Saturday, October 25, 2008

No Cause For Import Duty On Edible Oils - Oct 25, 2008

Mumbai: With kharif 2008 harvest and market arrivals gathering momentum, domestic oilseed prices have started to come off their recent highs. A sharp downward correction in global vegetable oil prices since July this year is witnessed exerting its influence on the domestic market, given the high level of imports into the country. Although many should have seen it coming, the precipitous decline in global prices has put the domestic industry. in the defensive as it failed to see the writing on the wall, having got carried away by the bullish fervour.

Of overseas suppliers in the wake of alleged large-scale contract defaults have not helped the cause of Indian importers either. It is a pity the industry did not learn any lesson from the long bear run of 2001-02.

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