India at the end of May allowed duty-free imports of 2 million tonnes each of soyoil and sunflower oil for the present and next fiscal years ending March 31, as part of efforts to maintain a lid on local edible essential oil prices.
Through the end of June, soy oil’s premium over oil from palm was less than US$150 per tonne, but since palm oil attracts a 5. 5 percent import tax, palm oil was effectively more costly for Indian buyers, brokers said.
But again the gap between soyoil and palm oil has increased above US$350 for each tonne in the past couple weeks, making palm oil buys more attractive for refiners, the SEA said.
“In August, palm oil imports could rise above 700, 000 tonnes. There was huge buying in July right after prices were corrected, ” said the Mumbai-based dealer having a global trading firm.
Malaysian palm oil prices fell to their lowest in more than a year in Come july 1st.
India purchases palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Ukraine and Russia.