RAJKOT, July 5: A meeting of presidents of the marketing yards of the Saurashtra region has decided to suspend auction of groundnut in protest against the government's decision to put a ceiling on price of groundnut oil ``without consulting farmers and traders''.They had met in Rajkot on Saturday. ``In a bid to control the rising prices of edible oils, specially groundnut oil, the civil supply minister and chief minister had fixed the ceiling prices, in consultation with only oil millers. This is one sided and farmers and groundnuts growers have not been taken into confidence. If the state government will not lift the ceiling, we will stop auction of groundnut,'' they warned.
The meeting also decided to levy commission, labour and weighing charges on merchants. At present these charges are being paid by farmers. The meeting was held here under the chairmanship of Shamjibhai Khunt, president of the Rajkot yard. Representatives of more than half of the 54 yards in the region were present. Some failed to make it because of the rain.
The meeting decided that a representation should be made to the chief minister to lift the price ceiling and if no favourable decision was taken, the sale of groundnut should be brought to a halt.
The stock and supply of groundnut oil in the market is reduced to a great extent, and groundnut is being exported out of state, under the pretext of exporting groundnut seed.
The price of groundnut, at the time of fixing ceiling prices was Rs 1,525 to Rs 1,550 per quintal. But now it has gone up to Rs 1,625 to Rs 1,650 per quintal. Millers are not purchasing groundnut at this rate, saying that if they purchase at this price, they will not profit by selling groundnut oil at the ceiling price. The receipt of groundnut in the Rajkot yard has also gone down. At present hardly 15,000 bags are received.
The price of mustard seed and cotton seed oil has also gone up. In Mumbai, groundnut oil price has gone up to Rs 500 per 20 kg.
Millers are also complaining that groundnut seed merchants are buying groundnut and sending them out of the state saying that it is Hath Phole Singhdana. They are putting the price at Rs 1,650 per quintal. If we purchase at that rate, we cannot afford to sell the oil at the fixed prices, said sources among millers.
The price of groundnut oil in Maharashtra and other states has exceeded Rs 500 per 20 kg, and it is alleged that millers are earning profit of Rs 35,000 to Rs 40,000 per tanker if they sell the oil outside Gujarat.
Therefore they are sending groundnut oil outside the state saying it is either mustard oil or cottonseed oil. There is no restrictions on the export of these oils. It is also alleged that the authorities at the check posts in south Gujarat-Maharashtra, and south Gujarat-Madhya Pradesh borders are allowing the tankers to pass, accepting huge bribes.
Another modus operandi is to send out the oil using bills of Rajasthan state jurisdiction.
Marketing yard secretary, Vadodaria, briefing reporters about the other decisions taken in the meeting said that at present the weighing, labour and commission charges, are being paid by the farmers.
This issue is still burning since 1993 and there was a strike in the marketing yards, in 1993, and was under litigation in high court.