20/10/05 NEW DELHI,(Asia Pulse) - Global Commodity trading major Cargillon Wednesday favoured an international-linked price mechanism for Indianedible oil imports in order to avoid unwanted price manipulation in thedomestic market.

An internationally-linked base price will help eliminate undesireableprice fluctuations, said Hardeep Singh, chairman of Cargill India, onsidelines of chamber body FICCI organised conference here.

He favoured a frequent revision in the base import price for eliminatingprice manipulation in domestic market.

Singh, however, said the mechanism of revising base price for importededible oil should contain an element of surprise to keep the speculatorsaway from influencing the market.

The base price for imported edible oils were revised last week by anofficial notification which raised the base price for imported crude palmoil to $426 per tonne from 402.

Soybean base price was also increased to $518 per tonne from $508.

The difference between the base prices of crude palm oil and soybeanreflects the distance, said a trade official.

India imports nearly half of its 110 lakh tonne annual demand for edibleoils.

Base import price for RBD palm oil was also raised to $436 from $420,other palm oil to $431 from $411, crude palmolein to $438 from $418, RBDpalmoil to $447 from $430 and other palmolein to $443 from $424. (PTI)