22/08/2008 (Commodity Online), Thiruvananthapuram - The kerala government on Thursday expressed its strong protest against Centre’s decision to provide subsidy for importing edible oil saying that the move would badly hit the coconut farmers in the state.

Speaking to reporters here after the cabinet meeting Chief Minister V S Achuthanandan said, "This decision to subsidize imported edible oil, including palm oil, is a mortal blow to millions of coconut farmers. The state registers its strong protest at the Centre for taking the decision”.

Pointing out that instead of subsidizing import of edible oil, the Centre should provide this kind of concession for coconut oil, he said this considered view of the state would be conveyed to the Centre.

State Finance Minister T M Thomas Isaac said the subsidy scheme proposed by the Food Ministry in the name of containing price hike in edible oil would, in reality, 'hit' cultivators of all sorts of oil seeds including coconut.

Isaac said the subsidy was pegged at Rs 15 per kg of imported edible oil. Bulk palm oil was now selling at Rs 15 a kg in the state. With the subsidy coming into effect, the price of palm oil would go down further. This would seriously dent the sale of coconut oil, now priced at Rs 65 a kg.