Monday, 18 October 2021

Government imposed a stock limit on oil seeds edible oil to reduce the price

Government imposed a stock limit on oil seeds edible oil to reduce the price

The government on Sunday said it had imposed stock limits on edible oils and oilseeds until the end of March 2022 to soften prices and give relief to consumers.

The food and public distribution department said it had ordered stock limits on these items with immediate effect. The department said that the futures trading on mustard oil and oilseeds are suspending on the National Commodity & Derivatives Exchange Limited (NCDEX) with effect from 8 October.

The department said.

"The Centre's decision will soften the prices of edible oils in the domestic market, thereby, bringing great relief to consumers across the country,"

The department said that high edible oil prices in the international market have substantially impacted domestic edible oil prices, adding that the government has a multi-pronged strategy to ensure that essential commodities like edible oils remain controlled. The department said that the rationalization of import duty structure and launching a web portal for self-disclosure of stocks by various stakeholders are already being taking.

The department said.

"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,"

Government imposed a stock limit on oil seeds edible oil to reduce the price 1pixabay image

Read More : Government cut duties on Edible oil

As per this order, respective state and union territory administrations will set the stock limit of all edible oils and oilseeds based on available stock and the consumption pattern.

There, however, are two exceptions. Exporters who can show that their stock or part of it is meant for exports and importers who can show that their stock is sourcing from imports are exempting from the stock limits.

Where the stocks held by a legal entity are higher than the prescribed limits, they have to declare the same on a designated portal of the department. The department said that this stock has to be brought down to the prescribed stock limits as decided by the respective state or UT administration within 30 days of notification by these authorities.

It also urged the state and union territory administrations to ensure that edible oils and edible oil seeds stock are regularly declared and updated on the designated portal.

The government is currently operating a centrally sponsored scheme called the National Mission on Edible Oils-Oil Palm (NMEO-OP) to increase the domestic production of edible oils and reduce imports dependency. Malaysia and Indonesia are primary sources of edible oil imports for India.

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