20/05/2008 (Reuters, India), Hamburg - India is likely to sharply raise palm oil imports in 2007/08 as demand rises and the country turns away from soyoil imports, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.

"For May/Sep 2008 we expect Indian imports of soyoil to reach only 570,000 tonnes, down 41 percent from a year before," Oil World said. "Contrary to that, we estimate palm oil imports at 1.87 million tonnes, up by 15 percent on the year."

"We project palm oil imports at a record 4.56 million tonnes in Oct/Sep 2007/08, up by 900,000 tonnes or 24 percent from last season."

The strike by Argentine farmers, which could now end [ID:nN19193946], helped push global soyoil prices up, making palm oil a more attractive alternative to Indian importers, it said.

Bulk ocean shipping costs have increased recently, making it cheaper to import palm oil from nearby Malaysia and Indonesia rather than pay for the long distance shipping from the traditional soyoil exporters in South America and the U.S.

Import statistics show that India made no soyoil imports in April, it said.