According to civil supplies minister Jaspal Singh, the detention of two influential oil millers in Rajkot district under the Prevention of Black Market (PBM) Act last Wednesday, and the detection of Rs 2.40-crore scam in supplying 40,000 (15-kg) tins for the mid-day meal scheme by Gujcomasol, a co-operative body, earlier should have a singular effect on erring millers and traders.

In an interview with The Financial Express,

Singh said the state had received a tip-off earlier about rampant adulteration by oil mills in the Saurashta region but was waiting for evidence.

On August 29, the state administration had raided oil mills at Dhoraji and Upleta, two oil important centres in Rajkot district, and had collected samples of oil being sold as groundnut oil. On analysis at the government food testinglaboratory, the samples were found to contain up to 30 per cent palmolein and castor.

On preliminary investigation, Kiran Mills in Dhoraji was found to have sold over 11 lakh kg of adulterated oil worth Rs 5.50 crore and Sanjay Mills in Upleta, 4.50 lakh kg worth Rs 2.30 crore. "No oil miller or trader has a right to sell adulterated oil, containing 30 to 40 per cent castor oil or palmolein at the price of groundnut oil, when its ruling market price was Rs 65 per kg," he said.

While Kalyan Gokaldas Patel of Dhoraji and Vashram Kurji Patel of Upleta, have been sent to Baroda and Bhuj jails respectively, arrest warrants have been issued against Nathalal Vaghasia and Haresh Vashrani, who are still absconding. Kalyan Gokuldas was also detained earlier under the PBM Act three years ago.

Referring to reports of differences between him and state chief minister Keshubhai Patel over the issue of `tackling the powerful oil lobby', Singh said, "Over 48 hours have passed since the hoarders have been sent to jail.They are big and influential. And they could not be touched so far. I don't think even Keshubhai is in favour of allowing hoarding or adulteration in his state."

"Since Gujarat produces one-fourth of the country's groundnut oil which is twice as much as its own needs," he said, "it does not mean oil millers and traders could be given a free hand to play mischief and destabilise the state."

The minister said that co-operative institutions, which once played a major role in keeping oil prices under control, were in a bad shape now. Several units of Grofed are closed down. They now want government assistance to the tune of Rs 80 crore to revive their oilseed crushing operation.

When asked as to what happened to National Dairy Development Board (NDDB) move to sell its double refined rapeseed oil to the Gujarat government at the former's cost price, Singh said, the plan did not materialise so far.

In such a situation, he said, the only answer to tackle the issue is for the state to build its own bufferstock to last till the next harvest season. There was nothing wrong in importing oil either. Even the centre imports oilseeds or oil in the face of domestic shortfall by about 15 lakh tonnes.

"We have imported about 1.5 lakh tonnes of palmolein in the outgoing season under OGL. We may import again, if required, to keep prices under control till Diwali festival."

However, he said, the palmolein could only be sold through the public distribution system (PDS), reaching out to 33 lakh ration card-holders, comprising about 1.50 crore people living below the poverty line in the state. "We procure the oil at around Rs 42 per kg and sell it at a subsidised rate of Rs 33.50.

Meanwhile, he said, the department has decided to sell palmolein in 1-litre pouches through 15,000 fair price shops (FPS). It should dissuade the FPS owners to siphon off the cheaper oil to `open market' or for adulteration. The effort would be too cumbersome for small margin of profit in each pouch. In the prevailing system, FPS owners areasked to lift 180 kg barrels which many of them being poor could not afford to do.