India’s introduction of higher import duty on vegoils had a short-lived impact on prices and the market bounced back pretty quickly.
Main affected vegoil was soybean oil of Argentinean origin. It is mainly due to the fact that India could cover about 1/3 of its soyoil demand by local crush, and majority of the imported soyoil is coming exactly from Argentina. As the news about Indian government considering a proposal to raise import duties first started to circulate the market – around 29 Aug – Argentinian soybean oil prices dropped from its peak by over 50 USD/MT during the first week of September.
After this, prices recovered and once the higher import duties on crude oil and refined vegoil were official introduced on 14 Sep, the prices’ reaction was subdued.
What was the development of sunoil prices to India following the duty change, you can find in our Premium Reports here https://asapagri.com/premium
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