crude palm futures have been climbing steadily since earlyJuly in anticipation of a slow down in local output in the coming months,replacement of ageing trees as well as rises in the Chicago market.On Tuesday, benchmark third-month October crude palm oil (CPO) futurescontract broke the 1,300 ringgit ($342.11) per tonne resistance level androse to a high of 1,308 ringgit, its highest level since October 11, 1999."Production has been very high in the past two to three years. So thisyear, production will be at a plateau," Emerson Liau Yong Hwa, chairman ofthe Incorporated Society of Planters, told Reuters by telephone.Liau said palm oil trees in the world's largest producer are entering acycle in which they will rejuvenate and produce less oil after a peak in2000.This year's second half output growth may slow to 15 percent, comparedto 35 percent in normal conditions.Slower growth is already evident in the eastern state of Sabah onBorneo, where July output is seen falling by 20 percent from June, saidLiau.Sabah, which accounts for around 37 percent of Malaysia's output, isthe country's largest palm oil growing area.

MALAYSIAN JULY PALM OIL FORECAST – IVAN WONG

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DALIAN, Aug 3 (Asia Pulse) - The commodities exchange of this coastal cityof northeast China's Liaoning Province has grown into a soybean futurescenter in Asia.Latest statistics show that the Dalian Commodity Exchange clinched a total754.8 billion yuan of trade volume over soybeans in the first half of thisyear, accounting for some three-fourths of the entire domestic soybeanfutures market.In terms of soybean trade, the Dalian Commodity Exchange has jumped to thetop in Asia by overrunning Japan's Tokyo Grain Exchange and ranked secondworldwide, next only to the Chicago Board of Trade (CBOT).According to experts, the Dalian soybean market price is gettingincreasingly authoritative and has even become an important frame ofreference for both domestic and international trading over soybeans.China's futures market, as a result of the country's reform and openingup, has a history of merely a decade and by doubling its regroupingefforts, there are currently three exchanges nationwide, located inDalian, Shanghai and Zhengzhou.Tian Yuan, president of the China Futures Association, believes that thesuccess of the Dalian Commodity Exchange marks also the success of China'smarket economy and financial reform.For the first time early this year, the Chinese central government clearlyput forward the idea of steadily develop the country's futures marketduring the 10th Five Year Plan period (2001-2005).The Chinese government is now taking advantage of the futures market todirect investment, push forward the reform in the grain market and adjustthe agricultural structure, said Tian.With China's entry into the WTO, its soybean market, due to its maturity,will not encounter big problems. However, he said, other grain species,like corn, will be forced into a very tough situation.China produces one-fifth of the world's corn, but its corn prices andtrading are still based on CBOT references.It is learned that relevant Chinese departments are now considering thelisting of corn trading on the futures exchange.Expert here predict that if Dalian Commodities Exchange opens new businesson other grain species like corn, it will soon grow into Asia's leadinggrain futures market and the World's second largest next only to CBOT.

04 August 2001,(Business Times) - AT least 25 per cent of the country'scrude palm oil production within four years is the minimum transactionfigure needed to run the Malaysian Electronic Exchange for Palm Oil(ePomex), the world's first electronic bourse for the trading of oil palmproducts.

PETALING JAYA, Aug 6 (Bernama) -- Malaysia will focus on getting newmarkets and adopting higher production technologies, as part of itsstrategy to boost palm oil exports, said chief executive of Malaysian PalmOil Promotion Council (MPOPC) Datuk Haron Siraj.

07 August 2001 (Business Times) - SUSTAINING the surge in interest amongpalm oil importers will be a challenge that the Malaysian Palm OilPromotion Council must continue to address for the long-term viability ofthe commodity, said council chief executive officer Datuk Haron Siraj.

06 August 2001, (Business Times) - PALM oil industry players have beeninvited to be co-owners of the world's first electronic exchange for thetrading of oil palm products initiated by Malaysia, the global number oneproducer of the commodity.

LAHORE, 8/6/2001 (Business Recorder) - Pakistan Vanaspati Manufacturer'sAssociation (PVMA) has called upon the government to reduce the importduty to 65 percent on palm oil, soyabean and other edible oils, used inthe manufacturing of ghee and cooking oils, claiming the rise in edibleoil prices in the international market is putting pressure on themanufacturers.A spokesman of the association said here on Thursday, that the currentprice trend is a result of phenomenal increase in the prices of edibleoils in the international market however, measures were necessary toalleviate the pains of the consumers for whom the prices of ghee andcooking oil are going beyond the purchasing power of people.Analysing the price rise trend in the international market, the spokesmanstated that from January to July 2001, the prices have gone up by 41 percent. The industry, being highly competitive, has been absorbing the pricehike of edible oil in the international market, but the pressure kept ongrowing compelling the industry to raise the prices of its products.The spokesman said that the prices of local oils are on the rise as injust six months it has gone up from Rs 35000 per tonne to Rs 44000 pertonne.He criticised the high share of government earnings in the ediblebusiness. The association stressed that in order to provide the consumerssome relief, the share sizes should be rationalised.

8/3/2001(Business Times) - Palm oil prices, which saw gains of RM30 atonne yesterday, may see the uptrend moderate in the near term as thecurrent level of between RM1,200 and RM1,300 may start to deter freshuptake by traditional buyers, dealers say."Players are closely monitoring developments in the US market. . . .especially the rival oils," a trader told Business Times in Kuala Lumpuryesterday.The fundamentals however remain intact, with demand from big buyers likeIndia providing support for the prices at the RM1,200 level, he said.India is expected to report a lower output of vegetable oils this year inlight of an extended drought in the subcontinent. And with demand seenrising in the months through to Deepavali in November, palm oil isexpected to enjoy brisk business.Traders said recent developments in Indonesia also augur well for thesector, especially the republic's plan to reduce exports of the commodityto meet domestic demand.Indonesia produces about 7 million tonnes of palm oil a year, of which 3million tonnes are exported. Only Malaysia produces more of the commodity,at over 10 million tonnes.At the sound of the bell yesterday, the spot crude palm oil (CPO) futurescontract on the Malaysia Derivatives Exchange (MDEX) shot up to RM1,275 atonne. But profit-taking surfaced later in the day to trim the gain andspot August closed at RM1,262 a tonne for a net gain of RM30, as didSeptember futures at RM1,265.October meanwhile put on RM32 to RM1,268, and November RM31 to RM1,271.Total volume was a heavy 3,463 lots compared to 2,685 lots on Tuesday,while open interest stood at 11,263 contracts, up from 10,905 contracts.In the physical market, August South CPO was traded at RM1,275 a tonnecompared to Tuesday's RM1,245.

HYDERABAD, 8/2/2001 (Financial Times Information Limited) - ProvincialSecretary for Forests, Wildlife and Environment, Shams-ul-Haq Memon, hassaid that a programme was on the anvil to set up a pilot project forcoconut and oil palm and added that in order to introduce this cash crop,a research project was being established in Thatta. He said for thispurpose, a laboratory would also be established.He added this during the inspection of coconut experimental farm on MirpurSakro road. A delegation of Pakistan Coconut and Oil Palm PlantationSociety (PCOPPS) also accompanied the secretary.He expressed satisfaction over the increase in the coconut production forwhich the Pakistan Agriculture Research Council (PARC) had contributed alot. Memon said that time had come when the cultivation of coconut and oilpalm should be done on commercial basis. He disclosed that aninternational research organisation of Germany which was doing research oncoconut and oil palm had already been contacted by the Sindh forestdepartment and expressed the hope that a break through will be made inthis respect.He said that this experimental farm had been initially handed over to theSindh Coastal Development Authority (SCDA) where research on coconut andoil palm was being conducted with the cooperation of the federalgovernment. He, however, added that now this farm had been transferred tothe Sindh forest department. He stated, a lot of work had been done oncoconut by the forest department and its plants were also being sold inthe nurseries of the forest department in an around Thatta. He, however,said that for the time being no expert was available for research on oilpalm but added that a team of experts would be constituted to conductresearch on oil palm.The project director, Sindh forestry development project, Muneer AhmedAwan, told the delegation of PCOPPS that a campaign had been launched inThatta and its suburbs to motivate the growers about coconut plantation.He said that it was a cash crop and if mass production was carried out,its by-products could also be exported. He concluded during the on goingtree plantation campaign, arrangements had been made to distribute thecoconut saplings.