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

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Food Production- Dark Patches

The threat of freezing the foreign exchange allocation for crude import has, therefore, had to be held in abeyance, This is admittedly a temporary development, but there are other long-term factors at work. For one thing, the oil companies have seen how ineptly the contracts for supply of crude to some of the public sector refineries have been worked out. Thus currently the Madras refinery is getting its crude at $ 1.91 per barrel which is substantially higher than even the revised prices of the foreign refineries. Similarly, it should be equally obvious to the oil companies that the Government has made no progress at all in the direction of making independent arrangements for supply of crude. Here, at any rate, our carefully cultivated good relations with the Arab countries have availed us nothing. The foray into exploration in Iran has actually left us with apparently unsaleable crude on our hands (though the other participants in the project do not appear to have faced this problem). Far from being in a position to muster crude supplies for the three foreign- owned refineries, should the contingency arise, the Government has had to let a million tonnes of refining capacity to go abegging in the Barauni refinery for want of crude.

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