UPDATE 1-India cuts soyoil import duty-trade secretary

NEW DELHI, March 19 (Reuters) - India has cut import duty on soyoil to keep domestic prices stable, Trade Secretary G.K. Pillai told reporters on Thursday.

Pillai did not give details but traders said import tax on crude soyoil, currently at 20 percent, may be totally withdrawn like on crude palm oil that is imported duty free.

Details of the cut in import duty would be available after the government issues a formal statement.

India had scrapped import duties on crude edible oils a year ago when domestic prices were surging, but it again levied a 20 percent tax on crude soyoil in November, which led to a higher palm oil imports.

"If import duty on soyoil is withdrawn, it will bring all crude oil imports on an equal footing," said Sandeep Bajoria, chief executive of Mumbai-based trading firm Sunvin Group.

He said this would increase soyoil imports, hurting domestic rapeseed growers as local prices would fall.

The government is keen to ensure steady supplies and moderate prices ahead of general elections scheduled to be held in April and May, which analysts say was a key factor in cutting the import tax.

"The government wants to ensure adequate supplies so that prices do not rise ahead of elections," Naveen Kumar, a Delhi-based independent edible oil analyst said. (Reporting by Manoj Kumar and Ratnajyoti Dutta; Editing by Ranjit Gangadharan)