With the use of groundnut oil coming down in the domestic market, the Saurashtra Oil Millers Association (SOMA) is planning to take up some "aggressive steps" to pursue removal of export ban on groundnut oil. More than 1,200 oil millers from across Gujarat will meet during the upcoming Annual General Meeting (AGM) of SOMA at Rajkot.
"We are considering to takes some strong steps if government will not give positive reply to remove groundnut oil export ban this season. But first, we will meet the government to discuss it very soon," said Ukabhai Patel, President of SOMA.
SOMA's annual general meeting will be held on Sunday at Rajkot. in which over 1,200 oil millers are expected to take part in. In the upcoming AGM, SOMA will also provide production estimate of groundnut and groundnut oil for the new season.
"Government should understand that use of groundnut oil is coming down in the country so there is no meaning to continue the export ban on it since it hurts the business of mills," said Patel.
According to Patel, the groundnut production in the Gujarat is estimated to be around 15 to 20 lakh tonnes in the year 2010-11 as good monsoon increased the yield.
To cap the increasing groundnut oil price, government had banned the export of groundnut oil. After this oil price had come down but government did not remove the ban. During the last month groundnut oil prices reached to an all time high level of Rs 1,570-1,575 per 15 kg new tin and now it is running on Rs 1,465-1,470 per tin.The new crop of groundnut has started to arrive in the market. About 25,000-30,000 bags of groundnut have been arriving every day in various mandis of Gujarat.