Govt steps in to stem price rise
Palm oil to be sold at subsidised rate at fair price shops across State
All those hit hard by the skyrocketing prices of essential commodities will soon get some respite if Food and Civil Supplies Minister Shobha Karandlaje has her way.
The Minister has chalked out plans to sell palm oil at all fair price shops across the State. Every month each family will be provided one to two litres of palm oil at about Rs 8 to Rs 10 less per litre at fair price shops, compared to the open market (depending on the Government procurement rate), official sources said.
Like other essential commodities, prices of edible oils, including palm oil, have risen steeply in the last few months.
Palm oil is one of the cheapest among edible oils and commonly used by people for cooking. A litre of edible oil, which used to be available for Rs 40 to Rs 45 a year ago, now costs Rs 61. A litre of groundnut oil and sunflower oil, which are also widely used, costs Rs 78 and Rs
81, respectively, in the open market.
Official sources said the Minister will seek the permission of the Chief Minister to go ahead with her plan.
If the Chief Minister gives his nod, the State Food and Civil Supplies department will procure palm oil from the State Trading Corporation of India (STCI). The State wants to avail of a Central scheme under which Rs 15 subsidy will be provided for a litre of oil.
The department, as per the plan, will get the oil at Rs 50 to 55 per litre (procurement price). Minus Rs 15 (subsidy by GOI), per litre at fair price shop may cost Rs 40 to Rs 45, officials explained.
However, the department is in a fix about the implementation as there are chances of incurring a loss in case the market price of palm oil crashes after procurement.
The department had a bitter experience in 2008 when it sold palm oil at fair price shops based on a similar plan. Soon after the procurement, the market price collapsed.
However, the prices improved soon and the department managed to avoid loss.
Price rise committee fails to act
The committee on price rise headed by Chief Secretary S V Ranganath, which met on January 7, failed to take any concrete decision on containing the skyrocketing prices of essential commodities. The committee analysed prices of essential commodities and arrived at a conclusion that onion, vegetables and edible oil prices are increasing, while prices have stabled with respect to others like rice, wheat, tur dal and sugar in the State. But the committee ended its meeting abruptly without taking any decision, official sources said.
