India again cuts import duty on edible oil

In a move to cool down edible oil prices during the ongoing festival season, the government has again cut the import duty on edible oils. This is the fourth consecutive time in a year the government has reduced the duty of the edible oil. Government has reduced base import duty on palm oil to 2.5% from 10% and crude soyoil and crude sunflower oil has been cut to 2.5% from 7.5% earlier. Now the effective duty which includes agri cess will be 24.75% from 30.25% earlier on CPO, crude soyoil and crude sunflower oil. This could potentially help in bringing down the prices of edible oil in the retail market. With the festivals ahead, edible oil imports are likely to see a surge in the coming month. In August, projected edible oil imports are pegged at 1.11 mln ton and so far in September, a total of 1.12 mln ton has already lined up at various ports, according to sources.

Technically, NCDEX refined soyoil September contract could witness selling pressure and hit 1330-1300 levels and on the higher side may find resistance at 1380-1420 levels. (CMP: 1363.60)