In a landmark decision, the Department of Food and Public Distribution has imposed stock limits on Edible Oils and Oilseeds for up to 31 March 2022.
The Removal of Licensing Requirements, Stock Limits, and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2021, has been issued with immediate effect from 8 September 2021. Future trading on Mustard Oil and Oilseeds was suspended in NCDEX with effect from 8 October 2021.
The center’s decision will soften the prices of edible oils in the domestic market, thereby bringing great relief to consumers across the country.
The high prices of edible oil in the international market substantially impact domestic edible oil prices. Under the visionary leadership of Hon’ble prime minister Narendra Modi, the Government of India has formulated a multi-pronged strategy to ensure that essential commodities like edible oils remain controlled. Measures like rationalization of import duty structure, launching 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 center has issued the order, which was shared with all states.
Under this order, the stock limit of all edible oils and oilseeds will be decided by the respective States Government or Union Territories Administration based on available stock and consumption pattern of the State or 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 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. They shall declare the same on the portal (https://evegoils.nic.in/EOSP/login) of the Department of Food & Public Distribution and bring it to the prescribed stock limits as decided by the State or 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 or Union Territory Administrations that edible oils and edible oilseeds stock is regularly declared and updated on the portal of this Department that is Department of Food & Public Distribution (https://evegoils.nic.in/EOSP/login).