NEW DELHI, March 27 (Reuters) - Up to 130,000 tonnes of crude soyoil imports, about two months worth of shipments, has started moving from Indian ports after the scrapping of a 20 percent import tax this week, traders and importers said.
Analysts said it should ensure adequate supplies and stabilise prices as the country heads into elections in April and May.
Traders had built up the stocks of soyoil, imported from Brazil and Argentina, at ports as they waited for the removal of the import tax on crude soyoil. It came through on Wednesday, a week after the trade secretary said the tax would be scrapped.
"The tax cut will expedite the movement of 125,000-130,000 tonnes crude soyoil stored at coastal warehouses," a leading Mumbai-based importer said.
In India, shipments can be unloaded and stored at warehouses recognised by port authorities, and any import tax is not levied until the shipment is moved from the warehouses.
Trade sources said the first import contract after the tax cut was finalised on Thursday, for the purchase of 5,000 tonnes of soyoil at a landed price of $779 per tonne at the Kandla port in western India.
Despite the removal of the tax, soyoil was still more expensive than palm oil, which also has zero duty and has lower freight costs as it is shipped from Indonesia and Malaysia.
At Kandla, landed cost of crude palm oil on Friday stood at $616 per tonne against the cost of crude soyoil of $774 per tonne.
Global soyoil prices have risen in recent days, affected by a farmers' strike in Argentina.
Source : REUTERS INDIA