Indian government lowers import tariff value for gold, silver, vegetable oils

Poor soyabean crop this year and the arrival of the festive season could significantly increase demand for vegetable oil and gold respectively

The Dollar Business Bureau | @TheDollarBiz The Indian government has reduced the tariffs for several imported items, including gold, silver, brass scrap, poppy seeds, and various vegetable oils. However, the tariff value for areca nuts and poppy seeds remain unchanged. In a notification dated September 30, 2014, the Ministry of Finance announced the following changes: Gold1-TheDollarBusiness Veg oils-TheDollarBusiness Brass-TheDollarBusiness   As per the announcement, import tariff value on gold is down about 5.7% from previous month, on silver it is down 10.8% and on veg oils it is down by 0.2% – 5.8%. After declining almost 34% Y-o-Y to 670 tonnes in FY2013-14, India’s demand for gold is expected to increase this year with the arrival of the festive season and due to low global prices. Vegetable oil production in India is also likely to decline due to a poor soyabean crop this year, which is likely to fuel growing demand for veg oil imports in the coming months.

This article was published on October 1, 2014.