RAJKOT, Oct 15: The assurance given by Roads & Building Minister Savjibhai Korat to lift all curbs on export of groundnut oil once again underlines the strength of the powerful oil millers' lobby of the Saurashtra region which has the reputation of bringing any government to its knees.As a fall-out of this development, groundnut oil prices in the state are expected to skyrocket once again.
Market observers and retailers believe that lifting of the curbs would lead to an artificial scarcity, as the millers will be free to export large quantities of groundnut oil to Maharashtra and Madhya Pradesh, where the price is about Rs 610 per 10 kgs, against Rs 500 per 10 kgs in Gujarat.
``The price will go up to anywhere between Rs 56 to Rs 60 per kg in November,'' said a retailer of leading oil brands in Rajkot. The prophecy, if it comes true, will mean prices hitting a record high at a time when, normally, these should be the lowest, given the fact that arrival of the fresh groundnut crop is at its peak.
The strike in marketyards earlier this week, when no auctions of groundnut were held, was a carefully engineered ploy to compel the government to lift the curbs.
Interestingly, Korat promised lifting of the curbs, although the matter falls in the domain of Civil Supplies Minister Jaspal Singh. Government sources said Jaspal Singh has objected to Korat's action.
Singh denies that the government had imposed any restrictions. ``What we have done is that the exporters should file a declaration with the collector, mentioning the quantity that they want to export'', he said, and explained that this had been done to check tax evasion and to keep a watch on how much stocks were going out. ``After all, we have to watch the interests of consumers also,'' he said.
Naturally, therefore, the single largest group which will benefit from lifting of the curbs (or regulatory measure, as Jaspal Singh calls it) is the oil millers and traders, although the strike was supposed to help farmers get higher prices. In fact, even now, large quantities are sold outside the state by the millers and traders in spite of the much-talked-about curbs, said a civil supplies officer.
The biggest loser is the consumer. President of the Saurashtra Oil Millers Association (SOMA) Ukabhai Patel, agrees, ``Lifting of curbs means more exports, which will automatically lead to a price rise here''.
Patel said groundnut oil prices per kg will be around Rs 56 or even more after Diwali.
Even Shyamji Khunt, president of Rajkot Marketing Yard Shyamji, who organised the strike, admitted that oil millers supported the strike to advance their own interest. But he was hopeful that lifting of export curbs would lead to an increase in demand for groundnut and better prices for farmers.
Probably aware of the consequences of lifting the curbs, the state government has sought time till October 31, saving the people from a costly Diwali.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.