Nearly 100 odd oil mills in the state, mostly in Saurashtra region, were experiencing shortage of raw materials (groundnut) as Nafed had stopped selling them due to Lok Sabha elections.
In a major respite to oil millers in Gujarat, the National Agricultural Cooperative Marketing Federation of India (Nafed) has resumed the supply of groundnut stock now that polling is over in Gujarat.
Nearly 100 odd oil mills in the state, mostly in Saurashtra region, were experiencing shortage of raw materials (groundnut) as Nafed had stopped selling them due to Lok Sabha elections. As a result, they were running at almost half their capacities. However, following end of polling in Gujarat on April 23, Nafed decided to release the stock to oil millers as well as merchants of groundnut seeds.
Nafed chairman VR Boda told FE since April 23, Nafed has released more than 60,000 tonne of groundnut. According to Boda, now onwards groundnut supply would remain uninterrupted. Though Nafed had initially decided to discontinue supply for April, but pressure from oil millers and groundnut seeds merchants forced it to resume supplies immediately after the polling was over in the state.
Samir Shah, president of Saurashtra Oil Mill Association (SOMA), said with Nafed restoring supply, most of the groundnut-dependant oil mills would run smoothly. In April, many oil millers, who faced stock shortage, purchased the raw materials from private parties at relatively higher prices too. SOMA secretary Suresh Kaneria said, on and average, groundnut oil mills in the state ran at 50 per cent of their capacity due to Nafed’s decision to stop supply.
Generally, in Gujarat people prefer groundnut over other forms of edible oil. In April and May, they start buying edible oil for the entire year, and hence, oil millers were worried about the supply shortage.