Adequate availability of edible oils due to strong imports by private traders and sharp fall in international prices might keep the demand for edible oils from states under the subsidised scheme flat at September?s level. In September, Andhra Pradesh, the first state to launch the subsidised edible oils scheme, has demanded around 20,750 tonne of oils from the central pool, the highest so far, a senior government official told FE adding that Himachal Pradesh has ordered the lowest of just 1,400 tonne.

However, weak demand from states for subsidised edible oils, might not push up edible oil prices in the country during the peak festival as continuing imports of edible oils under the subsidised scheme would cap any spike in prices. ?Our imports will continue, but the states? demand might remain flat in the coming month as private traders have imported around 4.19 million tonne of edible oils during the first 10 months of the oil year that ends in October, 21% more than last year. This should take care of increased demand during festivals capping demand from states for oils under the subsidised scheme,? the official added.

According to a recent data released by the Solvent Extractors? Association of India (SEA), the country?s edible oil imports in the November-August period was estimated to be around 4.19 million tonne, up by 21% from last year. Sources said that in September, apart from Andhra Pradesh and Himachal Pradesh, Maharashtra demanded 18,200 tonne of edible oils under the subsidised scheme from the central pool, Tamil Nadu demanded 15,500 tonne, Chattisgarh 4,500 tonne, Orissa 6,800 tonne, West Bengal 4,000 tonne and Karnataka 6,000 tonne.

The subsidised edible-oil scheme provides for distribution of 1 million tonne of imported edible oil during 2008-09 at a subsidy of Rs 15 per kg through the public distribution system (PDS). The edible oil is being provided at the rate of 1 kg per ration card per month. Meanwhile, according to official sources, crude palm oil prices have fallen from around $1,275 per tonne in March 2008 to a current $725 per tonne.

Crude soyoil prices have dropped by almost 42% in the international markets in the last six months.