The order will be effective immediately, a
Removing wholesalers and major retail chains from the stock limit order would allow them to keep different types and brands of edible oils, which they are currently unable to keep due to the limits imposed.
“There was a need to exempt large retail chains and wholesalers from the inventory control, as reports came that wholesalers and large retail chains were experiencing problems with their sales as a result of the audit order, as the limits specified for them were very low and shelf stock replacement in city limits is not possible on a daily basis,” the statement read.
In view of the recovery of sufficient stocks and the continued decline in edible oil prices, both in the international and domestic markets, the statement said it was an “opportune moment” for the exemption.
“The removal will also have a positive effect on oilseed prices as it will boost oilseed purchases, increasing the returns of domestic oilseed growing farmers,” it added.
Initially, the stock limits were imposed in October 2021. Subsequently, the stock limits for edible oils and oilseeds were extended until June 2022 and later the order was further extended until December 31, 2022.
“The Stock Limit Order was imposed in the country due to rising prices of edible oils, both in the international and domestic markets. Its high volatility at the time led to hoarding, profiteering and black marketing. This timely intervention by the government had led to a significant drop in skyrocketing prices and helped control hoarding, especially soybeans,” the statement said.
India is the world’s second largest consumer and largest importer of vegetable oil, meeting 60 percent of its needs through imports. (ANI)