MUMBAI (Commoditiescontrol) - According to media reports, India the largest consumer of vegetable oil globally, may raise duty on imports of vegetable oil in the country.
According to market source, the Finance Ministy is contmplenting on imposing 25 per cent duty on imports of refined edible oil as against 15 per cent levied currently. Similarly, duty on crude oil will be doubled to 15 per cent from the current levy. Decision to this effect will be taken in the meeting scheduled to be held tomorrow i.e. Wednesday 16th September 2015.
The industry has been demanding imposition of higher duty on vegetable oil imports in order to protect domestic farmer.
Solvent Extraction Association of India (SEA) had raised concerns over rising imports of vegetable oil in India. In its recent release it said India is being used as a dumping ground for excessive supply of edible oils in the world market. Excessive import has put tremendous pressure on the local prices, which are at a level where Indian oilseeds growing farmers are in distress and losing interest in oilseed crop. The country’s dependence on imported oil has further increased to nearly 70 per cent, an alarming situation for the country’s food security.
According to SEA, India's vegetable oil imports in August jumped 3 per cent from a year earlier to 13.7 lakh tonnes, a Mumbai-based trade body said on Tuesday. The country's vegetable oil imports since November 2014, when the current marketing year began, totalled 117 lakh tonnes, up 23 per cent from a year earlier, the SEA statement suggested.
Import of Soybean Oil in August is reported at 4.06 lakh tonnes which is highest after reporting of 3.49 lakh tonnes in earlier month of July 15 and 3.10 lakh tonnes in August 2001.
Interestingly, the refined soybean oil prices have surged nearly two per cent on the domestic derivative markets. Refined soyoil futures on the National Commodity & Derivatives Exchange (NCDEX) have surged higher on fresh, adding in excess of 1.50 per cent on fresh traders interest. The October delivery contracts last quoted 1.89 per cent or Rs 10.70 strong at Rs 576.60/10kg. Other contracts were also ruling firm.
Traders said that the price rise is markets anticipatin of the government move. Prices are currently building on the expectation.
(By Commoditiescontrol Bureau; +91-22-40015533)