Mumbai (Commodities Control) – After annoucing revised import duty yesterday on CPO to 27.5% from 37.5%, 10 % down Govt today announced revised fortnightly custom tariff on CPO, CDSBO and RBD Olein.
Now, base custom duty on CDSBO, CSFO and CDRSO at 35% is 7.5% higher than base duty on CPO, giving lateral advantage to CPO. On top of it, and in double blow to CDSBO fortnightly import tariffs revised now (in $/MT), (New /Old) as as follows:
CPO 904/847 (+57) - Rs. 20564 (+1296)
CDSBO 1067/957 (+110) - Rs 30891 (+3184)
RBD 934/886 (+48) - Rs. 34767 (+1786)
The Duty differential of 7.5% between palm and soy will further hamper the spread in favor of palm, making CPO more attractive against import of soy oil.
To summarize, it will result in increase of import of CPO, increase MCX CPO prices towards recent highs again.
However, it will have positive impact on soybean and soybean oil prices in India. It will further increase the value of local soybean oil in India which is available without any duty, while making imported soy oil further out of parity agaunst local soy oil.
We now expect MCX CPO 1M futures prices to stay firm and trade back towards 900 Rs/10 KG in coming sessions, while NCDEX Ref soy oil 1M futures are likely to trade tighter towards 1080 Rs/!0 kg.
(Commodities Control Bureau)
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