India Edible Oil: Falls as import duty cut still weighs on sentiment

Informist, Thursday, Oct 14, 2021

By S. Anirudh Iyer

NEW DELHI – Futures contracts of all the components in the edible oil basket traded lower today on the National Commodity and Derivative Exchange and Multi Commodity Exchange of India, as the recent cut in import duty continued to weigh on sentiment.

* The government on Wednesday cut the effective import duty on CRUDE PALM OIL to 8.25% from 24.75% and duty on REFINED SOYOIL to 19.25% from 35.75%, which is likely to result in an increase in supply in domestic markets.

* The government cut import duty on key edible oils ahead of the festival season to ensure the commodity remains affordable to consumers going ahead.

* SOYBEAN contracts ended lower as rise in arrivals of the new crop from the 2021-22 (Jul-Jun) kharif season in markets continue to weigh on prices.

* Also, the overall sentiment for the commodity, along with MUSTARD, has taken a hit as the government has imposed stockholding limits on oilseed and edible oils till Mar 2022.

* At 1917 IST

–November contract of soybean was down 0.8% at 5,245 rupees per 100 kg on NCDEX

–November contract of refined soyoil was down 0.4% at 1,236 rupees per 10 kg on NCDEX

–October contract of crude palm oil was down 1.5% at 1,100 rupees per 10 kg on MCX

–November contract of mustard down 0.9% at 8,080 rupees per 100 kg on NCDEX

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Pranav S. Joshi

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