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State urged to refrain from imposing restrictions on food stuffs

Staff Reporter

Government told to take cue from recent market trends

BERHAMPUR: There has been a sudden fall in edible oil prices despite inflationary trend of prices of other goods in the market.

The traders urged the State government to take note of this phenomenon and refrain from imposing restrictions regarding storage of essential foodstuffs in the name of checking price rise.

The State Government had come up with a gazette notification of the ‘Orissa Foodstuffs (licensing and storage) Control order 2008 in June whose implementation had to be deferred due to protest of trading community.

As per the notification, traders dealing in edible oil, cereals and pulses had to obtain licenses and their storage capacity of these items was to be restricted.

Price rise

The president of the Ganjam Chamber of Commerce, C. Ravindranath said the State government had brought in this now deferred order in the name of checking hoarding and price rise. But the present situation of edible oil prices in the market should be an eye opener for the government, he said. He also added that the government had procured palm oil stock at the rate of Rs. 65 per litre a few months back for public distribution at subsidised price. But market price of same oil is now Rs. 44 per litre.

The prices of edible oils have gone down by 30 to 35 per cent in the market.

The 15 litre can of rice bran oil which was costing Rs. 1,040 in July is now sold at Rs. 690.

Similarly the price of 15 litre can of palmolein oil has come down from Rs. 980 to Rs. 620.

Market fluctuations

Mr. Ravindranath said in the time of globalisation global trends affect market fluctuations which can not be checked by archaic moves like licensing and control.

According to him recent fall in edible oil prices is related to fall in petroleum price in international market as a large amount of edible oil was being used for bio-fuel as replacement of petroleum.

He also added that price of several other edible oils are expected to fall further during the winter after the harvest of oil seeds.

The Ganjam Chamber of Commerce requested the financial think tank of the State government to take note of the reasons behind recent market trends and refrain from re-imposing license raj in the State.

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