MUMBAI, Jan 20 (Reuters) - Indian soyoil futures rebounded from an early fall on Tuesday after the farm minister said the government may tax crude palm oil imports.
At 3:14 p.m. (0944 GMT), the February contract NSOG9 on India's National Commodity and Derivatives Exchange was up 0.12 percent at 477 rupees ($9.7) per 10 kg, while the March futures NSOH9 rose 0.84 percent to 467.70 rupees.
India may tax crude palm oil imports and relax export rules for wheat and basmati rice, Farm Minister Sharad Pawar said, as tumbling prices and bumper crops allow the government to unwind measures imposed last year to smoothen domestic supply. [ID:nDEL327278]
However, price gains were limited because of weak overseas markets and a sharp drop in crude oil prices.
"There is no support from the overseas markets but the minister's statement has spurred fresh buying," Naresh Vijayvargia, a soyoil broker in central city of Indore, said.
April palm oil futures KPOJ9 on Bursa Malaysia Derivatives Exchange was down 1.34 percent at 1,834 ringgit a tonne at 0946 GMT.
Crude oil prices CLc1 were down 10.2 percent at $32.89 a barrel. Cheaper crude trims demand for soyoil from the biofuel sector.
Prices in the spot market in central city in Indore fell 0.5 percent to 43,700 rupees per tonne. ($1=49.1 rupees)
Source : REUTERS INDIA