In the wake of a decline in international crude edible oil prices, the government has distributed only about 1 lakh tonne of imported edible oil against a target of 1 million tonne to states to be sold at subsidised rates to poor families.
According to a ministry of agriculture statement on Friday, out of 3.12 lakh tonne of contracted orders, 2.21 lakh tonne has already arrived in the country till September 15.
FE has been consistently reporting that due to softening of international prices, there is lack of interest on the part of the states for the government’s subsidised oil distribution scheme, which was launched in July.
The scheme provides for distribution of 1 million tonne of imported edible oils during 2008-09 at a subsidy of Rs 15 per kg through public distribution system (PDS). The edible oil is being provided at the rate of 1 kg per ration card per month to families under the BPL and AAY categories.
According to the statement, the distribution of cheap edible oil has already started in states such as Andhra Pradesh, Orissa, Chhattisgarh, Himachal Pradesh, Maharashtra, Tamil Nadu and West Bengal.
“It is likely to commence shortly in Delhi, Rajasthan, Karnataka, Uttar Pradesh and Pondicherry,” the statement said.
According to government data, Andhra Pradesh has lifted the maximum of over 20,000 tonne of oils so far, while Maharashtra and Tamil Nadu have demanded 18,200 tonne and 15,500 tonne respectively.
It also said ‘due to proactive measures’, the wholesale prices of soyabean oil, mustard oil and RBD palmolein have declined by 5.41%, 3.88% and 6.36% respectively during last one month.
International prices of major edible oils such as crude palm oil and soyabean oil have slumped by 16.67% and 8.97%, respectively, since last month. The crude palm oil prices have fallen from around $1275 per tonne in March 2008 to a current $725 per tonne.
Out of the 12 million tonne of edible oil consumption in the country, more than 5.5 million tonne is imported.
The country imports around 2 million tonne of soyabean oil from Argentina and Brazil while about 3.5 million tonne of palm oil is imported annually from Malyasia and Indonesia. The prices of the edible oil have seen a sharp rise in the last one year due to increase in palm oil prices globally. In a bid to curb rising prices of edible oil, the government in March had announced an import duty cut on crude palm oil from 45 to 20 % and that on refined palm oil from 52.5 to 27.5%.