``We are unnecessarily going to import far greater quantity of edible oil costing between 700 million dollars to one billion dollars of precious foreign exchange during the current year,'' the chairman of Federation of Oilseeds Cooperatives and Growers of India, Venkatrao Nadagouda told PTI here.

He said as against the import requirement of 12 lakh tonnes of edible oil during the current oil year (September, 1998 to October, 1999), the country will witness an import of 30 lakh tonnes, which could adversely affect the domestic industry.

Gowda said though the country would require about 73 lakh tonnes of edible oil this year, its availability is likely to cross 90 lakh tonnes, which will affect the profitability of the farmers.

Gowda also demanded a reduction in the import duty of oilseeds for the domesticsolvent extractors to facilitate its import till new crops are made available.

``The solvent extractors are facing a peculiar situation wherein they are facing a shortage of oilseeds and the government is importing high levels of edible oil,'' he said.

Meanwhile, the president of the Solvent Extractors' Association of India, Ajay Tandon said the government's step to liberalise import would make India completely dependent not only on edible oil import but also import of oilseeds.

``While we are only demanding reduction in the duty of oilseeds from the current level of 40 per cent for tiding over its current shortage till the domestic oilseeds are available, we might permanently become dependent on oilseeds import, if such edible oil imports continue,'' he cautioned.

He said last year India imported over 2.5 million tonnes of edible oil worth Rs 6,500 crore to bridge the shortfall, which was, however, only 1.4 million tonnes.

Gowda felt India will end up importing oilseeds and edible oil worth Rs20,000 crore per annum in the next few years if the oilseeds growers shift over to other more profitable crops.

``The danger signals are very obvious and it is up to the central government to immediately review its policies regarding import of edible oil and oilseeds rather than taking hasty policy decisions,'' he said.