Industry sources told The Financial Express that the state government has not made its mind public on the issue so far. "Thus has crated utter confusion in the industry as there are rumours that major states in North India have decided to ban the sale of unpacked edible oil from December 15", sources in the industry said. The new regulation inter alia bans the sale of all unbranded edible oil products with effect from December 15.

Thecentral government has come out with the new packaging norms following the death of scores of people in North India after consuming adulterated ground nut oil a couple of months back.

The ministry of civil supplies has sought the reaction from all the state governments regarding the implementation of the issue as the Centre feel it is the responsibility of state governments to ensure the strict compliance of the law. The centre has written in September and later in November seeking the view of all state governments on the issue.

However, Kerala government has been turning a blind eye to the issue and not so far responded to the centre's query. It is reported that states like Maharashtra and Andra Pradesh has already swing into action to ensure the strict compliance of the law.

Sources said as per the provisions of the law only packed oil with certified quality can be sold in the market. To top it all, millers who have registered themselves with a designated registration authority can only sell theirproducts in the market. To ensure the strict compliance with the new standards, each state government has to set up quality approval labs in all districts. However, the 30 odd quality checking labs in Kerala is hardly sufficient and equipped to take up this enormous job, a industry source pointed out. He said not all the districts in Kerala is equipped with such sophisticated labs. He also said that Kerala government has not yet issued any direction on the registration procedures to be adopted by the millers.

The new norms have also put the industry in a catch 22 situation as on the one hand there is the threat of ban to be imposed by other states if the industry fail to adopt the new standards. On the other hand out of the 1500 odd coconut oil mills in Kerala hardly 80 are currently producing branded coconut oil. Already 400 or so units have closed down their operation as they could no longer remain in the business following the sharp fall in prices. "A majority of the units will have to close down if thenew norms are implemented by the State Government", trade sources said.

Meanwhile, a fresh bout of raw have been erupted in Cochin Oil Merchants' Association following the associations decision to change the norms for fixing copra prices. So far copra prices in Kochi, which is considered as the benchmark price, is fixed by taking 62.5 per cent of the ruling coconut oil price and 35 per cent price of of expeller.

However, the association has recently changed the norms by reducing the weightage if coconut oil price to 60 per cent. This has led to an increase in the coconut oil price and a simultaneous decline in the prices of copra. A section of the traders have, however, dubbed the association's decision as favouritism to some vested interest.