Thu. Oct 21st, 2021

Centre imposes stock limits on edible oils to soften the prices of edible oils in the domestic market

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New Delhi, 10 October (H.S): The Department of Food and Public Distribution in a landmark decision has imposed stock limits on Edible Oils and Oilseeds for a period upto 31st March, 2022.

The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2021 has been issued with immediate effect. Future trading on Mustard Oil and Oilseeds was suspended in NCDEX w.e.f October 08, 2021.

The Centre?s decision will soften the prices of edible oils in the domestic market, thereby, bringing great relief to consumers across the country, said an official from Ministry of Consumer Affairs, Food and Public Distribution.

The high prices of edible oil in international market has a substantial impact on the domestic edible oil prices. Under the visionary leadership of PM NarendraModi, the government has formulated a multi- pronged strategy to ensure that the prices of essential commodities like edible oils remain controlled, the official said. Measures like rationalization of import duty structure, launching of a web-portal for self-disclosure of stocks held by various stakeholders etc. had already been taken.

In a consistent effort to further cool down the domestic prices of Edible Oils, the Centre has issued the order which was shared with all States.

Under this order, the stock limit of all Edible Oils and Oilseeds will be decided by the respective States Government/Union Territories Administration on the basis of available stock and consumption pattern of the State/Union Territory with the following exceptions:

(a) an exporter, being a refiner, miller, extractor, wholesaler or retailer or dealer, having Importer-Exporter Code Number issued by the Director General of Foreign Trade, if such exporter is able to demonstrate that the whole or part of his stock in respect of edible oils and edible oilseeds are meant for exports, to the extent of the stock meant for export.

(b) an importer, being a refiner, miller, extractor, wholesaler or retailer or dealer, if such importer is able to demonstrate that part of his stock in respect of edible oils and edible oilseeds are sourced from imports, the Official informed.

He further said, in case, the stocks held by respective legal entities are higher than the prescribed limits then they shall declare the same on the portal of Department of Food & Public Distribution and bring it to the prescribed stock limits as decided by the State/UT administration where it is conducting its business, within 30 days of the issue of such notification by the said authorities.