This is in view of about 68,000 tonnes of palmolein imported by publc sector State Trading Corporation (STC) for distribution through public distribution systems (PDS), lying at various ports without being lifted by state governments.

The stocks, considered adequate for PDS supplies, and high prices have discouraged STC from buying any stocks other than the 98,000 tonnes bought between July and September this year, the sources in the food and commerce ministry said.

"We have not contracted any consignment as prices have escalated," they said.

STC had bought 98,000 tonnes of palmolein from the global market after government asked it to import 1.5 lakh tonnes for PDS supplies.

The union cabinet has asked STC to speed up procurement of the remaining 52,000 tonnes to tide over any edibleoil crisis following a ban on use of mustard oil.

In view of a spurt in global palmolein prices following the cabinet decision, the government gave STC the flexibility to purchase other soft oils.

Though prices of other soft oils rule lower than palmolein, their freight charges make imports a costly proposition.

Palmolein makes up over 80 per cent of India's edible oil imports as it is cheaper than other oils. There was an initial ban on palmolein exports by Indonesia, which then lifted the ban and imposed a 40 per cent export duty.

The government, while asking STC to speed up edible oil purchase from global market had said the imported commodity should reach India by this month-end.

"We have not contracted any consignment. But there should no problem as far as supply for PDS is concerned since we have enough stocks," the official said.

All the 98,000 tonnes contracted by STC had arrived at various ports but only a few states had come forward to lift the stocks, the official said.

"Hardly30,000 tonnes have been lifted by the state governments," the official said, adding with 68,000 tonnes of palmolein stocks there would be no problem for delivery until the festival season got over.

India faced edible oil supply problem since this season (November 1997-October 1998) as only 63 lakh tonnes were available against a demand of 78 lakh tonnes.

The gap has been bridged through imports, by government and private traders.