June 5 (Bloomberg) -- India, the world’s biggest buyer of vegetable oils after China, must increase the benchmark import price of refined palmolein to shield the nation from a flood of cheap imports, the country’s second-biggest buyer said.
“The tariff value of RBD palmolein is ridiculously low and it should be raised,” said Atul Chaturvedi, chief executive of Adani Wilmar Ltd., a venture between Adani Group and the world’s biggest palm oil trader Wilmar International Ltd. “Higher tariff will protect local industry and check cheap imports.”
The benchmark prices, also known as tariff value, introduced to prevent traders from paying lower import taxes by understating edible oil prices, are revised in line with global prices. Still, India’s government hasn’t changed the benchmark since August 2006 to ensure cheap supply of cooking oils to the nation’s consumers, who rely on imports to meet half their annual demand.
The tariff value on refined, bleached and deodorized palmolein is $484 a metric ton.
Source : Bloomberg.com