Government has cut the import duty on crude palm oil to 10% from 15% for a period of June 30 to September 30 2021. Effective duty on the CPO was however at 35.75 percent (15% duty + 17.50% Agri cess + 10% Social welfare Cess). This has been undertaken to cap the rise in the edible oil prices which has remained inflated over the last few months due to supply shortage of oilseeds particularly soybean and mustard. One kiloliter of branded soyoil in the retail market is being sold in the range of 175-185 rupees while mustard oil is being sold in the range of 180-190 rupees. India has traditionally been one of the largest importers of CPO and refined palm oil due to domestic consumption. Government regulates the import of the above edible oils through imposition of customs duty to safeguard domestic refiners and farmers. Fear of stalled south west monsoon progress and probable impact over condition of the the sown crop of soybean in the key states has also likely to have prompted the government to cut the customs duty of palm oil.
Refined soyoil July contract may find good support at 1215-1175 level and face resistance at 1278-1300 (CMP:1249)