INDIA GUJARAT TO IMPORT PALM OIL MEET SHORTAGE

AHMEDABAD, June 6 (Reuters) - India's western state of Gujarat will importpalm oil to meet a shortfall in supply of groundnut oil, a state ministersaid on Wednesday.Gujarat, India's largest groundnut producing state, is experiencing asevere shortage of groundnut oil due to a crop failure for the thirdstraight year.The state produced about 1.2 million tonnes in 2000/01(November-October), down from the normal output of about three milliontonnes, due to lack of rainfall."The import will be done through the State Trading Corporation (STC)and we hope to begin supply in the state by end June," Borkhariya toldReuters.The government was planning to supply imported oils at subsidised ratesthrough its network of fair price shops under the public distributionsystem.The minister, however, refused to say how much the state would import."Its a business secret and we will import enough to meet whatever be therequirement," he said.But, a state government official, who did not want to be identified,said the imports would be mostly RBD palm olein and bought from Malaysia.Gujarat, a predominantly vegetarian state, consumes the premiumgroundnut oil and the shortage in groundnut output has sharply pushed upoil prices.Groundnut oil prices in Gujarat have jumped to 425-450 rupees per 10 kgfrom about 350 rupees per 10 kg a month earlier.