Centre Imposes Stock Limits On Edible Oils Till 31 March Next Year To Reduce Prices

Amid the rising prices of the edible oils, the Centre has imposed stock limits on edible oils and oilseeds for a period upto 31 March 2022, an official release said on Sunday (10 October).

"The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2021 has been issued with immediate effect," the Ministry of Consumer Affairs, Food and Public Distribution said in a release.

Future trading on Mustard Oil and Oilseeds was suspended in NCDEX with effect from 8 October 2021, the ministry added.

The ministry said that the decision will soften the prices of edible oils in the domestic market, thereby, bringing great relief to consumers across the country.

The high prices of edible oil in international market has a substantial impact on the domestic edible oil prices, the ministry said.

It added that the Centre has formulated a multi-pronged strategy to ensure that the prices of essential commodities like edible oils remain controlled.

"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," the ministry said.

"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," it added.

Under the order, the stock limit of all Edible Oils and Oilseeds will be decided by the respective states government and Union Territories administration on the basis of available stock and consumption pattern of the state, UT 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.

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 and Public Distribution and bring it to the prescribed stock limits as decided by the state or UT administration where it is conducting its business, within 30 days of the issue of such notification by the said authorities, the ministry said.

It added that the state governments and UT administrations will ensure that edible oils and edible oilseeds stock is regularly declared and updated on the portal of the. Department of Food and Public Distribution.