28/09/2008 (Reuters), Mumbai - Indian traders who reneged on contracts to import palm oil hope to negotiate discounts from suppliers to resolve disputes but they need to act fast to retain credibility, trade officials and an analyst said on Sunday.

Several Indian importers backed out of import deals as prices of crude palm oil fell sharply after they signed contracts.

A leading edible oil trader in India, who did not want to be identified, said there were no buyers for an estimated 240,000 tonnes of crude palm that had been imported at high prices.

He said disputes would be resolved if suppliers agreed to offer discounts to Indian importers.

Derom Bangun, executive chairman of the Indonesian Palm Oil Association said buyers and sellers had long-term relationships and were likely to resolve disputes amicably.

"Usually they come to a mutual understanding," he said.

Dorab Mistry, a leading analyst, said about a quarter of Indian importers had defaulted, and urged them to honour their contracts.

"India's reputation is very much at stake," he said, adding that suppliers had honoured their contracts in the past when prices rose.