08/11/2007 (The Economic Times), Nusa Dua - India’s vegetable oil demand is expected to grow by 6-7% each year for the next five years as its economy expands and population grows, an industry body said on Thursday.

The growth will translate to an additional demand of between 700,000-800,000 tonnes per year, B.V. Mehta, executive director of the Solvent Extractors’ Association, told a palm oil conference.

While demand is set to soar, the country’s vegetable oil output will only grow by around 350,000 tonnes per year, leading to higher imports in coming years, he said.

Total vegetable oils imports are estimated at 5.7 million tonnes in the year through October 2007. “India will continue to be a large importer of palm oil for quite some time as domestic output growth is unlikely to catch up with demand,” Mr Mehta said.