Centre imposes stock limits on edible oils to soften prices in domestic market

Edible oil prices in the domestic retail markets have shot up sharply by up to 46.15 per cent in the last one year due to global factors and local tight supply situation

India meets more than 60 per cent of its edible oil demands through imports. Credit: iStock Photo

With edible oil prices ruling high during the festive season, the government on Sunday imposed stock limits on traders and suspended futures trading of mustard oil to soften the prices.

The stock limits do not apply to exporters and importers of edible oil or oilseeds.

Over the past year, edible oil prices have increased sharply by up to 46.15%, largely due to rise in international oil prices and limited domestic supplies.

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India imports more than 60% of its edible oil requirement with palm oil coming from Indonesia and Malaysia, while soy and sunflower from Argentina, Brazil, Ukraine and Russia.

As per the order issued to all states, state governments and union territories will decide the stock limit to be imposed on edible oils and oilseeds after taking into account the available stock and consumption pattern of that particular state or UT, a Consumer Affairs Ministry statement said.

The states have been asked to ensure stock details of edible oils and oilseeds are regularly declared and updated on the central government's portal, it said.

However, the government has formulated a multi-pronged strategy to ensure that prices of essential commodities like edible oils remain controlled.

Also Read | No end in sight to increasing prices of edible oil

Measures like rationalisation of import duty structure, launching of a web-portal for self-disclosure of stocks held by various stakeholders had already been taken, it said.

As per the data maintained by the Consumer Affairs Ministry, average retail prices of soya oil were ruling at Rs 154.95 per kg on October 9, this year, 46.15% higher than Rs 106 per kg in the year-ago period.

Similarly, average mustard oil prices rose by 43% to Rs 184.43 per kg from Rs 129.19 per kg, while that of vanaspati by 43% to Rs 136.74 per kg from Rs 95.5 per kg in the said period.

In the case of sunflower, its average retail price rose by 38.48 per cent to Rs 170.09 per kg on October 9 this year from Rs 122.82 per kg in the year-ago period, while palm oil prices rose 38 per cent to Rs 132.06 per kg from Rs 95.68 per kg in the said period.

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