Price of groundnut oil tin above Rs 2000, this is what the minister has to say about it (Video)

Gandhinagar, 31 March, 2012

Groundnut oil prices have seen a spurt in the last six months in Gujarat with price per tin (15 kg) reaching as high as Rs 2030.

Ground nut oil millers in Saurashtra say that the prices have increased mainly due to millers have no stock of groundnut for crushing as most of the groundnut is absorbed in exports. The oil millers say that most of the summer groundnut crop had been consumed by exporters due to high export demand mainly from China.

The oil millers say that all the groundnut arrival mostly gets consumed by the groundnut traders for export. The prices they offer to the farmers in the open market are not viable for millers.

They say, instead of producing oil, most of the millers closed their mills to join trading of groundnut which yields more money these days.

While opposition Congress has lately started attacking the government over increases in groundnut oil prices, senior minister Shri Narottam Patel who holds Civil supply department in Chief Minister Narendra Modi’s ministry in his statement(in the video above) says that it is the central government which is responsible for increase in groundnut oil priced.

The minister said that due to ban on cotton export imposed by central government, farmers stopped bringing cotton to market yards. This sparked shortage of cottonseed oil, resulting into price rice.

About groundnut oil, the minister said that earlier 100% crop was consumed domestically for oil production, however in this season, only 30% produce has gone to oil mills, while 70% to export market. This has resulted into increase of price.

The minister blamed weaker Rupee against dollar responsible for increase in palm oil prices.

It is interesting to note that last year, Gujarat had witnessed not-so-well rain, and therefore coming season of summer is likely to offer lower volume of groundnut. In such case, prices could go further up.