To control the rise in prices of cooking oil and oilseeds in the domestic market, the government has imposed stock limit regulations on these products till March 31, 2022. However, states are given the freedom to set stock limits depending on their mode of consumption, according to a statement from the Ministry of Consumer Affairs.
Exporters and importers of cooking oil are exempted from the stock limit, but subject to certain conditions, they must meet, the announcement added.
The government took this decision as it did not reduce the prices of the two items despite imposing tax cuts. It also took steps such as instructing oil mills and shareholders to issue their shares so that prices could be controlled.
Interestingly two days ago, the ministry released a report saying that the price of cooking oil, except for mustard oil, has fallen by about 3 per cent to 8 per cent.
Now according to the latest direction, those exporters – whether they are refiners, millers, extractors, wholesalers or retailers – and importers – will be exempted from maintaining stock limits if they can prove the exporter code in whole or in part. Their shares are for export.
In the same way, importers – whether they are refiners, millers, extractors, wholesalers or retailers – will be exempted from maintaining stock limits if they can prove that a portion of their share is derived from imports.
However if they find that the shares maintained by these exporters and importers are exceeding the prescribed limits, they should disclose the quantity within the Government portal within 30 days of the publication of the notice and bring them back to the prescribed limit.