Inspections have revealed very large hoardings of soyabean and mustard seeds in the Madhya Pradesh districts of Dewas, Shajapur, and Guna. These seeds were far in excess of the government's stock limit. Soyabean oil prices have risen due to seed hoarding. Under the EC Act of 1955, the State Government has been asked to intervene and take the necessary action.
Large quantities of edible oils were discovered in Maharashtra and Rajasthan that exceeded the control order's prescribed quantities. Wholesalers and Big Chain Retailers were the most egregious offenders.
State governments have been asked to implement corrective measures in accordance with the relevant sections of the EC Act. In the remaining five states, inspection is still taking place.
The state governments of Maharashtra, Madhya Pradesh, and Rajasthan have also been asked to ensure that the supply chain is not disrupted while actions under the EC Act are taken.
Surprise inspections conducted
Central teams from the Department of Food & Public Distribution have been delegated to conduct surprise inspections of edible oil & oilseed stocks held by Retailers, Wholesalers, Big Chain Retailers, and Processors in major oilseed producing and consuming States in order to ensure strict enforcement of the Central Order of 30th March 2022 and 3rd February 2022. Maharashtra, Rajasthan, Madhya Pradesh, Uttar Pradesh, West Bengal, Telangana, Gujarat, and Delhi have all received teams.
In recent months, the Indian government has taken several proactive steps to stabilize the country's edible oil prices, including a declaration of stocks by all stockholders of edible oils and oilseeds under the Essential Commodities Act (EC Act), 1955.
To prevent price increases due to hoarding and the resulting artificial scarcity of edible oils, which are a basic necessity in the food basket, the Government of India notified a Central Order on March 30, 2022, amending the Removal of Licensing Requirements, Stock Limits, and Movement Restrictions on Specified Foodstuffs Order, 2016 and its Central Order dated 3rd February 2022 by extending the stock limits for all Edible Oils and Oilseeds put This order is in effect from April 1, 2022, to December 31, 2022.
Effective enforcement of the EC Act, 1955 by the states is critical and necessitates supportive action at all levels by state governments and other authorities with the goal of ensuring adequate availability of essential commodities at reasonable prices, including edible oils for the common man.
Cooking oil prices are rising around the world. Domestic edible oil prices have been following the international trend, and prices have risen significantly in the last month, which may be attributed to the current geopolitical situation.
Source - PIB
