MUMBAI (Dow Jones)--Indian edible oil prices during the week ended Friday
rose tracking gains in overseas markets and supply tightness in physical
markets.

  Soybean prices in the international markets soared on supply concerns in the
U.S. due to adverse weather conditions.

  In India, the price of local edible oils are directly impacted by
international markets as the country imports nearly half of its annual edible
oil demand.

  It buys soyoil from Argentina and Brazil and palm oil from Malaysia and
Indonesia.

  Locally too, supply concerns continue to buoy prices of edible oils despite
the government's plan to sell imported oil at subsidized rates to lower income
households.

  "Processing of soybean in the local markets in India is very low currently as
stocks are limited. This has pressured availability of soyoil in the market,"
said a trader-based in the central Indian province of Madhya Pradesh.

  Soybean is the main oilseed grown in India, sowing of which is currently
underway in the country.

  Thursday, state-run trading house PEC Ltd. floated a tender to import 24,000
metric tons of crude degummed soyoil as part of the government's plan to import
1 million tons of edible oil to improve supply in local markets.

  "This tender limited gains in the edible oil complex," said the trader.

  Meanwhile, the area under oilseed cultivation during June 1-July 3 was up at
5 million hectares compared with 4.95 million hectares a year ago, latest farm
ministry data showed.

  Sowing of soybean was carried out in 2.48 million hectares, up from 2.21
million hectares a year ago, while groundnut was sown in 2.07 million hectares,
up from 1.93 million tons.

  Local refined soyoil was at INR67,500/ton Friday, up from INR67,000/ton a
week earlier.

  Refined, bleached and deodorized palm olein was at INR58,300/ton, up from
INR57,600/ton.