12/08/2009 (The Economic Times), New Delhi - The Centre has authorised five parastatals to import upto one million tonnes of edible oil to boost domestic supply the festive season upto March next year, a move that is expected to trigger an upspiral in the international market, especially for soya and palm oil, two of India's big imports.

The development comes just after global market analysts projected a record eight million imports this year by the country, beating China to the top rank. India is among the world's biggest edible oil consumers and annually imports huge quantities to the tune of some 4.5 to five million tonnes mainly from Brazil, Argentina, Malaysia and Indonesia, leaving it highly vulnerable to the ongoing price volatility in the global market. Imports peak usually during the festive season starting early August. According to official estimates, demand was increasing 4 per cent annually and had touched 13 mt in 2008-09.

The approval for the imports was given by the Cabinet Committee on Economic Affairs (CCEA) and the relevant notification is expected soon. The imports will be made by the STC, NAFED, PEC, MMTC and NCCF, starting as early as this month. Of these, the MMTC and the STC alone are expected to import as much as five lakh tonnes each.