``Huge imports of refined palmolein aided by depressed global prices are likely to further keep the domestic prices under pressure,'' Manshukbhai Patel of Velani traders said.

Patel said the festive season this year had failed to boost the prices as availability of oil was in excess of demand with farmers who had held back substantial stocks of mustard/rapeseed and soyabean so far chosing to unload them during the season.

While the industry has estimated India's import of edible oils during 1998-99 oil year (November-October) at 45-46 lakh tonnes, the government has put it at around 36 lakh tonnes way above the 22 lakh tonnes imported during the previous year.

``International prices have already reached the bottom level and if the inflation continues to move up, domestic prices should move up from the first quarter of 2000,'' SK Chadha of Vanaspati Manufacturers' Association (VMA) told PTI.

The depressed edible oil prices are despite an estimated 12 per cent fall in soyabean production and a substantial decline in groundnut production during 1999-2000 kharif season due to scanty rainfalls in major oilseed growing areas like Madhya Pradesh and parts of Maharashtra and Andhra Pradesh.

Patel said the depressing price scenario had forced traders to keep away from the international market and added that domestic processors too were finding it difficult to operate under the prevailing prices.

``The decline in domestic prices is having its consequences on soyabean cultivators as processors are unwilling to purchase seeds at even the minimum support price (MSP) of Rs 825 per quintal,'' he said.

Farmers are forced to sell soyabean at prices ranging from Rs 725-750 a quintal as the market intervention of government procurement agency Nafed was `insignificant,' Chadha said.

Patel said signs of recovery in international prices of soymeals would not lead to increased processing because of lower oil prices.