Policy decision regarding 10 percent duty differential between crude and refind oils has resulted in larger import of non-refined oils over refined oils. During November 2004 to October 2005 - import of edible oil has increased by 15 per cent to 50.42 Lakh MTs compared to 43.96 lakh MTs during same period last season.

During the same period, India imported 30 lakh tonnes of palm products and 20.4 lakh tonnes of soft oils, mainly soyabean oil, 2.0 lakh tonnes of vanaspati and 4.0 lakh tonnes of non-edible oil. Indonesia and Malaysia are favourite source of Palm Oil while Argentina and Brazil account for degummed soybean oil

It should be noted that increase in share of non-refined oil has helped domestic solvent extracton industry through improved availability of raw materials and increased capacity utilisation. Total import of non-edible oil during the period was reported at 4,09,482 tonnes compared to 2,35,163 tonnes during the same period of last season, up by 74 per cent.