Companies that went to court … no longer have trouble getting this item in the ration!

The Tamil Nadu Consumer Goods Corporation had in December last year called for a tender to supply 4 crore pockets of palm oil with a capacity of one liter to be supplied under the Public Distribution Scheme of the Government of Tamil Nadu.

The Tamil Nadu Consumer Goods Corporation (TCGC) had directed food suppliers to supply extra palm oil by May 3, as palm oil was being supplied at Rs 120 per liter.

Chennai-based companies including Star Shine Logistics and Ruchi Soya, which supply palm oil, have filed a case in the Chennai High Court seeking an order from the Consumer Goods Corporation to cancel it.

The cases came up for hearing today before Judge GR Swaminathan. At the time, the petitioners pointed out that the war between Russia and Ukraine, the two largest suppliers of sunflower oil, had led to a complete halt in its supply and that its price had risen as demand for the next palm oil increased.

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The price of palm oil imported from Malaysia and Indonesia was Rs. 15,290 per metric tonne in February, up from Rs. 45,320 in March, but the Consumer Goods Corporation has ordered the supply of palm oil in addition to the old price.

They argued that the Consumer Goods Corporation should rescind the order as it risks blacklisting their companies and preventing them from participating in government tenders if they do not supply extra palm oil.

On the part of the Tamil Nadu government, it was explained that the war in Ukraine was taking place only internally and there was no impediment to maritime trade.

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The government argued that palm oil could be imported not only from Malaysia and Indonesia but also from the Tamil Nadu Consumer Goods Corporation’s order to supply extra packets of palm oil.

After hearing all the arguments, Judge Swaminathan adjourned the case till date.