The government had imposed in October 2021, stock holding limits on edible oils and oilseeds till March 31, 2022.
The quantities of stock limits of edible oils, oilseeds were left to the state and it’s to decide based on their respective consumption pattern.
In the bid to curb a rise in prices and the government on Friday extended stock holding limits to edible oils and oilseeds till June 30, 2022, while specifying the quantity of stocks retailers, wholesalers and processors can hold.
Subsequently, only six states – Uttar Pradesh, Karnataka, Himachal Pradesh, Telangana, Rajasthan, and Bihar – had imposed the stock holding limits.
Officials from the ministry of consumer affairs told that the Centre has notified the limits for the volumes of stocks held by traders and wholesalers and retailers in those states.
Those who have already imposed stock holding limits for bringing down prices of edible oils. According to new stock holding limits, retailers can hold only up to 30 quintals of edible oils and 100 quintals of oilseeds.
That was observed the maximum benefit of rationalization of duty had not been passed on to the end consumers and according to the MCAFP statement.
According to the ministry of agriculture data, the Rabi oilseeds crop has been planted in around 10.27 million hectares in 2021-22, which is around 23% more than the last year.
Processors of edible oils would be able to stock 90 days of the storage capacities have the market which may lead to an increase in the prices of edible oils, according to a statement by the ministry of consumer affairs, food and public distribution (MCAFP).
The statement also said that in case the stocks held by entities are higher than the limits then it had to be brought down to the prescribed stock limits within the next 30 days.
Then India is dependent on imported edible oils. In 2020-21, India imported 13.35 MT of edible oil, out of which the share of palm oil was around 56%.
So them thanking the elevated prices, the value of import of vegetable oils by India – 97% of which are edible – rose 63% on year in the marketing year that ended on October 31, 2021, even as the volume remained flat.
Last year as part of import duty rationalization, the basic duty on RBD palmolein oil was reduced 12.5% from 17.5%.
The basic duty on refined soyabean and refined sunflower oil has been slashed to 17.5% from 32.5%.
While processors of oilseeds would be able to stock 90 days of production of edible oils as per the daily requirement of the production capacity. According to new stock holding limits.
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