Centre announces imposing stock limits on edible oils to reduce rising prices

As the prices of cooking oil continue to rise, the Centre has announced the decision to impose a stock limit on edible oils and oilseeds till the end of March next year. The Union Ministry of Consumer Affairs, Food and Public Distribution said in the press release, “The Department has imposed stock limits on Edible Oils and Oilseeds for a period up to March 31, 2022.” It added, “The Centre’s decision will soften the prices of edible oils in the domestic market, thereby bringing great relief to consumers across the country.”

Currently, the prices of edible oil are at record levels. As per the data, the daily average retail price of mustard oil reached Rs 184.15 per kg Friday and more than 20 cities had prices over Rs 200. Mustard oil is currently the most expensive of the six edible oils. According to the data of the Consumer Affairs Ministry, average retail prices of soya oil were ruling at Rs 154.95 per kg on October 9, which was 46.15% higher than last year. As the cooking oil prices continue to rise, the Centre decided to impose a stock limit on edible oils and oilseeds. The release further said, “In case, the stocks held by respective legal entities are higher than the prescribed limits then they shall declare the same on the portal evegoils.nic.in/EOSP/login of Department of Food & Public Distribution and bring it to the prescribed stock limits as decided by the State/UT administration where it is conducting its business, within 30 days of the issue of such notification by the said authorities.”

The rise in costs of international markets is the reason behind the surge in prices

As per the ministry, the high prices of edible oils in India is due to the rising prices of the same in the international markets. The government has decided to implement a strategy to ensure that prices remain under the control of the government and not the international markets. The government has also decided to take several measures like rationalisation of import duty structure and has launched a web portal for self-disclosure of stocks held by various stakeholders. The government has also asked the state governments/Union Territory administrations to continuously monitor the prices of the edible oils and ensure that the stock of edible oils and edible oilseeds are regularly declared and updated on the portal.

Image: PTI/Representative