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Sunday, January 10, 2010

THE "OILY" MESS!-NO SOLUTION IN SIGHT

India still rules as the top most nation in edible oil imports as the country has not been able to "manage" the oil crisis that started more than two decades ago, in spite of many half hearted attempts to rein in the oil prices and control the cunning oil lobby that continues to manipulate the market. The continued declining production of oil seeds, growing population, erratic import policies and rampant violation of PFA standards for purity by the industry and the trade have literally thrown the consumer to the 'mercy' of the market.

Though blending of oil, containing not more than two edible oils, is permitted by PFA, the proportion and identity of oils used need to be declared on the label. "For example, if a producer sells edible oil as vegetable oil, he has to mandatorily declare in the pack what oils are blended to make up the consumer pack. Usually, RBD palmolein is blended with sunflower, mustard or soyabean oil. Industry insiders say the problem with some producers is that they mix oils, for example, say, groundnut oil with RBD palmolein, and then sell it as groundnut oil. "We are concerned over this unethical blending since besides manufacturers, even farmers are affected by this trend," Mr Mehta said. What this "unethical blending" does is that it forces manufacturers, who do not indulge in such practices, to lower their price and face losses".

The merry go around indulged by the edible oil import lobby under the very nose of the surveillance authorities is indeed a shame. "Probe by Business Line resulted in startling revelations. A significant part of crude palm oil imported was substantially processed (neutralised, bleached and deodourised) so as to be close to the quality specifications for refined oil, but not quite meeting the specifications of refined oil precisely, and falling a little short. If the imported oil does not meet refined oil specifications, it would be treated as crude oil and would, therefore, bear no customs duty".

It is time consumers demand for a clean up process that will deter unscrupulous traders from exploiting the demand-supply gap that is a recurring feature in this country. GOI has to come up with policies that will ensure increased productivity and over all production of oil seeds in the coming years. If a small country like Malaysia can achieve incredible results in the production of palm oil, dominating the oil world, why, a giant like India cannot achieve success in this area, is a matter of introspection by all the stake holders concerned with edible oil situation in the country.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

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