Centre further tightens stocks limits on edible oils and oilseeds

Extends curbs till June 30, specifies quantity each trader can hold in states where the quantum hasn't been laid out

The Centre has tightened the stock limits on edible oils and oilseeds by extending the curbs till June 30, 2022 and also by specifying the quantity that each trader can hold in those states where the quantum hasn’t been laid out.

The government, in an order issued in October 2021, had imposed stock holding limits on edible oils and oilseeds to control their prices.

But, it had left it to the states to determine the quantum of holding depending upon their local needs and requirements.

However, since then six states namely UP, Karnataka, Himachal Pradesh, Telangana, Rajasthan and Bihar had specified the quantity of stocks that each retailer, wholesalers, processors and bulk consumer can hold.

The rest of the states hadn’t specified the quantum. This was valid till March 2022.

Following a review of the directions, the Centre has now laid down that retailers can hold only upto 30 quintals of edible oils and 100 quintals of oilseeds, while wholesalers can hold 500 quintals of edible oils and 200 quintals of oilseeds at any given point of time.

Similar norms have also been laid down for big chain retailers and processors.

This will not be applicable in those six states which have levied their own stock limits on retailers and wholesalers.

“The decision will empower states to regulate storage and distribution of edible oils and oilseeds and check hoarding in the country,” the government said in a statement.

Ironically, the limits have been tightened at a time when oilseeds production in the ongoing rabi harvest season is projected to be higher than this year.

As per latest data, oilseeds crop has been planted in around 10.27 million hectares this year, which is 23 per cent more than last year.

Mustard seed production is estimated to be over 11 million tonnes this year, up from 8.5 million tonnes last year.

The decision to tighten stock limits comes barely days after the annual Economic Survey presented in Parliament last week said that knee jerk reactions to price rise of essential commodities sends wrong signals to domestic producers and creates an environment of uncertainty.