24/08/2008 (The Hindu), New Delhi - India's edible oil imports are likely to rise by eight per cent in 2008-09 in volume terms, with the palm oil becoming a preferred choice of importers, a US report has said.

The report by the United States Department of Agriculture (USDA) has revised upwards its estimates of edible oil imports by India to 5.4 million tons in 2008-09 from the earlier forecast of 5 million tons.

The edible oil imports from October 2007 to June 2008 have risen by 6 per cent to 3.6 million tons, compared with the same period last year, the report stated.

It added that the landed price of palm and soyaoil started rising from October 2007 till April 1, 2008, when the government scrapped import duty on crude palm and soyaoils.

Soyaoil was selling at a premium of over USD 150 a ton over palm oil between December 2007 and July this year, making the former a preferred choice for imports, it stated.

Plam oil constituted about 87 per cent of total edible oil imports during October 2007 to June 2008, while the share of soyaoil declined by a half to just 13 per cent, the report points out.

The imports of RBD palmolein were significantly higher in June this year, mainly due to the imports by public sector companies on behalf of the government to increase supply through the public distribution system, it said.

To insulate common people against the price rise, state-owned MMTC, STC, PEC and cooperative major Nafed are importing edible oils on behalf of the Centre which would be distributed at a subsidised rate.