New Delhi, Oct 22 - India is likely to tax edible oil imports and scrap an export tax on basmati rice next month, which will reverse some steps taken to tame inflation as the market situation has changed, a federal minister said.
"Global edible oil prices have fallen and have created problems for producers here. We will soon decide on imposing duty on imports," Sharad Pawar told reporters on Wednesday.
Malaysian crude palm oil futures prices fell more than 5 percent on Wednesday to their lowest since October 2006 amid a general selloff in commodities, led by sliding crude oil prices which were down 3.7 percent at $69.5 per barrel at 0750 GMT.
The Indian government, facing galloping inflation a year before general elections had allowed duty-free imports of crude edible oil, banned export of non-basmati rice and levied an export tax on basmati to bolster domestic supplies.
"We can think of removing export duty on basmati rice after Diwali. Allowing exports of edible oils are also on the agenda," he said.
Diwali, or the festival of lights, boosts demand for commodities such as gold, sugar and edible oils in India. The festival is on Oct. 28.
"All these issues will be considered after Diwali but removing ban on export of non-basmati rice is not under consideration."
Earlier, the president of All India Rice Exporters' Association, Vijay Setia, told Reuters on the sidelines of a conference in Thailand that curbs on rice exports were likely to continue until the 2009 crop is harvested in October and November.