India's vegetable oil imports in the 2009-10 oil year, which ended last month, may be higher than the forecast of nine million tonnes due to higher domestic demand, according to a noted expert.
"When I made the forecast that India would import nine million tonnes of vegetable oil this year, many experts disagreed. We can see the final outcome in a few days and we shall not only reach, but exceed that forecast," Godrej International Director Dorab E Mistry said in his paper.
"In the space of vegetable oil, India has surprised most people by the strength of its consumption demand," he said.
According to data compiled by the Solvent Extractors Association of India, total imports of vegetable oils, including edible and non-edible oils, increased by 5 per cent to 8.4 million tonnes during November, 2009-September, 2010, in comparison to the corresponding year-ago period.
In 2008-09, the country had imported a record 8.64 million tonnes of vegetable oil.
"Whilst China has relied on its domestic crush of imported oilseeds, India has relied on imports of palm and soya oils," Mistry observed.
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India imports soya oil from Brazil and Argentina and sources palm oil from Indonesia and Malaysia.
As part of measures to control inflation, the government had in early 2008 abolished import duty on crude edible oil and reduced customs duty on refined edible oil to 7.5 per cent.