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Govt imposes stock limits on oils, oilseeds till June 30

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New Delhi, Feb 9:  The Centre has notified an order specifying the stock limit quantities on edible oils and oilseeds upto June 30 with a view to provide impetus to the various steps taken to cool the prices of edible oil in the country and prevent hoarding.

The Stock Limit Order, notified on February 3, empowers the Union Government and all states/UTs to regulate storage and distribution of edible oils and oilseeds. This would also help the government in checking hoarding of edible oils and oilseeds in the country, a statement from the Ministry of Consumer Affairs, Food & Public Distribution said on Wednesday.

A meeting was held by the Department of Food & Public Distribution on Tuesday with all states/UTs for discussing the implementation plan of the above order. During the meeting it was emphasized that states/UTs authorities may enforce Stock Limit Quantities Order without causing any disruption in the supply chain and also any undue hardship to bonafide trade.

For edible oils, the stock limit specified is 30 quintals for retailers, 500 quintals for wholesalers, 30 quintals for retail outlets of bulk consumers i.e. big chain retailers and shops and 1,000 quintals for its depots. Processors of edible oils would be able to stock 90 days of their storage capacities.

For edible oilseeds, the stock limit is 100 quintals for retailers, 2,000 quintals for wholesalers. Processors of edible oilseeds would be able to stock 90 days production of edible oils as per daily input production capacity. Exporters and importers have been kept outside the purview of this Order with some caveats, the Ministry said.

The meeting was informed that in case the stocks held by respective legal entities are higher than the prescribed limits then it has to be declared on the portal(https://evegoils.nic.in/eosp/login) of the Department of Food & Public Distribution and bring it to the prescribed stock limits in this Control Order within 30 days of the issue of this notification.

States/UTs have also been provided access to this portal for monitoring the disclosed stocks by the entities.

“The above measure is expected to curtail any unfair practices like hoarding, black marketing, etc. in the market which may lead to any increase in the prices of edible oils. The states/UTs were also briefed about the current international price scenario and how the Indian market is affected by it,” the Ministry release said.

Earlier in November 2021 too, the Department of Food & Public Distribution had said, to control prices of edible oils the government had rationalised import duties on palm oil, sunflower oil and soyabean oil, futures trading in mustard oil on NCDEX was suspended and stock limits were imposed too.

IANS
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