Oil traders fret as deadline nears

LUCKNOW: With the September 30 deadline for a ban on the sale of open mustard oil fast approaching, small-time oil traders are a worried lot. If the government fails to extend the deadline it would entail closure of shop for them.
The deadline comes in wake of Central government's directives to all state governments to ensure that open mustard oil is not sold in the market.The directive was issued around three years back with the specific intent of ensuring that adulterated oil was not sold. Cases of oil being adulterated with Argemone had surfaced at that time. The adulteration had led to dropsy in many cases.
The Central government's directives were not imposed during Mulayam Singh Yadav's regime as he had sought an extension of time. When chief minister Mayawati assumed office it was proposed to put the move in abeyance till September 30. This approaching deadline has now become a cause of worry for the small-time oil traders who are persistently maintaining that the adulteration is not done at their end.
The decision is also expected to impact consumers who do not go in for bulk purchase of oil, but limit their purchase of oil to anything between Rs 8 and Rs 10 per day. Included in this category are the daily wagers, the BPL people or those whose income is so meagre as to prevent them from going in for sealed packets, tins or bottles.
Uttar Pradesh has around 20,000 small-time oil traders who eke a living by extracting oil from expellers set in their mills. The quantum of mustard seed crushed by them ranges from five to 25 quintals or more per day. Selling this oil in sealed packs would entail setting up of sealing machines and added expenditure.
Says Vishal Gupta of Srikrishna Mustard Oil Mill “we do business with a capital of Rs 2 to 3 lakh the rest being on credit. How can we set up a sealing plant or compete with the big timers in the field.”
Echoes another small-time trader who requested anonymity “why are we being targeted when we are open to our oil being checked anytime. Why are the ‘big vayapris' not being targeted.
Adds the state president of the UP Udyog Vyapar Mandal and an oil trader himself Radhey Shyam Gupta “why has the government not sought an answer on how a 15 kg tin of mustard oil is being sold in the market at anything between Rs 750 to Rs 825 when its cost is not below Rs 922.50 at the rate of Rs 61.50 per kg.”
He alleged that the low cost of the oil was on account of adulteration. He said “the substances used for adulteration range from rice bran oil, solvents extracted from oil cake, non edible oil meant for soap etc.”
He added it was this which was responsible for the oil tins being sold at such low cost. The trader who has already petitioned the chief secretary for time to take up the issue now plans to approach the State Information Commission on the
issue.
While Gupta and others have taken up cudgels on behalf of the small-time traders it merits attention that around 22,000 small units have shut business in UP during the past three to four years rendering around two lakh people unemployed.