``The existing import duty of 45 per cent on import is ridiculously high. This will force import of Malaysian palmolein than oilseeds, putting pressure on domestic prices,''Godrej, doyen of Indian edible oil industry told PTI.

A cut in oilseeds import duty could ensure adequate availability of edible oils in domestic market at affordable prices, he said.

Conditions specified by government for the oilseed import were also not easy to meet, Godrej said.

Government had on October 15 notified import of soyabean and sunflower under ogl and raw rice bran under special import licence scheme, following a long-standing demand from the processing industry.

While import of soyabean has been allowed in split and cracked form, sunflower and rapeseeds import are subject to quarantineconditions.

``All the oilseeds without any conditions should have been brought under Open General Licence (OGL) scheme with zero import duty to provide leverage to importers who largely depend on malaysian palmolein,''Godrej said.

Godrej said at zero import duty indian edible oil processors as well as manufacturers could source their raw material requirements from some of the Latin American countries, including Argentina and Brazil.

``With the duty remaining so high, domestic demands will be continued to be met through imports and I do not see any fall in import of oils,''he said.

India had imported about 20 lakh tonnes of edile oil during the last year, due to the shortage in domestic oilseeds output.

Godrej said the country might not witness any increase in the oilseed output during the 1998-99 (October-November) oil year and this would reflect on international prices.

The fears that reduction in import duty would hurt the domestic growers was absolutely baseless as they had always been alwaysassured of remunerative prices, he said.

India had for a brief between 1977 to 1979 allowed duty free import of oilseeds under OGL.

Earlier, the food and civil supplies ministry had asked the commerce ministry to reduce import duty on oilseeds to make imports more viable.

However, commerce ministry, the nodal ministry had ruled out any downward revision saying it would hurt the interest of the domestic oilseed growers.