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

New Delhi [India], October 10 (ANI): The Department of Food and Public Distribution in a landmark decision has imposed stock limits on Edible Oils and Oilseeds to soften the prices of edible oils in the domestic market for a period up to March 31, 2022, informed the Ministry of Consumer Affairs, Food, and Public Distribution on Sunday.
According to a statement issued by the ministry today, the removal of licensing requirements, stock limits and movement restrictions on specified foodstuffs (Amendment) Order, 2021 has been issued with immediate effect from 8th September 8, 2021.
Future trading on Mustard Oil and Oilseeds was suspended in National Commodity and Derivatives Exchange (NCDEX) from 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, it said.
The Ministry said the high prices of edible oil in the international market have a substantial impact on the domestic edible oil prices. Under the visionary leadership of Prime Minister Narendra Modi, 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.
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, the press statement said.
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.
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.
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.
As per the release, 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 and 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. (ANI)