India May Make Refined Palm Oil Import Costlier: Sources.

NEW DELHI: India, the world's top buyer of vegetable oils, is likely to make imports of refined palm oil costlier by raising their base price, government and trade sources said, responding to tax changes by Indonesia that have put at risk the survival of Indian refiners.

But the government is unlikely to make any changes in the import duty of 7.7 percent levied on refined palm oil for fear of stoking already high inflation, especially during the festive season, when demand for edible oils is higher.

With Indonesia, the biggest producer, now nearly halving export taxes of refined palm oil in mid-September, Indian industry officials are pushing New Delhi to raise the base price, or tariff value, for refined palm oil.

India has already begun importing more refined, bleached and deodorised (RBD) palm olein from Indonesia ahead of a major Hindu festival in October, Diwali, potentially leaving domestic refining capacity idle.

The food ministry has already endorsed the industry demand and the proposal is now with the finance ministry.

"The government is likely to accept the food ministry's proposal of a hike in base price (of refined oils)," two government sources told Reuters on condition of anonymity, as the matter was still under consideration.

Source : brecorder.com