Nafed imports 40,000 tonnes of edible oil

The National Agricultural Co-operative Marketing Federation that imported around 38,000-40,000 tonnes of edible oil during June-July, will step up imports of the commodity if asked by the Central government, a senior official said today. "Imports will depend on the government's view and the decision it takes, as also on global prices," the official said.

Separately, a government official said state-run agencies "" Nafed, MMTC, PEC and State Trading Corporation "" would be asked to import 100,000 tonnes of edible oil each, keeping in view the festivals coming up over the next few months, and a consequent rise in local demand and prices. India imports most of its edible oil requirements. Global prices have surged around 56 per cent year-on-year on the back of rising demand.

Last month, the government had cut customs duty on crude palm oil to 45 per cent from 50 per cent, and on refined palmolein to 52.7 per cent from 57.5 per cent. Duty on crude soybean oil was also reduced to 40 per cent from 45 per cent as international prices soared by over $100 a tonne in just one month.

Nafed is planning to sell 50,000-60,000 tonnes of mustard from its left-over stocks after processing it.

"We process mustard seed into oil and sell to packers. We also package it ourselves, and sell it in the market," the official said. Nafed is left with around 600,00 tonnes of mustard seeds from the stocks it procured during 2005 and 2006 rabi seasons. The purchases were made under the price support scheme of the Central government after mustard prices fell below the minimum support price due to the bumper harvest.