ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Silk Exports- Bright Spot

profits in the past on the sale of imported oils. What is really questionable is why the cost of production should at all be subsidised?
By far the most irresponsible (ridiculous would be a more appropriate term) statement in the memorandum is the one relating to the generation of black money. It is stated that with the advantages it enjoys from the government, vanaspati industry generates 'as much as Rs 5,000 crore' of black money a year. Black marketing in vanaspati is by no means uncommon, depending on the spread between the control price and the prices of indigenous oils. But the figure of Rs 5,000 crore cannot but evoke ridicule. With its annual turnover estimated around Rs 1,500 crore, the industry will have to sell its entire production at double the price fixed under the voluntary control scheme to generate Rs 1,500 crore of black money. On the basis of 9 lakh tonne production, a premium of Rs 20 per tin of 15 kg would yield an extra income (black money) of Rs 120 crore.

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