Breaking News-India Palm Oil Imports May Rise as Tax Makes Soybean Oil Costly

By Thomas Kutty Abraham
Nov. 19 (Bloomberg) -- India, the world's biggest buyer of vegetable oil after China, may increase palm oil imports after the government imposed a tax on purchases of crude soybean oil, the main substitute product, a trade body said.
A 20 percent duty has been imposed on overseas purchases of soybean oil, the finance ministry said late yesterday. Imports of the commodity were duty-free before.
``There will be more palm oil imports,'' said B.V. Mehta, executive director of the Solvent Extractors' Association of India, in a telephone interview from Mumbai. ``This is good news for palm oil growers in Indonesia and Malaysia at a time when they are grappling with huge stockpiles.''