As vegetable oil prices continue to rise, the Center has imposed a limit on edible oils and oilseed stocks until the end of March next year. In a statement on Sunday, the trade union ministry of consumer affairs, food and catering said: “The department … in a landmark decision imposed restrictions on edible oils and oilseed stocks until March 31, 2022.”
“The decision of the Center will reduce the prices of edible oils in the domestic market, which will bring great relief to consumers across the country,” the statement said.
The move comes at a time when edible oil prices are hitting record levels. According to the latest ministry data, the average daily retail price for mustard oil across India reached Rs 184.15 per kg on Friday, with at least 22 centers including Mumbai and Lucknow reporting Rs 200 and up. Mustard oil is the most expensive of the six edible oils for which the ministry tracks retail and wholesale price data. Retail prices for other edible oils are Rs 182.61 / kg for peanut butter, Rs 136.59 / kg (vanaspati), Rs 155 / kg (soybeans), Rs 169.53 / kg (sunflower) and Rs 132.91 / kg. kg (palm oil).
The ministry said high prices for edible oil on the international market “significantly affect” domestic prices. The government has formulated a “multi-pronged strategy” to ensure that the prices of essential commodities such as edible oils remain in check, it stressed.
“The order on the abolition of licensing requirements, stock limits and restrictions on the movement of these food products (amendment) of 2021 entered into force immediately, that is, on September 8, 2021. Future trades in mustard oil and oilseeds were suspended in NCDEX from October 8, 2021, ”it was reported.
“Measures such as rationalizing the structure of import duties, launching a web portal for independent disclosure of information on the stocks of various stakeholders, etc., have already been taken,” it was reported. “As part of a sustained effort to further reduce domestic edible oil prices, the Center issued an order that has been circulated to all states.”
According to this order, the limit of the stocks of all edible oils and oilseeds will be determined by the government of the relevant state / administration of the union territories based on the available stocks and consumption patterns, the ministry said.
Exceptions are provided for exporters and importers. An exporter who is a processor, miller, extractor, wholesaler, retailer or dealer holding an importer-exporter code number assigned by the Director General of Foreign Trade, if such exporter can demonstrate that all or part of its food stocks Oils and edible oilseeds intended for export, the message says.
The statement added that an importer who is a processor, miller, extractor, wholesaler, retailer or dealer can demonstrate that a portion of its edible oils and edible oilseed stocks come from imports.
“If the stocks of the relevant legal entities exceed the established limits, they must declare this on the evegoils.nic.in/EOSP/login portal of the Food and Catering Department and bring them to the established limits. in accordance with the decision of the administration of the state / UT, in which the company operates, within 30 days from the date of sending such notification by the said authorities, ”the statement said.
It emphasizes that the state / territory governments of the Union ensure that the stock of edible oils and edible oilseeds is regularly advertised and updated on the portal.