Administration has no powers to control oil prices: Officials
Suhail Bhat
Srinagar May 18: A sharp rise in the edible oil is becoming a new headache for the people in the Valley as they cannot manage their household budget that is already under stress due to the pandemic.
The complaints of a sudden rise in the edible oil prices are pouring in from across the Valley with people asking the Government to put a check on the soaring prices of this important household item. The prices of edible oils have risen by up to 35% in last three months and price of a 15 kg mustard oil can have increased from around Rs 2000 to Rs 2700.
The popular mustard oil brand including Pir, P-Mark, and V-brand, that are widely used for cooking in Kashmir, are being sold around Rs. 2700 per 15 kilograms. Similarly, the rates of refined oils like a 5-liter can of Dhara have increased from Rs. 600 to Rs 1000. “The lockdown has worsened our economic condition and the sharp rise in essentials is making it hard for us to sustain,” Umar Altaf, a resident of Bagi-Mehtab told Excelsior.
According to the traders, the prices of the edible oils have increased by around Rs 1000 per 15 kg can as compared to the prices in May 2020. They said the prices have accumulated throughout the year and they do not expect them to come down soon.
“The prices have been increasing gradually since March last year. The prices have been increasing every month. There are labourer problems and hence the supply is getting affected. Also, the fuel prices have increased,” a trader said. He added that there are multiple reasons for the hike in the prices and the biggest of them is the shortage of supply in the international market.
The impact of the price hike can be gauged by the fact that the Governor’s grievance cell is overwhelmed with the complaints of soaring prices. “The cell has received so many complaints regarding the issue,” an official said.
Department of Food, Civil Supplies and Consumer Affairs that should ideally regulate the prices of the edible oil has no powers to do so. “Rates are not being fixed by us for edible oil. We only fix rates for perishable items like chicken and mutton. There are central laws where the rates are fixed as per the certification of a particular company,” Additional Director FCS&CA, Srinagar, Mushtaq Ahmad told Excelsior. He added that almost all edible oil is being imported from other states and that makes the matters worse.
The Essential Commodities Act has the provisions to control the prices of essential commodities in extraordinary circumstances, but it is still in infancy in the Valley. “Framing a regulatory body and forming proper consumer courts is still a distinct dream. Once these things are done the law can be fully implemented here. Earlier, laws turned invalid with the annulment of special status JK,” an official said.
Majid Khan, President, All Kiryana, and General Merchants Association that issues rate lists for different household items including edible oils in Kashmir, told Excelsior that the production of edible oil has decreased because of the pandemic. “This has disturbed the demand-supply curve and pushed prices up. This problem is not restricted to the Valley, the entire country faces it,” he said, adding the farmers protest and curbs on trade activities have equally affected the oil prices.
He added palm oil prices have more than doubled in the past year. “India is worlds the biggest consumer of the edible oil and imports most of its requirements from Indonesia and Malaysia,” said.
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