PremiumIn view of a significant decline in prices, the Central Government on Tuesday said that it would exempt wholesalers and big chain retailers of oilseeds and edible oils from the current stock limit order.
The order will come into effect immediately, according to a statement issued by the food and consumer affairs ministry noted.
The development would allow wholesalers and big chain retailers to keep various varieties and brands of edible oils, which they are unable to keep at present due to stock control order, the statement read.
It further said that the exemption will have a positive effect on the oilseed prices as it will boost procurement of the oilseeds, thereby increasing the returns of domestic oilseeds growing farmers.
India is the world's biggest importer of edible oils such as palm oil, soyoil and sunflower oil.
To check the rates of edible oils and oilseeds, India had first imposed the stock limits on retailers, wholesalers and bulk consumers on 8 October last year under which the stock limit quantity was left to be decided by the states.
Subsequently, the government prescribed uniform stock limits extending the order up to 30 June, 2022. This order was again extended till 31 December, this year.
The ministry reviewed the stock limits keeping in view the price situation of major edible oils, which are now witnessing a gradual reversal, and there is a considerable decline in the prices of edible oil in the international as well as the domestic markets.
"A need was felt for exempting big chain retailers and wholesalers from the stock control order as reports were coming that wholesalers and big chain retail outlets were facing problems in their sale due to the control order as the limits specified for them was very less and replacement of shelf stocks in city limits is not possible on everyday basis," it said.
The ministry said the stock limit for wholesalers and big chain retailers were based on the limits specified in the stock limit imposed in the year 2008 and it was a conscious decision to keep the quantities less. Further, at that time, big chain retailers did not exist or play any major role as compared to today.
The stock limit order was imposed in the country due to increasing prices of edible oils both in the international as well as domestic market. The high volatility in prices was leading to hoarding, profiteering and black marketing at that time.
This timely intervention by the government had led to significant decline of the skyrocketing prices and had helped to keep a check on the hoarding, especially soyabean seeds, it added.
The country has a deficit of edible oils by 55-60% of total consumption. About 13.35 million tonnes of edible oil was imported in FY21.
With agency inputs