Groundnut mills, government fight on price policy

With edible groundnut oil prices slipping slightly, from Rs 1,060 per 15 kilograms tin to Rs1,030, mill owners are up in arms against the price fixation policy proposed by the Gujarat State Civil Supplies Corporation (GSCSC).

As edible groundnut oil prices touched Rs1,000 for 15 kilograms tin state government officials and edible oil millers tried to work out an amicable solution.

Following unseasonal showers, which is considered good for groundnuts sown for the summer harvest, the state government had initiated a process on the unprocessed inventories.

In the first week of February, the immediate outcome was seen when edible groundnut oil prices soared Rs1,060 and since then kept on fluctuating between Rs1,040 and Rs1,030. Currently, groundnut oil is traded at Rs1,030 per 15 kg tin.

Edible oil millers under the aegis of the Saurasthra Oil Millers' Association have protested the government's decision to conduct raids on the premises of edible oil millers.

Soma president Ukabhai Patel also threatened to close operations if harassment by government officials continues. The Bharatiya Kishan Sangh also supported Soma and lambasted the government's proposed price fixation policy.

Lakshman Patoliya, one of the BKS activists, said, "Instead of fixing the prices of edible groundnut oil, the government should chalk out a policy to encourage farmers to cultivate more groundnuts."

Khimji Gojiya, vice-president of Soma, said, "Usually, India produces and consumes 12 lakh million tonne edible groundnut oil, but this year due to non-availability of groundnuts production is likely to scale hardly 3-4 lakh million tonne, creating deficit of at least 8-9 lakh million tonne."

Government officials said that to check the rising prices of edible groundnut oil, the government would continue monitoring the unprocessed stock lying with oil millers.

S K Nanda, principal secretary, food supplies department, said, "We would now take the task to see that no stock of groundnut seeds is unprocessed and lying as inventory in the premises of edible oil mills."