The Hindu : Front Page : Isaac slams new edible oil import scheme

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Thursday, Aug 21, 2008
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Isaac slams new edible oil import scheme

Special Correspondent

T.M. Thomas Isaac: demand for coconut oil will depreciate.

THIRUVANANTHAPURAM: Finance Minister T.M. Thomas Isaac has taken strong exception to a new Central government decision ‘to heavily subsidise edible oil imports to the detriment of Indian edible oils, including coconut oil.’

At a press conference here on Wednesday, Dr. Isaac distributed to journalists copies of an order issued by the Union Department of Food and Public Distribution, which said, ‘the scheme for distribution of subsidised edible oil would be restricted to imported edible oils’ only.

He said the scheme was supposedly in the name of price escalation. But, by restricting the subsidy only to imported edible oils, it would depress the demand for Indian edible oils including coconut oil, bringing sure misery to the farmers here, he added.

The announced subsidy was Rs.15 for each kg of imported edible oil. Bulk palm oil was now selling at Rs.55 a kg in the State. This meant that, with the subsidy support, retail selling price for the commodity would come down to Rs.45 a kg. It would be a big blow for the coconut farmers since coconut oil was now selling at Rs.65 a kg.

“If subsidy is indeed thought necessary, it should first go to Indian coconut oil.”

“The Centre slashed Kerala’s rice quota on the eve of Onam festival. This is the second blow. The Congress leaders owe an explanation to the people of the State why their government in New Delhi is doing this,” Dr. Isaac said.

As per the new Centre’s order, the new decision was to encourage public sector undertakings (PSUs) to import more quantities of refined edible oils first and crude edible oils after two months. The PSUs would then supply the same to State governments for distribution to both the below poverty line and above poverty line ration card holders. Each card holder would get 1 kg of imported oil per month.

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