NEW DELHI, Jan 2: India, the world’s largest edible oil importer, on Monday reduced base import prices of palm and soyabean oils. But traders said the reduction in base import prices was below market expectations.

Of the approximately 11 million tons of edible oils India consumes a year, it buys nearly half in the form of palm oils from Malaysia and Indonesia and soft oils from Argentina and Brazil.

A finance ministry official said the base import price of crude palm oil had been cut to $417 a ton from $433, while that of crude soybean oil had been reduced to $497 a ton from $510.

India fixes base prices to calculate customs duties to prevent the loss of revenue due to under-invoicing by importers. Traders pay import duties on base values irrespective of the prices paid for the oil.

The government also reduced the prices of RBD (refined, bleached and deodorised) palm oil to $432 a ton from $435, other palm oil to $425 from $434, crude palmolein to $418 from $440, RBD palmolein to $421 from $445 and other palmolein to $420 from $443.—Reuters