India is likely to import 10 per cent more vegetable oil at nine million tonnes in the 2009-10 oil year ending October on sluggish domestic crushing, edible oil industry body SEA said.
Last year, imports stood at 8.18 million tonnes, it said.
"The vegetable oil imports are seen to rise this year to nine million tonnes as domestic crushing has fallen, while the demand is relatively upbeat due to higher per capita income and rising population," Solvent Extractors Association of India (SEA) Executive Director B V Mehta said.
Out of the total nine million tonnes import, palm oil products would comprise seven million tonnes, soyabean oil 1.5 million tonnes and sunflower oil 0.5 million tonnes, he said.
Mehta said: "Crushing has not picked up as cheap imports due to zero customs duty on crude oil and lower oilseeds production estimates from the 2009-10 rabi season, have made the business economically inviable."
In 2009-10 the country's domestic edible oil output is pegged around six million tonnes against the annual demand of 15.5 million tonnes, he said.
India is world's biggest importer of vegetable oil.
According to SEA, the country's overseas purchase of edible and non-edible oils were recorded at 4.29 million tonnes in the November-April period of the current oil year.
The shipments in the next six months may average at 4.7 million tonnes, it said, indicating that there would be a sharp jump in the shipment of soyabean oil.
The import of soyabean oil may increase to 1.5 million tonnes this year, as against 1 million tonnes in 2008-09 on account of a sharp drop in premium of soyabean oil over crude palm oil (CPO) in the global market, it added.
SEA, however, raised concern that lower crushing may increase the carry over stock this year and suggested that the imposition of import duties would encourage oilseeds growers to expand oilseed area during the forthcoming 2010-11 kharif season starting June.
