Despite the Intervention of the Gujarat Government in the Edible oil Market, Consumers Are Not Getting Relief in Prices

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The Gujarat government had last week announced that it would make available a one-liter pack of groundnut oil at 50 per cent subsidized rates for Rs 100. Still, edible oil prices are showing an upward trend and people are not getting any relief.

On Tuesday, the price of a 17-litre groundnut oil tin was reported at Rs 2,850, the highest so far in this calendar year. Palm oil 17 liter tin is trading at Rs 2,050.

The reason behind this is that most of the oil processing units are closed, as there is no stock of groundnut in the market and the import of palm crude oil was opened after a short break.

President of Saurashtra Oil Mills Association Kishore Viradia said that due to festive season demand the retail market is high, which is pushing up the prices.

On the other hand, the state government is going to distribute 71 lakh liters of groundnut oil to the ration card holders under the National Food Security.

Gujarat Food and Civil Supplies Corporation director Tushar Dholakia said the supplies are on and the government aims to distribute to the poor people before Gokulashtami.

Dholakia said that the state government was procuring 1.42 crore liters of groundnut oil from the open market, the rest 71 lakh liters would be distributed on the eve of Diwali.

Viradia said, “This may push up the prices, as the state has not crushed oil in its groundnut stock, it is buying oil from the retail market.

Its intervention is limited to 71 lakh households, rest of the common people or low income. The clusters are left at the mercy of the open market and hence the state government’s announcement has little impact on the market prices.”

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