GANDHINAGAR, Dec 3: The way the Bharatiya Janata Party (BJP) government in Gujarat has lifted the restriction on the export of groundnut oil to other states reeks of opportunism. Until the Bharuch Lok Sabha by-election, the government was defending the restriction in the name of consumer interest. After the BJP has won the Bharuch seat, the restriction has been lifted.Naturally, therefore, opposition parties are accusing the government of bowing to `telia rajas' -- the oil millers of Saurashtra who had allegedly financed the BJP election campaign earlier this year.
But the stance of the opposition parties is no less opportunistic; for, their own men in Saurashtra backed the farmers and millers' campaign against the restriction.
While the political parties are playing their usual game, the consumer is in for another fleecing. The country is going to have ``a substantial shortfall'' of edible oils this year. Worse, the imports may become costly because the ``palmolein crop in Indonesia, Malaysia and the Philippines hasn't been good, thanks to the El Nino effect'', said Harjivan Suthar, an economist and expert in oil trade.
The government decision is based on the recommendation of a Cabinet sub-committee, headed by Industry Minister Suresh Mehta. There was no need for any restriction because ``plenty of oil and groundnut is available in the state at reasonable prices'', Mehta explained.
But the markets have been flush with the crop for the last two months because it is the groundnut season. All this while, the millers had been arguing that the restriction was anachronistic in the era of globalisation and they had the right to sell oil in neighbouring states, where the price of a 15 kg tin was about Rs 50 higher.
However, Food & Civil Supplies Minister Jaspal Singh was of the view that oil could not be allowed to ``flow out of the state'' to avoid a repetition of the price spiral which took place in the last lean season. So a condition was laid down that traders must obtain permission of the district collectors 48 hours in advance before moving out stocks.
The sub-committee held many meetings before the Bharuch election, but did not consider it advisable to remove the condition. Even when farmers came out in support of the millers and boycotted market yards for three days last month, Agriculture Minister Nitin Patel said the government had to ``watch the consumers' interests''. Jaspal Singh quoted figures to show that farmers and millers were getting far better returns than last year.
Naturally, therefore, the opposition parties are crying foul. Leader of Opposition Amarsinh Chaudhary and RJP leader Shankersinh Vaghela accused the BJP government of ``succumbing to the pressure'' of the `telia rajas'. Both said that while the millers will make a killing, the consumers will have to pay a very high price for oil in the lean season.
Mehta denied that the government acted under ``any kind of pressure''. But the fact is that many ministers and BJP MLAs of Saurashtra had been lobbying on behalf of millers. After the farmers came out against the restriction, the pressure on the government further increased.
But RJP leader Vithal Radadia and Congress leader Manubhai Kotadia were also active in the campaign against the restriction. Congress spokesman Hasmukh Patel, asked why the party was speaking in two voices, candidly said: ``It is oil politics''.
As to how the interests of consumers could be protected, Patel said, ``It is for the government to find out.'' Vaghela said it could be done by a system of checks and balances. ``When we were in government, we had also lifted restrictions, but there was no increase in prices,'' he said.
Mehta said that the restriction would be reimposed if prices increased. The government is also talking of creating a buffer stock of 30,000 tonnes for use in the lean season. But, in the opinion of Suthar, it would only add to the problem by removing a large quantity from the market.
Suthar said while the demand could be met in the short run by imports, a lasting solution could be found by reducing the farmers' dependence on rain, and by developing new techniques and high-yielding varieties.
``Unfortunately, successive governments have played politics of control and regulation, but done little in this direction,'' he said.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.