Centre imposes stock limits on edible oils to soften the prices in domestic market
New Delhi, October 11, 2021
The Department of Food and Public Distribution has imposed stock limits on edible oils and oilseeds for a period up to March 31, 2022.
The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2021 has been issued with immediate effect from September 8, 2021. Future trading on Mustard Oil and Oilseeds was suspended in NCDEX from October 8, 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, the Ministry of Consumer Affairs, Food & Public Distribution said in a press release on Sunday.
The high prices of edible oil in the international market has a substantial impact on domestic edible oil prices. The Government has formulated a multi-pronged strategy to ensure that the prices of essential commodities like edible oils remain under control, the release said.
According to it, 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.
To further cool down the domestic prices of edible oils, the Centre has issued the order which was shared with all States.
The stock limit of all Edible Oils and Oilseeds will be decided by the respective States Government/Union Territories Administration based on available stock and consumption pattern of the State/Union Territory.
However, certain categories are exempted. 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, can 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.
An importer, being a refiner, miller, extractor, wholesaler or retailer or dealer, if such importer can 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 the 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.
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, the release added.