Friday, August 8, 2008

India's Edible Oil Imports To Gain Momentum - Aug 08 , 2008

India has imported 2,60,000 tonnes of cooking oil as part of its one million import programme so far and has set a target of one million tonnes of import by March 2009 to keep a check on food inflation. The decision to import the edible oil from countries like Indonesia, Malaysia and a few Latin American countries have proved 'helpful' in terms of controlling the price rise, officials said here today.

The Commerce Ministry officials said that if needed the government would even enhance the procurement quantity. The government's argument holds water because as many as 24 states have put in their demand request for their respective share of the imported edible oil.

The Centre has already allocated about 93,400 tonnes of imported oil to the states. Till now, official sources said Andhra Pradesh, Maharashtra and Tamil Nadu have been the three principal recipients. India imports about 5 million tones every year out of which nearly two-third is comprised of palm oil. The announcement to procure edible oil from abroad to check price rise was made in April by Agriculture and Food Minister Sharad Pawar, while he launched the distribution programme of the same in Hyderabad last month. Officials confirm that so far 52% of contracted imported oil has arrived at various Indian ports.

The state-owned PEC, NAFED, State Trade Corporation and MNPC are involved in this year's import programme. The import of palm oil is considered cheaper than soya oil as palm oil can be brought from countries like Malaysia, soya oil has to be brought from Latin American countries like Brazil.

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