NEW DELHI (Dow Jones)--India's edible oil prices were lower in theweek to Friday in light trading."The market is just fixated on rumors of reduction in tariff value forcrude and refined palm oil. Demand won't pick up unless governmentannounces a cut in tariff value," said a trader in Delhi.India's federal government sets benchmark dollar prices for allimported edible oils, on which it calculates customs duty.The price, called tariff value by traders, has not been changed forpalm oil for the last 10 months, even though international prices of palmoil are much below the benchmark price.This high benchmark price has made Indian palm oil prices moreexpensive than other countries in the world. Traders are expecting thegovernment to soon cut the benchmark price, as the country is grapplingwith high inflation and any cut in commodity prices will be welcomed bythe government.As a result of the persistent rumors on tariff value, traders arewithholding their purchase of edible oils, since if a tariff cut happens,they can buy palm oil cheaply.India imports five million tons edible oil annually to supplement fivemillion tons domestic production. Around 74% of India's edible oil importsare palm oils.Monsoon cocern, that were high in July, have now eased. Monsoon rains,which were scanty in July, have been ample over the past two weeks,leading to a revival in prospects of oilseeds such as groundnut andsoybean, which is being sown at present.India's summer-sown oilseeds is planted from June to August andharvested in September. India's June-September monsoon rains are the majorsource of water for the country's oilseeds crop.Friday, refined palm oil was at 41,500 rupees ($1=INR46.28) comparedwith INR42,000/ton last week. Crude soy oil was at INR42,000/ton comparedwith INR42,800/ton.