"The imports will not have any effect on domestic edible oil prices as shipment into the country will not have parity, though it could be a good decision in the long term," Malaysian Palm Oil Promotion Council (MPOPC) country representative Ashima Raheja said.

In an effort to rein in prices of edible oil and other essential commodities, government decided to allow import of oilseeds under OGL, which will facilitate shipments into the country without any restrictions by a license holder.

So far, edible oil imports had been under the restricted list.

Imports would not make any major impact as it was expected to be on a small scale. Oilmeal exporting units would also not be resorting to significant imports as the commodity' exports had been hitnow, Raheja said.

Sources in the department of edible oil and sugar said though the decision might help in future, it was unlikely to benefit consumers immediately.

Central Organisation for Oil Industry and Trade (COOIT) executive director KML Chhabra said any impact of government decision on domestic prices would depend on the method of allowing import and time-factor involved.

He said the decision to allow oilseeds import was welcome but how these measures would benefit domestic consumers and industry was a big question as many points were yet to be clarified by government.

Though the oilseeds imports have been allowed under split form and quarantine conditions, these have not been clearly specified by government, which is yet to come out with the relevant notification. Besides, import of rice bran has also been allowed.

Vanaspati Manufacturers Association of India (VMA) executive director SK Chadha said the import would not have any impact on the domestic prices in the next sixmonths.

Shifting of oilseeds from the restricted list to OGL had considerably enhanced the negotiating power of Indian traders in the international market and could work out to their advantage, Chhabra said.

"If prices of a particular item, either palmolien or soyabean are high in the international market, then we will always have the option of choosing the one with lower quotation," he said.

Traders would also be wary of the option of importing sunflower and soyabean due to the lack of parity but prices of most edible oils might remain bullish due to the recent ban on mustard oil sale.

The reported decision to place the onus of creating facility to split oilseeds would negate any possibility of imports cushioning the prices.

"We are closely examining the implications of such a decision," Chhabra said.

Raheja said relocation of oilseed crushing units, which are currently operating in central India, was a must for imports to be viable.

If India had to tap the long-term prospects of importingoilseeds, then the infrastructure would have to be got ready.

But government decision was a little late and it could have been taken at least 3-4 months earlier, she said, adding the move to import oilseeds had come just ahead of the peak season.

The decision to place oilseeds under OGL was expected to go a long way in raising the capacity utilisation of idle processing units and enhance exportable surplus of oilmeals, Chhabra said.