``The demand-supply gap for edible oil is not a fixed one. Edible oil consumption in the country is price elastic and when it is cheap the demand tends to go up,'' secretary, sugar and edible oil department in the food ministry , RP Sinha, told PTI.

He was responding to a question on the domestic solvent extractors' demand to raise customs duty on edible oil imports in view of domestic oilseeds and edible oil prices crashing on large-scale imports.

Domestic edible oil industry, led by the Solvent Extractors' Association of India (Sea) are demanding that duty on edible oil imports be raised to 40-50 per cent from the current 15 per cent.

``If duty on edible oil imports is not raised to that level it should be restored to the previous level of 25 per cent,'' Sea had contended in a letter to prime minister Atal Bihari Vajpayee.

The government had last year cut the duty by 10 per cent after prices of edible oil began to spurt on supply shortage and rise in global prices.

India's edible oil demand this season (November 1998- October 1999) has been projected at 84 lakh tonnes against a supply of 68 lakh tonnes.

But edible oil imports, encouraged by lower global prices, have already touched 25 lakh tonnes in the eight months of the season against 7.5 lakh tonnes during the corresponding period last year.

Sea has contended that the large-scale imports have led to oilseeds prices ruling lower than the minimum statutory prices for these commodities announced by the government.

But Sinha said apart from groundnut and soyaoil, prices of other oils were ruling higher than the prices in 1997.

``We can not take 1998 prices into consideration as it was an abnormal year when prices increased sharply,'' he said.

Groundnut oil prices were ruling at Rs 3,620 a quintal in June 1999 against Rs 3,652 in June 1997.

Last year, it ruled at Rs 5,000 during the same period.

Soyaoil prices ruled at Rs 2,310 a quintal in June 1999 against Rs 3,200 in 1997.

Prices of sunflower seed, gingelly (til) and other seeds in comparison to the 1997 situation were ruling higher, Sinha said.

Food minister Surjit Singh Barnala has also ruled out the possibility of government intervention in discouraging edible oil imports, saying imports were on demand.

According to Sea data, groundnut oil prices as on July 23 this year was Rs 3,600 a quintal and in comparison, prices during the same period in 1997 was Rs 3,693. Last year, it ruled around Rs 5,000 during the same period.

Sunflower oil prices in July ruled at Rs 2,430 a quintal against Rs 2,700 in 1997 and Rs 4,200 in 1998.

Palmolein prices this July were sharply lower in the recent past at Rs 2,000 a quintal against Rs 2580 in 1997 and Rs 4070 last year.

Soyabean prices were lower at Rs 2,190 against Rs 2505 in 1997 and Rs 3,666 last year.

Prices of rice bran oil and washed cotton seed oil were also lower than 1997 rates, the data said.

Sea has also demanded immediate action by the government notwithstanding the fact that the model code of conduct is in force.

``By the time a new government takes over and decides on the issue, it will be too late,'' Sea president Ajay Tandon said last week.