Chennai 28/4/05 (Business LIne)  -  The Union Government on Friday raised the tariff values for palm group of oils by $7 a tonne, while keeping that of crude soyabean oil unchanged. On April 17, it had cut the values for the palm group of oils by $10 and that of soya oil by $4.

This is the third time within a month that the tariff values for edible oils has been revised. The hike (see table) in the values is in tune with the rise in global vegetable oil prices.

Veg oil firm up


Prices of vegetable oils have begun to firm up since last week on rising crude oil prices and expectations of a rise in demand for vegetable oils, especially rapseed oil, as bio-fuel. Crude oil prices, after closing at a record $71.17 a barrel last weekend are currently hovering around $71.

The hike could provide some support to mustard/rapeseed growers, who are selling their stocks to only National Agricultural Cooperative Federation (Nafed) as the oilseed's prices are ruling below the minimum support price of Rs 1,715 a quintal.

The tariff value is the base price on which the customs duty for various vegetable oils is worked out. While the effective duty on import of crude soyabean oil is 50.8 per cent, it is 88.8 per cent in the case of palm oils.

Crude palm oil for benchmark July contract rose by 8 Malaysian ringgits on Bursa Malaysia Derivatives to 1,481 ringgits ($408.55) a tonne. RBD palm oil for June delivery was quoted at $425 a tonne, while RBD palmolein ruled at $430. In the domestic market, RBD palmolein gained Rs 4 for 10 kg to Rs 395, while crude soyabean oil was up Re 1 to Rs 372.