In order to check the rising prices of edible oils and oilseeds in the domestic market, the government has imposed stock limit norms on these items till March 31, 2022. Though states have been given the freedom to fix stock limits based on their consumption patterns, a notification issued by the consumer affairs ministry said.
The notification further states that exporters and importers of edible oil are exempted from the stock limit, though it is subject to certain conditions, which they will have to fulfill.
The government took this decision because despite the reduction in duty, the prices of both the commodities did not come down. It also took measures such as instructing oil mills and stock holders to disclose their stocks, so as to control prices.
Interestingly, just two days back, the ministry had issued a statement saying that the prices of edible oils other than mustard oil have come down by about 3 per cent to 8 per cent.
Now as per the latest direction, those exporters – if they are refiners, millers, extractors, wholesalers or retailers – and having an importer-exporter code number, will be exempted from maintaining the stock limit, if they are able to prove that whether the whole or part of their stock is for export.
Similarly, those importers – if they are refiners, millers, extractors, wholesalers or retailers – will be exempted from maintaining the stock limit if they are able to prove that part of their stock is derived from imports.
However, if it is found that the stocks held by these exporters and importers are in excess of the prescribed limit, they will have to disclose the quantity on the Government’s portal within 30 days from the date of issue of the notification and bring them back up to the prescribed limit. .