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To check edible oil prices, Centre suggests limit to states: no stocking beyond 2 months

The government has also asked states to ensure that stakeholders do not hold stock beyond two months of their capacity.

By: Express News Service | New Delhi |
Updated: October 23, 2021 1:05:11 pm
On October 8, the department had imposed stock limits on edible oils and oilseed up to March 31, 2022.

With cooking oil prices continuing to remain high, the Centre has called a meeting of states on October 25 to review enforcement of its order regarding stock limit of edible oils and oilseed.

The government has also asked states to ensure that stakeholders do not hold stock beyond two months of their capacity.

In a letter, the Department of Food and Public Distribution said, “Demand and consumption of edible oil is different for different States/UTs…. However, for finalising stock limit quantity of edible oils and oilseeds, the State/UTs may consider/explore previous stock limit imposed for edible oils and oilseeds by the State/UTs. It may be considered that any stakeholder (refiner, miller, wholesaler, etc.) should not hold stock in excess [of] two months of capacity.”

On October 8, the department had imposed stock limits on edible oils and oilseed up to March 31, 2022. The department had left it to states to decide the stock limit of edible oil and oilseed “on the basis of available stock and consumption pattern of State/Union Territory”, with a few exceptions.

Addressing the media on Friday, Food Secretary Sudhanshu Pandey said despite international commodity prices being high, interventions taken by the Centre and state governments’ proactive involvement have led to the cooling down of prices in India much more than the international market. Asked whether any state has imposed stock limits on edible oil or oilseed, he said, “States are discussing with edible oil processors and traders, and we are hopeful stock limits will be imposed from next week onwards.”

On October 22, all-India average retail price of groundnut oil was Rs 182.86/kg, mustard oil Rs 185.55/kg, vanaspati Rs 138.31/kg, soya oil Rs 154.91/kg, sunflower oil Rs 168.21/kg, and palm oil Rs 132.64/kg.

Explained: Govt move to cut prices

On October 14, government cut import duty on crude palm oil to 0%, with agri-cess of 7.5% till March 2022. Import duty on crude sunflower oil and crude soyabean oil was reduced to 0%, with agri-cess of 5% until next March. Import duty on refined palm oil, refined sunflower oil and refined soyabean oil was cut to 17.5% until March 2022.

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