23/09/2008 (Bloomberg) - MMTC Ltd., India's biggest state- owned trading company, called for bids to import 18,500 metric tons of palm oil to ease a shortage and curb prices.

The company is seeking 6,000 tons of refined, bleached and deodorized palm olein for delivery by Oct. 5 at Kakinada port, according to a tender document on the government's Web site. A further 11,000 tons of crude palm oil is required for delivery at Kandla and Mumbai ports by Oct. 15.

India, the world's second-biggest buyer of vegetable oils, buys palm oil from Indonesia and Malaysia, the biggest producers, and soybean oil from Argentina and Brazil. The government has asked state trading firms, including MMTC, to buy 1 million tons of edible oil to sell to the poor at below-market prices.

MMTC also plans to import 1,500 tons of refined, bleached and deodorized palm olein for delivery between Sept. 20 and Oct. 15 at Kandla port, the company said. Suppliers have until 11:30 a.m. Sept. 25 to submit offers for the tenders.

India's cooking oil imports climbed to 569,538 tons in August from 469,234 tons a year earlier. Imports in the year to October may reach 6 million tons, 7 percent more than a year ago, according to the Solvent Extractors' Association, which represents about 800 oilseed processors.