Agri Buzz: India Wont Hike Base Import Price Of Refined Edible Oils Immediately - Officials .

India won't hike the base price of imported refined edible oils immediately to prevent any price rise in the local market, although domestic refiners have been lobbying for the step to avoid a surge in cheaper supplies from Indonesia, two food ministry officials said Thursday.

Indonesia cut the export tax on value-added oil in September to boost its local refining industry, but the move hurts Indian refiners as importing refined edible oil became cheaper than locally processing imported crude oil. Raising the base price would make imports of refined oil more expensive.

India levies a 7.5% import tax on refined oil, but the duty is calculated on the basis of base prices fixed by the government and not the market price. Imports of crude edible oil are tax-free.

For refined, bleached and deodorized, or RBD, palm olein that India mostly imports, the base value is currently $484 a ton, much lower than the market price of about $1,100.

Source : indiainfoline.com