Moreover, it will also affect large sections of less privileged people who buy their edible oil requirement on daily basis, affected traders say.The machinery required for packing edible oil is a costly affair, so the ghani operators and traders would be unable to invest thereby would be forced to close down their units, they add.

Packing machinery will cost anywhere between Rs 30,000 and Rs 15 lakh depending on whether it is manual or automatic and also on the speed and quantum of oil to be packed.

It will also add to the cost of the final product much to the disadvantage of the weaker sections of the society.

It is estimated that in the retail market the packaging cost would be between Rs 3 and Rs 40 depending on the quantity and the type of pack. For instance, if coconut oil costs Rs 60 per kg when sold in loose, it would cost between Rs 63 and 75 per kg when packed in pouches, plastic bottles or cans. At present, of the total 8 million tonnes of edible oil consumed in the country, almost 52 per cent of the oils are sold in loose form.

The per capita consumption of edible oils in the country would be around 10 kg, sources say. The mandatory packaging rule, it may be recalled was promulgated by the union government through the Edible Oils Packaging (Regulation) Order, 1998 in the wake of deaths from dropsy caused by adulteration of mustard oil with argemone oil in Delhi sometime last year.

The order mandates that edible oils, including mustard oil, will be allowed to sold only in packed form, unless specifically exempted by the concerned state governments. Most state governments like Tamil Nadu had initially granted exemptions but these have now expired forcing the traders not to sell in loose.