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Vegetable-oil sector unlikely to be show signs of revival, says official
Naveen Thukral
Ahmedabad, March 7: The battered vegetable oil industry in the country isunlikely to see any signs of revival in the current oil year due toestimates of lower oilseeds production and surging imports, a seniorindustry official said. "The capacity utilisation of our oil mills which isvery low at around 30-35 per cent is expected to fall further," GovindPatel, chairman of the Central Organisation for Oil Industry and Trade(COOIT) said.COOIT, the leading industry body for oilseeds, unveiled lower estimates forthe 1999-2000 (November-October) summer oilseeds crop at an `Oils andOilseeds Conference' in Ahmedabad. The industry body expects the country'soilseed crop to fall to 18.9 million in 1999-2000 (November-October) from21.65 million tonnes in the previous crop year. Patel said only about 25 percent of India's seed crushing plants, oil mills and solvent extractionsunits were working which was a pointer to the poor health of the industry."For example in Gujarat, there are 52 solvent extraction plants out of whichonly 16 are working and these are also working 10 to 12 days in a month,"Patel said. A flow of cheap imported edible oils in the past two years hasbadly affected the oil industry, Patel said. India, the world's leadingedible oil importer shipped in 4.39 million tonnes of edible oil in the1998-99 oil year, more than double that of the year-earlier period. Farmers shy from oilseed crops Patel said farmers in the main oilseed producing states were switching overto other crops due to a sharp fall in oil prices. "Due to heavy imports ourfarmers are not getting good prices and that is why they are switching tocash crops like pulses," said a trader. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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