Groundnut Oil Likely To Rise By Rs 25 Per 15 kg

Rajkot: Prices of edible groundnut oil may go up further by Rs 10-25 per 15-kg tin in the Gujarat market. The reduction in duty on imported edible oil was unlikely to affect the uptrend, sources said. Although edible groundnut oil has already crossed the Rs 1,000 per 15 kg level, Gujarat State Civil Supplies Department has failed to check the rally even after raiding the premises of edible oil mills suspected of manipulation using the veto of the Essential Commodities Act, 1977.
Thirty-four millers attending the edible oil millers' meet in Rajkot on January 27, under the aegis of Saurashtra Oil Millers Association (SOMA), arrived at a consensus that they would not buckle under any possible pressure tactics the government might employ. Of the 650 edible oil processing units functional in the Saurashtra-Kutch region, 500 have already been shut down. So only the remaining 150 are operational, as no crop of groundnut used as raw material in our manufacturing process is available in the market, because of excessive cotton cultivation in this season. If this (more shutdown) happens, it will only add to government worries, with the prices of edible groundnut oil likely to skyrocket. Meanwhile, government officials, in a bid to control the damage of ever-flaring edible oil prices, said they would continue to raid edible oil millers' premises. To take stock of the situation the exact unprocessed stock lying with some edible oil millers in question, we have started extensive search operations and are doing the same in accordance with the legal provisions, said S K Nanda, principal secretary, Food & Civil Supplies Department. However, edible oil millers do not agree with the move. SOMA Secretary Samir Shah said: Government officials cannot seize our stocks using powers vide Essential Commodities Act of 1977 or 1981.