Bringing in an amendment to suspend futures trading on mustard oil and oilseeds, the Department of Food and Public Distribution has imposed stock limits on edible oils and oilseeds up to March 31, 2022.
Noting that The Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs (Amendment) Order, 2021 was issued with effect from September 8, a department statement on Sunday said that future trading on mustard oil and oilseeds was suspended in NCDEX with effect from October 8. The Centre’s decision will soften the prices of edible oils in the domestic market, thereby, bringing great relief to consumers across the country, it added.
With high prices of edible oils in international market having a substantial impact on the domestic edible oil prices, it said that India has formulated a multi-pronged strategy to ensure that the prices of essential commodities like edible oils remain controlled. Measures like rationalisation of import duty structure, launching of a web portal for self-disclosure of stocks held by various stakeholders etc. have already been taken.
In a consistent effort to further cool down the domestic prices of edible oils, the Centre issued an order under which the stock limit of all edible oils and oilseeds will be decided by the respective states government/Union Territories administration on the basis of available stock and consumption pattern of the state/Union Territory with some exceptions.
For instance, in case of an exporter, being a refiner, miller, extractor, wholesaler or retailer or dealer, having Importer-Exporter Code Number issued by the Director General of Foreign Trade, if such exporter is able to demonstrate that the whole or part of his stock in respect of edible oils and edible oilseeds are meant for exports, to the extent of the stock meant for export.
Or, in case of an importer, being a refiner, miller, extractor, wholesaler or retailer or dealer, if such importer is able to demonstrate that part of his stock in respect of edible oils and edible oilseeds are sourced from imports.
In case, the stocks held by respective legal entities are higher than the prescribed limits, then they shall declare the same on the portal (https://evegoils.nic.in/EOSP) 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.
It shall be ensured by the states governments/Union Territory administrations that edible oils and edible oilseeds stock is regularly declared and updated on the portal of the Department of Food & Public Distribution.