Madras HC reserves orders on plea of edible oil companies – The New Indian Express

Chennai News

By Express News Service

CHENNAI: The Madras High Court had reserved orders on petitions filed by two private palmolein suppliers to stay the operation of an order of the Tamil Nadu Civil Supplies Corporation seeking supply of additional quantities of edible oil without revising prices as per the prevailing rate in the international market.

Justice GR Swaminathan had reserved the orders on Friday after listening to the arguments of the petitioners and the government. The petitions were filed by Starshine Logistics and Ruchisoya Industries that supply palmolein to the Tamil Nadu Civil Supplies Corporation (TNCSC). Starshine stated that, last year, it was given the bid to supply 80 lakh one-litre pouches of palmolein at a cost of `120.25 per pouch. Ruchisoya had been handed the bid for supplying 90 lakh pouches.

However, in March this year, Tamil Nadu Civil Supplies Corporation had ordered Starshine and Ruchisoya to supply an additional quantity of 16.25 lakh pouches and 22.50 lakh pouches respectively. Meanwhile, the companies had contended that following the Russia-Ukraine war, there had been a shortage of sunflower oil in the international market as both countries were major exporters of the oil.

This had triggered a heavy global demand for palmolein. In turn, this had led to the prices spiraling by 25%. Given this situation, the companies had sought interim stay on the operation of the order of Tamil Nadu Civil Supplies Corporation as the latter had been reluctant to revise the rate of the commodity.

Source: https://www.newindianexpress.com/cities/chennai/2022/may/14/madras-hc-reserves-orders-on-plea-of-edible-oil-companies-2453254.html