India's vegetable oil prices have risen despite its huge production

Introduction: Dow Jones Bombay news: although India's summer crop (kharif oil seed) production is expected to improve, but in the next few months, India's main vegetable oil prices are expected to continue to rise with the international market price That's what members of the Indian vegetable oil Association said at their annual meeting on Sunday Vegetable oil prices are expected to get a boost as the Indian government looks unlikely to intervene, or further reduce import tariffs following the October and November tariff cuts on vegetable oil Over the weekend, India's vegetable oil industry estimated that the summer seed production in 2001 was 12.3 million tons, up 13.4% from 10.85 million tons in 2000 "Local production has little impact on domestic prices," said B.V Mehta, executive director of the soluble extractors Association of India (seaI) This is unlikely to change the price level " SeaI is also a member of the production evaluation committee According to the insiders, the increase of kharif production is mainly due to the harvest of peanuts in Gujarat State in western India, because of the abundant rainfall in rainy season Peanut production is likely to reach 5.3 million tons in 2001, an increase of 32.5% over last year's 4 million tons Although tariffs on imported cooking oil were cut in October and November, the price of India's main cooking oil rose significantly from a month ago On Friday, 24 degree refined palm oil closed at 29900 rupees per ton (48.405 rupees per dollar), up 12% from 25700 rupees per ton in the same period in October Refined soybean oil closed at Rs 29800 a tonne, up almost 15 per cent from RS 26000 a tonne in the same period last month Crude soybean oil closed at RS 27200 per ton, up 14% from RS 23800 per ton in the same period last month International price is the main factor determining the price of vegetable oil in India, because India's oil seed production cannot meet the demand and needs to import a large amount of edible oil As the world's top edible oil importer, India imports most of the palm oil needed from Malaysia and Indonesia, and the soft oil needed from Latin America [although the price rises, there will be no reduction in import tariff] the Indian government is unlikely to further reduce the import tariff of edible oil Asked if a recent rise in the price of cooking oil would lead to tariff cuts, India's Food Minister said, "there are no such proposals." Kumar told reporters at the adjournment of the 39th All India Summer oilseed Congress During the two-day meeting, Indian vegetable oil industry companies discussed the key data of annual estimates of Indian summer oilseed crops India's vegetable oil industry has been protesting several de facto government decisions to cut import tariffs in October and November Last week, India reduced import tariffs on crude sunflower and safflower oil from 75% to 50%, and refined soybean oil from 75% to 45% However, only 150000 tons will be subject to lower tariffs, and imports outside the quota will still be subject to the original 75% tariff In October, the Indian government reduced the import tax on crude palm oil from 75% to 65%, while lowering the basic import price of palm oil products, according to which importers pay import duties The base price of 24 degree refined palm oil was lowered from $372 per ton to $307 per ton, while the base price of crude palm oil was lowered from $337 per ton to $286 per ton According to industry sources, tariff cuts have had a negative impact on Indian oilseed farmers, who are harvesting kharif crops.