Centre imposes stock limits on edible oils to soften prices

New Delhi: The Centre on Sunday imposed stock limits on traders of edible oils and oilseeds, barring importers and exporters, till March 31, in a bid to check rising domestic prices and give relief to consumers. Already, futures trading in mustard oil on NCDEX platform has been suspended from October 8, it said.

Edible oil prices in the domestic retail markets have shot up sharply by up to 46.15 per cent in the last one year due to global factors and local tight supply situation, as per government data. "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 Food and Consumer Affairs Ministry said in a statement.

As per the order issued to all States, State governments and union territories will decide the stock limit to be imposed on edible oils and oilseeds after taking into account the available stock and consumption pattern of that particular State or UT. However, certain importers and exporters have been exempted from the stock limit.

The exemption is given to those exporters (being a refiner, miller, extractor, wholesaler or retailer or dealer) who have an Importer-Exporter Code Number issued by the Director General of Foreign Trade (DGFT) and are able to demonstrate that the whole or part of his stock are meant for exports and to the extent of the stock meant for export.

The exemption is also given to those importers (being a refiner, miller, extractor, wholesaler or retailer or dealer) who are able to demonstrate that part of his stock in respect of edible oils and edible oilseeds are sourced from imports, the ministry said.