The quantity of total edible oil imported through Chennai Port has been 4.13 lakh tonnes as of November 1998, against 4.60 lakh tonnes the previous year for the corresponding period - slightly lower in comparison. Nevertheless palmolein, an oil of major consumption here was imported to the tune of 3.46 lakh for the same period tonnes against 3.43 lakh tonnes in the previous corresponding year.

All India figures also show a growth in the import of palmolein as well in the import of 20.86 lakh tonnes against 17.50 lakh tonnes the previous year.

However, despite a complete exemtion from sales tax given to edible oils by the Tamil Nadu government (recently extended even to rice bran oil and cotton seed oil, not consumed much here), groundnut oil and gingelly prices have risen. As ofJan 17, 1998 groundnut oil cost Rs 3600 per quintal now gone upto Rs 4050 as of January 20, 1999. This is a normal price increase, says the association, on account of rise in other input costs such as freight.

Gingely oil which was Rs 3950 as of Jan 17, 1998 has gone upto Rs 5,500 per quintal this month. This was because of a shortage of seeds, according to the association. Production of oil seeds is only 40,000 tonnes here, but consumption is closer to 5.6 lakh tonnes per annum. Crop failure in Andhra Pradesh was the main cause for prices shooting up as Tamil Nadu had to depend entirely on inflows from Gujarat.

But gingelly oil prices are likely to come down and offer some relief to customers this year as Gujarat had a good crop, said the association.