``STC has currently unsold imported stocks of around 50,000 tonnes and food ministry has asked the corporation to go slow in importing any further quantity,'' a senior food ministry official told PTI on conditions of anonymity.

STC, which is the only canalising agency for edible oils into the country for supply through the public distribution system (PDS) has imported 1.78 lakh tonnes between July 1998 and till date, the official said.The stocks with the corporation have been piling up during the last few months as lifting by the state governments was not up to the expectation, he said.

STC imports edible oils mainly palm oil on directions from the food ministry and approval by the cabinet committee on prices depending on the demand-supply gap in the domestic market.

While India's edibleoil requirement is estimated to be around 85 lakh tonnes, the country produces little over 70 lakh tonnes, leaving a supply gap of nearly 15 lakh tonnes.

Apex edible oil industry organisations including the Solvent Extractors' Association have projected India's imports during the current oil year (September 1998 to October 1999) to be 30 lakh tonnes as against nearly 25 lakh tonnes imported the previous year.

The huge imports being made by private traders taking advantage of depression in global edible oil prices too have reduced the PDS requirement of the commodity, sources said.

STC received government mandate to import palmolein last year when prices had risen to unprecedented heights following a fall in domestic oilseeds output.

India produced 220.2 lakh tonnes of oilseeds in 1997-98 as against 243.8 lakh tonnes the previous year and is estimated to have recorded a good crop of 253 lakh tonnes during 1998-99 oil year.

The food ministry official said government was keeping a close watch on thedomestic price situation and could direct STC to import when demand showed signs of revival.

``STC has already entered into a few contracts for delivery in July and August and if prices go up as demand picks up we could ask them to import more,'' he said.

However, the official said prices were expected to remain subdued at least until the end of monsoon.

With instances of oilseeds prices falling below the minimum support price (MSP) in some areas, farmers are estimated to have held back at least 40 to 45 per cent of the rapeseed/mustard and soyabean crop of 64.4 and 67.7 lakh tonnes respectively.

``Farmers are likely to unload the stocks in the coming months and keep domestic prices of various edible oils under check till the beginning of festival season,'' the official added.