ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Better Results on Cheaper Goods

Better Results on Cheaper Goods Hansavivek TATA OIL MILLS COMPANY reduced prices of most of its consumer products last year, and claims that thus it has been passing on benefit of Rs 5 crores a year to its consumers. It has held the price line established 18 months ago, despite sharply rising costs of oils and fats. In response to the prime minister's call to hold the price line, the company participated some time ago in a joint declaration by a group of industrialists not to raise prices this year, unless increases in costs "destroy the viability of our operations'', J R D Tata, chairman, says TOM CO is now faced with serious loss, unless means are found to control the rise in costs of oils and fats. He has suggested to government that it should either reintroduce the fiscal incentives which had been in force between July 1973 and March 1975 to promote the use of non-edible oils, or permit the industry to import tallow directly without import duty. Government had permitted import of 25,000 tonnes of tallow for the period March to June last, but import was routed exclusively through STC, which resulted not only in delayed and inadequate deliveries but also in inflation of the price by Rs 500 per tonne. Between March and June, STC imported only 50 per cent of the quantity, and intends to charge the same, profit on the balance when imported. Apart from tallow, government has also permitted import of edible oils, but imports of edible oils were allow- ed to be made directly. By June, the company had already placed orders for import of over 15,000 tonnes of various edible oils, mainly palm oil products. Because of its participation in UNITATA in Malaysia, TOMCO is in the unique position of being able to help meet the country's need of high quality edible oils, of which palm oil is the cheapest in the world today.

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