Peanut Market News June 12, 2019
A senior official said if the closed oil mills would start functioning again, they would be able to provide direct employment to at least 10,000 people in Saurashtra region where employment opportunities are less as compared to other parts of Gujarat.
The Gujarat government and National Agricultural Cooperative Marketing Federation of India (Nafed) are conducting a joint exercise to revive over 140 closed groundnut oil mills in the state.
Sources close to the development said a high-level meeting for the revival of closed oil mills was recently held in the state capital, Gandhinagar, in which Nafed director Dilip Sanghani, representatives of the Saurashtra Oil Mills Association (SOMA) and other top government officials were present.
Generally, Nafed is procuring groundnut directly from farmers and releasing stock in phased manner to buyers. The system is good for peasants. However, oil millers are facing practical problem of short supply of raw material despite groundnut stocks stored in Nafed warehouses. Farmers are switching to other crops like cotton and hence groundnut cultivation area has gone down in the state.
To solve these, it was decided to involve oil millers in the purchase of groundnut to ensure adequate supply to oil mills, said Dilip Sanghani, director of Nafed, adding they would encourage farmers to increase cultivation area of groundnut this season by ensuring them on higher prices for their groundnut crop. Sanghani, who is also chairman of Gujarat State Cooperative Marketing Federation Ltd (GUJCOMASOL), said groundnut oil extracted by millers would be purchased for government’s Mid-Day Meal scheme as well as selling groundnut oil through fair price shops across the state.
“It would be win-win situation for farmers, oil millers and the state government. Farmers would get good price for their produce and oil millers would get ready buyer. The state government would get good quality edible oil extracted from locally-grown crop and that, too, under the supervision of reputed organisations like Nafed and GUJCOMASOL.”
Sources said the government was also mulling to start a scheme to finance shut oil mills. A senior official said if the closed oil mills would start functioning again, they would be able to provide direct employment to at least 10,000 people in Saurashtra region where employment opportunities are less as compared to other parts of Gujarat.