20/06/2008 (The Economic Times), New Delhi - Edible oils, which have been a major contributor to 13-year high inflation in India, will remain under pressure for next one year in the global market, a US report has said.

"Vegetable oil prices will likely remain above historic levels during 2008-09 as demand is strong primarily due to surging growth in the developing world," the US Department of Agriculture has said.

India is the world's biggest edible oil importer after China. It meets 39 pc of its annual demand of 11 mn tons through imports.

Edible oil prices in the country have risen in the range of 30-42 per cent in the last one year.

Price pressure may ease a little due to increased availability of soyoil, sunflower seed oil and palm oil but "it will not be enough to push prices down from historic levels," the US report noted.

Globally, prices of all vegetable oils have doubled or trebled over the last 18 months a supplies were restricted due to various production shortfalls and policy imposed - export impediments.

Of eight major oils, global price increase was witnessed maximum in corn oil, which rose over 120 per cent to USD 1,556 per in 2008, followed by soyabean, coconut and palm oil, it said.

Experts said that any further spike in global rates would have impact on countries like India and China, where half of the domestic consumption is met through imports.

India's vegetable oil import is projected to go up by over 11 per cent to 6.06 mn tons this year. Of this, the maximum will be palm oil. Oilseed production is estimated to witness a marginal increase at 34.74 mn tons this year, it said.