“I will not be surprised if India's imports actually exceed the estimate of 8.65 million tonnes,” announced Dorab E Mistry, director, Godrej International, while talking about revisited economic downturn and effect on palm oil trade at POTS - India by MPOC on December 15, 2009, in New Delhi. 
According to Mr Mistry, there are 3 reasons for what he said. They are:  First, Indian farmers are at present very reluctant sellers of oilseed. Crushers in India are facing a very tough time as they are sandwiched between historically high oilseed prices and a strong Rupee. The strong Rupee keeps the local price of imported oil under check and also restrains the export price of meal.

Second, the sky high price in India of pulses like dal makes oilseeds like groundnut and soybean very attractive for direct human consumption.

Third, and most important, India can expect per capita consumption to rise by 4 to 5% this year, despite the big jump already registered last year. The Indian economy continues to grow strongly, per capita incomes are rising and per capita consumption must rise. The Indian per capita income has now crossed the threshold of $1000 and this is often regarded as the take off stage for consumption and growth. Besides, as prices of all food products are rising, the Indian consumer will find vegetable oil very attractive in price. “Therefore, it will not surprise me if consumption registers a strong growth in the current year,” he said.

“The Indian government is rightly concerned about food price inflation... I would submit that the weightage given to different food items in the calculation of price indices needs to be brought up to date. Groundnut oil is now an exotic oil and pure mustard oil also has a declining share. Due and appropriate weightage must be given to RBD palmolein and a new category of blended cooking oil added. These changes will show that cooking oil in 2009 is one of the very few products that are actually cheaper than last year.