Sources said due to steep decline of vegetable oil prices in international and domestic markets, the performance of second quarter was adversely affected while the fall in price of palm oil prices aggrevated the situation.

Net loss during the first half amounted to Rs 7.7 crore against a net profit of Rs 1.5 crore last year.

Net sales came down to Rs 131.60 crore from Rs 284.70 crore in the second quarter and stood at Rs 271.50 crore (Rs 394.50 crore) in the first half of 1999-2000.

The company had sold substantial quantitities of imported RBD palmolein with deliveries ranging between June '99 and September '99 and due to the reduction in prices domestic traders refused to lift their orders. To mitigate the situation, the company had arrived at a settlement with these traders and also worked out international purchase contracts.

The total impact of these extraordinary factors was about Rs 7.2 crore, contributing to the loss.