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

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Tyre Industry- Cutting Corners

January 11, 1986 a concessional price would accord ill with decontrol of vanaspati prices. ' Vanaspati prices are bound to show considerable variations from place to place, reflecting variations in costs of production of different units depending on the proximity to the area of raw material supply as also to the market. Freight will be another factor contributing to variations in costs and prices. Intensified competition will, of course, tend to keep the price differential within limits. In view of the huge excise duty differential vanaspati is bound to cost a great deal more than refined oil. This could well have a restraining effect on the demand for vanaspati in the event of oil prices moving up quite substantially. This in turn may affect vanaspati output. That hardly need matter. What really matters is the overall availability of edible oils/fats.

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