Chandigarh’s mustard oil industry treks slippery track

CHANDIGARH: Chandigarh has virtually lost its sheen as a major producer of kachi ghani mustard oil. From some 14 units which took roots in the city from the mid 70s onwards, only four units in the organised sector remain in operation extracting mustard kachi ghani oil from seeds procured from neighbouring states and marketing the same under different brand names.

These units have a ready market within the city as well as in neighbouring Himachal Pradesh, Haryana and Punjab. However, many units in the field shut shop due to stiff competition, entry of other players in the arena who are said to be importing the oil in large quantity from neighbouring states, packing the same here and labelling it for sale at prices lower than those of the seasoned manufacturers.

This price undercutting and alleged short selling has left the existing pioneers in the lurch.So, four units in operation are utilising barely 50 % of their installed capacity. Laments Devi Prasad Khandelia of Khandelia Oil & General Mills: ���We are utilising only 50% of our installed capacity.��� The other three units are Narain Extractions, Sushil Oil Mills and Gopal Oil Mills, which are selling kachi ghani mustard oil under their own brand names.These units on an average produce around 7-13 tonnes per day of kachi ghani oil and their capacity utilisation depends upon the demand.

Perhaps, the Chandigarh Administration���s Weight and Measurement department needs to undertake a survey to assess if at all there is short selling by any manufacturer