"Import during the current year is likely to be marginally higher and may touch 5.8 million tonnes, out of which palm products would be five million tonnes, which is 12.5 per cent of world palm production," Solvent Extractors' Association (SEA) Executive Director B V Mehta said.
The vegetable oil import was 5.59 million tonne in 2006-07 oil year, SEA said. Out of that, 4.71 million tonne were edible oils and 2.5 lakh tonne vanaspati. The share of non-edible oils was 6.3 lakh tonne in the import basket, it added.
Presenting a paper at the five-day World Palm Oil Summit in Jakarta, which began on May 20, Mehta said "India will continue her dependence on imports to the extent of about 40 per cent of its consumption requirement."
Mehta said India's vegetable oil demand is expected to rise faster than the domestic production growth, leading to more imports. The edible and non-edible oil imports would grow at an average of about 3.5 lakh tonne every year, he added.
The SEA official said the demand for vegetable oils in the country is expected to increase from the current level of 13 million tonnes to 15.6 million tonne by 2010.
The estimate is based on per capita consumption increase of 4 per cent and population growth of 1.8 per cent. However, if per capita consumption growth moves higher, the imports would also be more, he noted.
Mehta also said that the current import tariff may be reviewed in September-October when new oilseeds crop arrives in the market. Currently, India allows duty-free import of crude oil and levies 7.5 per cent duty on refined varieties.
