Groundnut Oil Extraction
Most of the fat requirement of an ordinary Indian is met by edible oils, of which groundnut oil is one of the most popular items. Groundnut, production in India is mainly concentrated in the states of Gujarat, Tamil Nadu, Andhra Pradesh, Maharastra and Karnataka, which together account for more than 80% of the nation's output of groundnut. Of this, Karnataka's share is roughly 10%. Three technologies are currently used for primary extraction of groundnut oil an d these are : the traditional bullock-drawn ghani, the modified electrically energised : " power ghani" popularised by KVIC and the larger capacity oil expellers in the organised sector. In recent years, traditional ghanies have been progressively displaced and presently, the bulk of groundnut oil production is in the organised sector.

Due to the importance of groundnut oil in the diet of a common person, and in the context of the existing market mechanism in the country, the market for groundnuts and groundnut oil is extremely erratic and very large price and supply variations are not unusual. In the context of wide-spread speculative practices in the trade, it is rather difficult to estimate the true cost components of groundnut oil production. Even marginal shortages have destabilized the market in the past. In view of these considerations, it is very important that the State initiate steps to assure stable prices and supply of this very essential commodity.