In view of a significant decline in prices, the government has exempted edible oils and oilseeds wholesalers and big chain retailers from stock limit order. The food and consumer affairs ministry said the order will come into effect immediately. The move would allow wholesalers and big chain retailers to keep various varieties and brands of edible oils, which they are unable to keep at present due to stock control order. The exemption will also have a positive effect on the oilseed prices as it will boost procurement of the oilseeds, thereby increasing the returns of domestic oilseeds growing farmers.
In a bid to check prices of edible oils and oilseeds, the government had first imposed the stock limits on retailers, wholesalers and bulk consumers on October 8, 2021 under which the stock limit quantity was left to be decided by the states. Subsequently, the Centre prescribed uniform stock limits extending the order up to June 30, this year. It said this order was further extended till December 31, 2022. The ministry reviewed the stock limits keeping in view the price situation of major edible oils, which are now witnessing a gradual reversal, and there is a considerable decline in the prices of edible oil in the international as well as the domestic markets.
According to the ministry, the stock limit for wholesalers and big chain retailers were based on the limits specified in the stock limit imposed in the year 2008 and it was a conscious decision to keep the quantities less. The ministry said the stock limit order was imposed in the country due to increasing prices of edible oils both in the international as well as domestic market. It also said the high volatility in prices was leading to hoarding, profiteering and black marketing at that time. It added that this timely intervention by the government had led to significant decline of the skyrocketing prices and had helped to keep a check on the hoarding, especially soyabean seeds.
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