Voluntary Report - public distribution

**Date:** 3/5/2004

**GAIN Report Number:** IN4019

IN4019

**India**

**Oilseeds and Products**

**India Raises Soybean Oil Tariff Value**

**2004**

**Approved by:**

![](media/image1.wmf)Chad R. Russell

U.S. Embassy, FASNEWDELHI

**Prepared by:**

V. Shunmugam

**Report Highlights:**

India raises soybean oil tariff value; Post lowers soybean oil import
estimate.

Includes PSD Changes: Yes

Includes Trade Matrix: No

Unscheduled Report

New Delhi \[IN1\]

\[IN\]

The Government of India increased the tariff value for crude degummed
soybean oil by 10 percent to \$710 per ton, effective March 3, 2004, to
reflect high international prices. The official notification to this
effect is available at :
[www.cbec.gov.in/cae/customs/cs-act/notifications/notfns-2k4/csnt30-2k4.htm](http://www.cbec.gov.in/cae/customs/cs-act/notifications/notfns-2k4/csnt30-2k4.htm).
According to trade sources, the current CIF price of crude soybean oil
of South American origin at Indian ports is around \$740 per ton.

Post lowers its MY 2003 (Oct-Sep) soybean oil import estimate to 550,000
tons, reflecting the high import price and increased domestic production
of vegetable oils. Soybean oil imports during the first four months of
MY 2003 are estimated at 110,000 tons, compared with 283,000 tons during
the same period in MY 2002.

The current high international prices for vegetable oils and oil meals
is helping domestic growers realize higher prices for their oilseed
crops, which bodes well for increased plantings this fall.

**Table: Commodity, Soybean Oil, PSD**

+--------------+-------+-------+-------+-------+-------+-------+------+
| **PAD        |       |       |       |       |       |       |      |
| Table**      |       |       |       |       |       |       |      |
+--------------+-------+-------+-------+-------+-------+-------+------+
| **Country:** | **In  |       |       |       |       |       |      |
|              | dia** |       |       |       |       |       |      |
+--------------+-------+-------+-------+-------+-------+-------+------+
| **           |       |       |       |       |       |       |      |
| Commodity:** |       |       |       |       |       |       |      |
+--------------+-------+-------+-------+-------+-------+-------+------+
|              |       | **2   |       | **2   |       | **2   | YOM  |
|              |       | 001** |       | 002** |       | 003** |      |
+--------------+-------+-------+-------+-------+-------+-------+------+
|              | Old   | New   | Old   | New   | Old   | New   |      |
+--------------+-------+-------+-------+-------+-------+-------+------+
| #            |       | *     |       | *     |       | *     | (MO  |
| Market Year  |       | *10/2 |       | *10/2 |       | *10/2 | NTH/ |
|              |       | 001** |       | 002** |       | 003** |      |
| # Begin      |       |       |       |       |       |       | Y    |
|              |       |       |       |       |       |       | EAR) |
+--------------+-------+-------+-------+-------+-------+-------+------+
| Crush        | 4629  | 4629  | 3420  | 3420  | 5250  | 5750  | (    |
|              |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| Extra. Rate  | 0.18  | 0.18  | 0.18  | 0.18  | 0.18  | 0.18  |      |
|              | 47051 | 47051 | 47953 | 47953 | 47619 | 43478 |      |
+--------------+-------+-------+-------+-------+-------+-------+------+
| Beginning    | 176   | 176   | 190   | 190   | 126   | 117   | (    |
| Stocks       |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| Production   | 855   | 855   | 632   | 632   | 970   | 1060  | (    |
|              |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| MY Imports   | 1550  | 1550  | 1575  | 1350  | 900   | 550   | (    |
|              |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| MY Imp. from | 83    | 83    | 45    | 50    | 50    | 50    | (    |
| U.S.         |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| MY Imp. from | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| the EC       |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| **TOTAL      | 2581  | **2   | 2397  | **2   | 1996  | **1   | (    |
| SUPPLY**     |       | 581** |       | 172** |       | 727** | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| MY Exports   | 4     | 4     | 5     | 5     | 15    | 15    | (    |
|              |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| MY Exp. to   | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| the EC       |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| Industrial   | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| Dom.         |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
| Consume      |       |       |       |       |       |       |      |
+--------------+-------+-------+-------+-------+-------+-------+------+
| Food Use     | 2387  | 2387  | 2266  | 2050  | 1830  | 1612  | (    |
| Dom.         |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
| Consume.     |       |       |       |       |       |       |      |
+--------------+-------+-------+-------+-------+-------+-------+------+
| Feed Waste   | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| Dom.         |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
| Consume.     |       |       |       |       |       |       |      |
+--------------+-------+-------+-------+-------+-------+-------+------+
| **Total      | 2387  | 2387  | 2266  | 2050  | 1830  | 1612  | (    |
| Dom.**       |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
| **C          |       |       |       |       |       |       |      |
| onsumption** |       |       |       |       |       |       |      |
+--------------+-------+-------+-------+-------+-------+-------+------+
| Ending       | 190   | 190   | 126   | 117   | 151   | 100   | (    |
| Stocks       |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| **TOTAL      | 2581  | **2   | 2397  | **2   | 1996  | **1   | (    |
| DI           |       | 581** |       | 172** |       | 727** | 1000 |
| STRIBUTION** |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| Calendar     | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| Year Imports |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| Calendar Yr  | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| Imp. U.S.    |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| Calendar     | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| Year Exports |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+
| Calendar Yr  | 0     | 0     | 0     | 0     | 0     | 0     | (    |
| Exp. to U.S. |       |       |       |       |       |       | 1000 |
|              |       |       |       |       |       |       | MT)  |
+--------------+-------+-------+-------+-------+-------+-------+------+