New Delhi: To curb the rising edible oil prices, the Government has notified a Central Order to extend the stock limits for all Edible Oils and Oilseeds for a period up to December 31, 2022, for all States/Union Territories.
Terming the rise in edible oil prices to overall global inflation in commodities brought about by the current geopolitical situation and the supply chain disruptions, the Ministry of Consumer Affairs, Food & Public Distribution today stated that with the Central Order of March 30, 2022, it has amended the Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016 and its Central Order dated February 3, 2022.
This order is effective from April 1, 2022, up to December 31, 2022. Six States – Uttar Pradesh, Karnataka, Himachal Pradesh, Telangana, Rajasthan and Bihar – which had issued their own control order in pursuance of the Central Order dated October 8, 2021, have also been brought under the purview of the latest order with effect from April 1, 2022.
It may be mentioned that the six states mentioned above were earlier exempted from the Central Order dated February 3, 2022, as they had issued their own Central Orders. With the issue of this Central Order, all States/UTs have been brought under one single order.
In order to enforce the Stock Limit Orders, eight Central Teams have been deputed by the Government of India, Department of Food & Public Distribution since April 30, 2022, for strict compliance/ enforcement of the above Central Order. The surprise inspections are presently underway in selected districts of eight States for checking the stocks of Edible Oils and Oilseeds at ground level i.e with the Retailers, Wholesalers, Big chain Retailers and Processors. These States are Maharashtra, Uttar Pradesh, Madhya Pradesh, Rajasthan, Telangana, Gujarat, West Bengal and Delhi. Strict action in accordance with the provisions in the EC Act will be initiated against the entities if found to be violating the Act.
At present, the domestic production of edible oils is unable to meet the country’s domestic demand. The Country has to rely on large scale imports to meet the gap between demand and supply. Around 56% of the edible oils segment consumed in the country is met through imports. The recent geopolitical events have pushed the international prices of all edible oils to all-time high levels.
The Stock Limit Order notified by the Government empowers the Union Government and all States/UTs to regulate the storage and distribution of edible oils and oilseeds. This step coupled with surprise inspections seeks to help the Government in checking hoarding of edible oils and oilseeds in the country and ensure that the prices of edible oils do not go out of reach of the common man.
