To check the prices of edible oils, the Center suggests a limit to states: no storage beyond 2 months
As cooking oil prices remain high, the Center called a meeting of states on Oct. 25 to review the enforcement of its order regarding the limit on stocks of edible oils and oilseeds.
The government has also called on states to ensure that stakeholders do not hold stock beyond two months of their capacity.
In a letter, the Department of Food and Public Distribution said, “The demand and consumption of edible oil is different in different states / UTs…. However, to finalize the Edible Oils and Oilseeds Stock Limit, the State / TUs may consider / explore the previous stock limit imposed for Edible Oils and Oilseeds by the State / TUs. We can consider that any actor (refiner, miller, wholesaler, etc.) should not hold excess stock [of] two months of capacity.
On October 8, the ministry had imposed stock limits for edible oils and oilseeds until March 31, 2022. The department had left it to the states to decide on the limit of stocks of edible oil and oilseeds “on the basis of available stocks and the consumption pattern of the territory of the state / Union”, a few exceptions.
Speaking to the media on Friday, Food Secretary Sudhanshu Pandey said that despite high international commodity prices, the Centre’s interventions and the proactive involvement of state governments have led to a cooling of price in India much more than in the international market. When asked if a state has placed stock limits on edible oil or oilseeds, he said: “States are talking to processors and edible oil traders, and we hope there are limits. of stock will be imposed from next week “.
On October 22, the average retail price of peanut oil across India was Rs 182.86 / kg, mustard oil Rs 185.55 / kg, vanaspati Rs 138.31 , soybean oil Rs 154.91 / kg, sunflower oil Rs 168.21 / kg and palm oil Rs. 132.64 / kg.
Explained: the government decides to cut prices
On October 14, the government reduced import duties on crude palm oil to 0%, with a 7.5% tax rate until March 2022. Import duties on oil crude sunflower seed oil and crude soybean oil were reduced to 0%, with a 5% tax rate. until next March. Import duties on refined palm oil, refined sunflower oil and refined soybean oil have been reduced to 17.5% until March 2022.