"Soft oils are, as it is, cheaper in the global markets," Govindlal Patel, president of the Central Organisation for Oil Industry and Trade (COOIT), said.

"The devaluation will make Brazilian supplies cheaper and can put pressure on palmolein imports from Malaysia," he added.

Brazil's central bank on Wednesday widened its real-dollar exchange rate band, effectively devaluing its currency by more than eight percent.

The move added to selling pressure on world commodity markets amid fears that cheaper prices for Brazil's key exports like coffee and soybeans would swell supplies on global markets.

Hardest hit were soybean prices at the Chicago Board of Trade which fell as much as 10 cents a bushel in early trading on Wednesday.

India imports if soft oils mainly from Argentina, the United States and Brazil. Palm olein purchases are mainly from Malaysia.

Some trade officials said India had until now been making the bulk of its soft oils purchases from Argentina and the United States and a smaller amount from Brazil.

"But the devaluation will throw open the United States and Argentina to more competition with Brazil as far as sales to India are concerned," said Navinbhai Shah, president of the Bombay Oilseeds and Oil Exchange Ltd.

"Palm olein imports to India are already under pressure because of comparatively higher prices. The Brazilian move will make things tough for the Malaysian exporters to India," he added.

The Indian edible oil imports to surge to 220,000 tonnes in January 1999 from 79,000 tonnes a year earlier. more than 60 percent would be soft oils," SEAI executive director BV Mehta said. Soft oils have accounted for a far lower proportion of India's oils

He said the landed cost of palm olein in India was currently about $670 a tonne, while the landed cost of crude soft oils -- which had become cheaper on good crop expectations in the United States and Argentina -- was $590 per tonne.

"With the devaluation, our imports of soft oils from Brazil will definitely rise as it will become cheaper," Mehta said.

Indian oil trade officials said the devaluation is expected put further downward pressure on the depressed global edible oils market.

"Brazil is a key supplier of soybean oil into the global market," Shah said. "The devaluation will certainly impact world edible oil prices. The trend could influence Indian prices also."

India imported about 2.08 million tonnes of edible oil in 1997/98 (November-October) compared with 1.75 million tonnes in 1996/97.