Manufacturers say that there will not be any problem in following the government's orders if the units are allowed to maintain the mandated percentage of use of domestic oil on a yearly basis instead of a monthly basis and the imposition at factory levels is removed.

June to November is a lean season for oilseed production and not a single edible oil crop comes in the market at that time, say manufacturers. Ground nut, rapeseed and mustard oil are not used in the manufacture of vanaspati because of their high prices. The quantity of domestic rice bran oil, sun flower oil and soya bean oil available in the lean season is very low thus making it difficult for vanaspati units to fulfill the imposed obligation. In the flush season, however, the scenario is different. Because of abundant availability of domestic edible oil in the market, vanaspati units increase their consumption of the same.

According to data published by the directorate of vanaspati, oils and fats, between October 1998 and May 1999, units in the country used about 57.6 per cent domestic oil in the manufacture of vanaspati. About 24.4 per cent domestic soya bean oil was used while use of domestic ricebran oil, cottonseed oil and mustard oil was 15.3 per cent, 6.6 per cent and 8.3 per cent respectively.

As in the flush season the industry has been using a higher percentage of domestic edible oil than the mandated level, it can easily maintain the 25 per cent level on a yearly basis, units claim. However, they add, the imposition of the mandatory use order on a monthly basis is being unfair to the industry.

The Vanaspati Manufacturers' Association of India has already made a representation to the department of food and public distribution to postpone the implementation of the scheme for six months. The industry feels that it will be difficult to meet the domestic edible oil stipulation this season also because of lower oilseed production due to drought in Western parts of the country. Another point which manufacturers want to highlight is that factories situated near port areas like Mumbai, Calcutta, Chennai and Kochi will find it difficult to comply with the order as it makes more economic sense for them to use imported oil. These factories have been using 90-95 per cent imported oil and forcing them to use 25 per cent domestic oil will jack up their costs.

Similarly areas like Bihar, Assam, Tripura and Orissa, where availability of domestic edible oil is a problem, the mandatory use provision will make matters difficult for vanaspati factories, say manufacturers.

The vanaspati industry thus wants that the mandatory imposition at the factory level should be removed and the government should only work towards ensuring that a single manufacturing company as a whole uses the stipulated level of domestic edible oil and that too on a yearly basis.