NEW DELHI, July 1 (Bernama) -- India would keep the interest of its oilindustry and oilseeds farmers in mind when signing the Free TradeAgreement with Thailand.

This assurance was given by India's Minister for Commerce and Industry,Mr. Kamal Nath to the two leading industry associations - the SolventExtractors' Association of India (SEA) and the Central Organisation of theOil Industry and trade, a report in the Economic Times said.

Delegates from the two associations had called on the minister and hadexpressed fears that duty-free imports of vegetable oils from Thailandunder the proposed agreement between the two countries would flood theIndian market.

Fearing that duty-free imports of vegetable oils from Thailand will spelldoom on the Rs.170,000 million (US$3,777 million) domestic edible oilindustry, industry representatives had requested the minister not toinclude vegetable oils in the list of duty-free items while finalising theFTA with Thailand, the report said.

Thailand is not a major producer of edible oil. But if duty-free importsof edible oil from that country are allowed, it may be used as a conduitby a section of traders to route their imports from other countries.

About 80 percent of India's edible oil imports come from Indonesia andMalaysia, the two prime producers of palm oil.

-- BERNAMA