The trade is passing through a worst ever crisis. At least half a dozen importers are on the verge of defaults. In the absence of buying, palm oil recorded an all time low of Rs 19,500 a tonne. The estimated crisis could be as high as Rs 3000 crore, reliable sources said.

``What we are seeing is just a tip of an iceberg. Several leading importers are facing payment problems as lots of small traders are not lifting the oils as per their earlier commitments, the traders said. While importers cannot deny delivery in the Kualampore markets, they are not able to sell the oils even in the domestic markets. Storage tanks of edible oil at various ports is full.

Malaysian traders have no other place but todump their excess oils in India, as China became reserve in the buying. India is the only buyer. Several small traders have defaulted in India, the report said. In Malaysia if one defaults, he will be sent to the jail, while in India defaulters could go scot free,'' a commodity trader at Vishal Exports Prem Das said in Ahmedabad.

He said that prices are falling like anything. The palm oil is sold at the price of a mineral water bottle. At present, palm oil rules around $360 C & F. Price could fall further to $350 C & F, he added.

In the forward markets deals around three lakh tonnes has been settled, there will be sizeable open positions in such forward deals, mostly facilitated by the Havala Holders. The forward buyers have not made payment since two months, said an analyst.

The route cause of payment problem is havala holders. They are not lifting the oils as per earlier commitments.

It has become a common practice, especially among northern traders, when deal become unprofitable they simply refuseto pay. Arbitration and settlement is a routine affair. Nobody is wiling to be drawn into litigations because of long judicial process. Overseas buyers also burnt their fingers in a temptation to get business from India. At present number of foreign firms are drawn in the arbitration and disputes in lifting of deliveries, said trade sources.

Soyabean price rebounded due to aggressive short covering by funds amid fear of dry spell in the Mid-West. CBOT November soyabean shot up to $ 4.68 per bushed from the recent low of $ 4.09. There is nervousness over a hotter and mostly dry US Mid-West whether. The Mid-West's soyabean crop was near or early stages of pod settling and pod filing when extreme heat can damage yields.

Crude Palm futures traded at Kualampore Commodities Exchange and closed at 1,035 Ringgit($ 272.37) a tonne. Among refined products RBD palm oil for August to December closed at $300 a tonne. RBD palmolein August-December was closed at 340 a tonne. Absence of forward premium indicatesunderlying bearish sentiments. Fundamentals are weak. Technicals also suggest bearish trend.