Centre imposes stock limits on edible oils, oilseeds to cool prices
11 Oct 2021
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The Department of Food and Public Distribution has imposed stock limits on edible oils and oilseeds for a period up to 31 March 2022 in a bid to soften the prices of edible oils in the domestic market and provide some relief to consumers across the country.
Under this order, the stock limit of all edible oils and oilseeds will be decided by the respective state government/union territory 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 (https://evegoils.nic.in/EOSP/login) 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 business, within 30 days of the issue of such notification by the said authorities.
It shall be ensured by the states governments / union territory administrations that edible oils and edible oilseeds stock is regularly declared and updated on the portal of the Department of Food & Public Distribution (https://evegoils.nic.in/EOSP/login).
The centre had earlier issued an amendment order removing licensing requirements, stock limits and movement restrictions on specified foodstuffs from 8 September 2021. Future trading on mustard oil and oilseeds was suspended in NCDEX with effect from 8 October 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, says a government release.
The high prices of edible oils in international market has a substantial impact on the domestic edible oil prices. The Narendra Modi government has formulated a multi- pronged strategy to ensure that the prices of essential commodities like edible oils remain controlled. Measures like rationalisation of import duty structure, launching of a web-portal for self-disclosure of stocks held by various stakeholders etc had already been taken.
The centre has issued the order, which was shared with all states, in a consistent effort to further cool down domestic prices of edible oils.
