Edible oils prices in the Indian market have crashed due to large
imports by multuinational trading houses.
India accounts for 9.3 per cent of world oilseed production. It has
the world's fourth largest edible oil economy. Yet, about 43 per cent
of edible oil available in India is imported. In 1999, India ranked as
the world's largest importer of edible oils, displacing China. The
bulk of edible oil India imports under the Open General Licence (OGL)
is RBD palmolein of Malaysian and Indonesian origin.
India has approximately 300 crude edible oil refining units, 60-70 per
cent of which are small. Unlike the bigger refiners, the small ones
are unable to import huge quantities of crude either due to their low
capacity or lack of financial resources, and may be forced to close
down or sell out to the bigger ones in the foreseeable future.