31/7/06 (The Hindu)   -  The Union Government on Monday hiked the tariff value of palm group of oils sharply by $15-21 a tonne. The value for soyabean oil was also raised by $4 a tonne.



The tariff value for crude soyabean oil has been increased by $15 to $447, while that of RBD palmolein by $21 to $484. For crude soyabean oil, the rate is $570.

The tariff value is taken as the base value by the Customs authorities to calculate import duties for various edible oils. The value has been raised in tune with the rising edible oil prices in the global market.

Palm group of oils have witnessed a rise of $30 a tonne in the last fortnight.

For crude soyabean oil, the tariff value is 45 per cent, while for crude palm oil it is 80 per cent and for refined oils 90 per cent. Besides, the imports also attract a countervailing duty of four per cent.

According to Kotak CSL Research, the revision will lead to crude palm oil rising by Rs 0.60 a kg and Rs 0.95 for RBD palm Oil. In the case of crude soyabean oil, the increase will be Rs 0.08 a kg upwards. "The change in the soyabean oil has been minimal, but with the increase in the prices of crude palm oil and RBD palmolein, we expect the demand for soyabean oil to pick up from current levels," it said.

With the hike, the landed cost of crude palm oil will be $868.14 a tonne and $971.68 for RBD palmolein. For crude soya oil $835.64.

In Kuala Lumpur, crude palm oil increased on robust exports from Malaysia this month. Benchmark September closed higher at $449 a tonne. RBD palm oil for immediate delivery was up $2.50 at $457.50, while RBD palmolein rose by the same margin to $465. In the Mumbai oil and oilseeds market, crude soyabean oil increased Rs 3 to Rs 398 for 10 kg, while RBD palmolein was up Rs 4 to Rs 435.