Retailers Association of India (RAI) on Thursday said the government’s move to lift stock limits for edible oils for wholesalers and retail chains will help smooth out supply chain issues. The Centre on Tuesday decided to exempt wholesalers and big chain retailers from stock limit on edible oil and oil seeds.
The new amendment is commensurate with modern retail businesses, it added. The industry association said it had represented to the Government that stock limits for oil and oilseeds were grossly inadequate for chain store retailers and hypermarkets, as it was creating operational challenges for large modern retailers.
Kumar Rajagopalan, CEO, Retailers Association of India (RAI), said, “This stock limit had been based on limits specified in the order imposed in past years, which did not account for large chain stores that have come up in the country over these years. This is a welcome move by the government as it recognises that stocking limits have to be seen separately for chain store retailers and hypermarkets.”
This move will not only smoothen the supply chain issues but will increase the market size as wholesalers and chain store retailers will now be able to add more varieties and brands of edible oils, which they were unable to do earlier, it added