MUMBAI, July 7: Even as the government is pushing for the clearance of the Essential Commodities Act in the parliament, the prices of edible oils have started going through the roof. Groundnut oil, the popular cooking oil of the masses, shot up to an all-time high of Rs 500 per 10 kg in a buoyant oilseeds market here on Tuesday.With this groundnut oil has gone up by over Rs 60 from Rs 440 recorded on May 11. ``Groundnut oil peaked to an all-time high level of Rs 500 on heavy offtake while arrivals for the lean season period remained low. Higher upcountry advices aided the sentiment. Imported palm oil also flared up due to paucity of stocks caused by poor imports,'' said a trader. On Tuesday, groundnut oil shot up by Rs 7 to Rs 500 from Rs 493. Palm oil gained by Rs 5 to Rs 382 from Rs 377 previously. Castor oil commercial flared up by Rs 4 to Rs 332. Edible oil prices rose by about 17-32 per cent during the four-month period from February to July. Among others, the maximum jump of around 32 per cent wasrecorded by soya oil. This was followed by palm oil (30 per cent), sunflower oil (23 per cent) and groundnut oil (29 per cent). ``Edible oil prices have been buoyant since the past couple of months, especially after the reports about the sizable shortfall in edible oilseeds during the current oil year,'' said a source. A section of edible oil analysts feel, the country will have to step up its imports by around 30,000 tonnes against around 1.50 million tonnes imported last year.A section of traders has already suggested that the government lower the import duty on edible oils if it wants to control the country's edible oil situation. Against this, government officials are said to be considering an increase in import duty as a step to "give better rewards to the farmers" as also to earn higher revenue, more so because imports of edible oil is a must given its ever rising demand in the country.A section of edible oil traders feel that at current price levels, the edible oil seed farmers are fairlyrewarded. "It is now time to consider and give due thought to the interests of the consumers," sources said adding, "if the government it can't lower import duty it surely need not increase the duties."The overall demand-supply gap is said to be widening in the international as well as in the domestic markets and consumers are unlikely to see the low price levels witnessed two years ago. ``This is happening at a time when the government is trying to amend Commodities Act,'' said a trader. The bill, which seeks to amend the Essential Commodities Act, L955, aims at expeditious disposal of cases pertaining to hoarding, black marketing and profiteering in essential commodities, ensuring easy availability of essential commodities to the consumers and tackling the genuine hardship of the traders.
