The government has extended the stock limit order on the price of edible oil and oilseeds until the end of the year because the fall of the war Ukraine has raised prices across commodities.
The notification said, “to curb the rise in edible oil prices; the government has notified the Central Order on March 30, 2022, amending the Removal of Licensing Requirements, Stock Limits and Restrictions on Movement of Certain Foodstuffs Order, 2016 and its Central Order dated February 3, 2022, by extending the limits stocks for all Edible Oils and Essential Oils combined for the period up to 31 December 2022, for all States/Territories of the Union.This Order is in effect from 1 April 2022, to 31 December 2022. “
The center in early February had imposed stock quantity limits on edible oils and oil seeds until the end of June this year.
The stock limit for edible oil is 30 quintals for retailers, 500 quintals for wholesalers, 30 quintals for bulk consumer grocery stores, i.e. retailers and large chain stores and 1000 quintals for its depots. Edible oil processors can store 90 days of their storage/production capacity.
For edible oil seeds, the stock limit is set at 100 quintals for retailers and 2000 wholesalers. The edible oil bean processor can save 90 days of edible oil production according to the daily input production capacity.
But exporters and importers have been kept outside the jurisdiction of this order with some caveats.
“Another important amendment in this order is that six states namely Uttar Pradesh, Karnataka, Himachal Pradesh, Telangana, Rajasthan & Bihar which have issued their control orders pursuant to the Central Order dated October 8, 2022, have also been brought under jurisdiction. effective April 1, 2022, “the notice said.
“Pressure on sunflower oil supplies from Ukraine has had an impact on Indonesia’s export policy, affecting palm oil imports; also, it has been exacerbated by concerns of crop losses in South America, affecting soybean oil supplies causing International peanut oil prices soy has shown a large upward trend, “the notice said.
The Russo-Ukrainian war has further disrupted the global supply chain, which has been affected by the epidemic. Commodity prices have soared since Russia invaded Ukraine on February 24, the most significant attack on a European country since World War II.
“International Soybean Oil prices increased by 5.05 per cent during the month and by 42.22% during the year. International prices of palm oil, both crude and refined, have declined throughout the week and month and, since January 2022, have shown a significant upward trend. The above measures are expected to curb any unfair practices such as hoarding, black marketing etc., in the market and will help control edible oil prices and ensure that the maximum benefits of duty reduction are passed on to end users, ”the notification added.