22/9/06  MUMBAI (Reuters) - India's edible oil imports in the year ending October 2007 are expected to rise by about 1 million tonnes to 5.5 million tonnes from this crop year on strong demand and expected lower oilseeds output, a top international expert said.

Imports would go up with a rise in domestic consumption and changing food habits that have increased demand for items such as pizzas and packaged food, Dorab Mistry, director with UK-based Godrej International Ltd. told Reuters on Friday.

"Overall, imports will be on a strong rising trend, our consumption is also growing on stable prices," said Mistry, whose forecasts are watched with interest by the industry.

India's output of rapeseed to be harvested in the summer of the 2006/07 crop year would be 6-6.5 million tonnes, against 7 million tonnes in the summer of 2005/06, he said.

"I am not optimistic of rapeseed acreage in India," he said. "There will be a switch to wheat from rapeseed in the growing regions, as those who planted wheat got a much higher price last year."

"Right now, there is a fight for acreage in India between foodgrains, oilseeds and feedgrains."

Mistry also said winter-harvested oilseed output was also expected to fall on erratic weather conditions.

ENERGY NEEDS

Mistry said of expected global consumption of 120 million tonnes of major vegetable oils in 2006, nearly 9 million tonnes were purely to meet energy-related demand through bio-diesel and burning of palm oil for electricity in Europe.

By the end of 2007, the demand for energy needs could rise to 20 million tonnes, and that would lead to higher prices, he said.

"We may have seen the lows in palm oils, it will now go up," he said.

"The prices of Malaysian crude palm oil is also set to rise in the coming months on stagnant-to-declining acreage of oilseeds, bio-diesel demand and confirmation of El Nino weather phenomenon," he said, but did specify any price levels.

And while global wheat prices had risen this year, next year the prospects looked good for corn.

"This year it was a bull market for wheat, next year could be for corn because of ethanol production through corn crushing," he said.