The Centre has asked States to implement the stock limit order on edible oils and oilseeds without causing any disruption in the supply chain and impacting the trade.
Keeping prices under check
At a meeting, held by the Department of Food and Public Distribution with all States for discussing the implementation plan of the stock limit order, the Centre told them to enforce the maximum stocking quantity “without causing any disruption in the supply chain and also any undue hardship to bonafide trade”, an official statement said.
The Food Ministry, on February 3, notified the order imposing stock limit on edible oils and oilseeds making it mandatory for States to implement it. The Centre also extended the validity of the stock limits until June 30, which was to expire on March 31. The earlier order issued on October 8 had empowered States to impose the stock limits and only Uttar Pradesh, Karnataka, Himachal Pradesh, Telangana, Rajasthan and Bihar had imposed the quantitative restriction.
The stock limit is expected to curtail any unfair practices like hoarding, black marketing which may lead to any increase in the prices of edible oils, the Food Ministry said. States were also briefed about the current international price scenario and how the Indian market was affected by it, the ministry said.
States have been advised to regularly monitor the stock limits through the portal, where retailers/wholesalers/processors are expected to disclose their stock if it is more than the prescribed limits.
Some caveats
The Centre has asked the retailers, wholesalers and processors to conform to the quantitative limits by March 4 and if stocks held by them are higher than the prescribed quantity, they have to declare the details on the prescribed portal.
For edible oils, the stock limit would be 3 tonnes for retailers (including supermarket chains) at each outlet, 50 tonnes for wholesalers and 100 tonnes for supermarket chains at depot level. Processors are allowed to stock maximum 90 days of their “storage” capacity of edible oils.
In oilseeds, the stock limit will be applied only to edible grade and will be 10 tonnes for retailers and 200 tonnes for wholesalers. It will be 90 days of “production capacity” for processors based on their daily processing.
Exporters and importers have been kept outside the purview of the stock limit order with some caveats, the ministry said.
An exporter, if able to demonstrate that the whole or part of his stock in respect of edible oils and edible oilseeds are meant for exports, only the stock meant for export will be exempted. An importer, if able to demonstrate that the stock in question is sourced from imports, will be outside the purview of the stock limit.
All India average retail price of groundnut oil is flat at ₹180.72/litre in the past one month, while that of mustard oil increased to ₹188.75/litre on February 3 from ₹185.91 on January 3. The average rate of vanaspati has also inched up to ₹140.34/kg from ₹137.77, soyabean oil to ₹148.28/litre from ₹147.69, sunflower oil to ₹161.72/litre from ₹161.59 and palm oil ₹129.72/litre on February 3 from ₹128.54 on January 3.