14/01/2009 (Indopia.in), New Delhi - India&aposs edible oil import more than doubled in December 2008 over the year-ago period, as traders are buying on a large scale on apprehension that the government may impose import duty on crude palm oil.

According to an industry estimate, edible oil import last month shot up by 160 per cent to 7,19,125 tonnes from 2,76,782 tonnes in the corresponding period in 2007.

"The import of edible oils sharply increased due to a sharp drop in international prices and anticipation of import duty by the government,"an industry expert said.

Releasing the edible oil import data, Mumbai-based Solvent Extractors Association (SEA) said edible oil import in first two months of the current oil year (November-October) has nearly doubled to 12,38,157 tonnes from 6,24,102 tonnes in the year-ago period.

A section of the edible oil industry has been demanding that duty be imposed on the import of such oils following a slump in the prices in overseas markets to safeguard the interests of domestic industry as well as farmers, who would otherwise be a victim of cheaper imports.

The government had in November last year levied 20 per cent duty on crude soyaoil. However, the industry expressed its disappointment, saying the duty should rather have been levied on crude palm oil (CPO), which accounts for about 85 per cent of India&aposs edible oil import.

As part of its move to contain rising inflation, the government had in April last year scrapped import duty on crude edible oil, while the duty on refined oils was reduced significantly to 7.5 per cent.