12/03/2008 (Commodity Online), Indore - Worried over the rising inflation rate sin the country, the government may cut the import duty on edible oil by 10 per cent.

According to officials at the Indore-based Soybean Processors’ Association taxes on palm oil and soybean oil could be reduced or state-owned trading companies may increase overseas purchases.

Palm oil and soybean oil surged to records this month, complicating efforts by the government to rein in inflation.

MMTC, a state-owned trading company, last week called bids to import 40,000 tonnes of crude soybean oil and 6,000 tonnes of crude palm oil for April-May delivery.

The government charges 40 per cent import duty on crude palm oil, down from 60 per cent at the beginning of last year. Tax on imports of crude soybean oil was lowered to 40 per cent from 51 per cent in 2007.