Indian soyaoil futures fell more than 3 percent by Wednesday afternoon, breaching the lower circuit, after a top official said the government had cut import duty. Trade Secretary G.K. Pillai did not give any details, but traders said import tax on crude soyaoil, currently at 20 percent, may be totally withdrawn bringing it on par with crude palm oil.
By 1:54 pm (0824 GMT), the April contract was down 3.2 percent at 439.3 rupees ($8.7) per 10 kg on the National Commodity and Derivatives Exchange. The March contract was down 2.6 percent at 447 rupees. "A duty abolition will pave the way for a further influx of cheaper edible oils, which will be negative for the domestic edible oil complex," Alimuhammad Lakdawala, an analyst in Anand Rathi Commodities Ltd, said. Traders said the duty cut was aimed at keeping domestic prices low ahead of national elections in April and May.