Centre takes stock of edible oil prices, reviews stock limitation orders ahead of Diwali

A total of 18 states will impose stock limit orders on edible oil prices ahead of Diwali in view of the rising demand amid festivities.

The Centre on Monday held a meeting with states and union territories to discuss ways to reduce the rising prices of edible oils as demand rises during the festive season. The Union government has taken several steps to ease the edible oil prices including sharp reduction in import duties palm oil, sunflower oil and soybean oil, stopping futures trading in agri commodities and stock limitations.

The central government said that it took measures to reduce edible oil prices.(Bloomberg)

A total of 23 states participated in today’s meeting, people aware of the developments said. Uttar Pradesh took the lead in ordering stock limits while 17 more states are in the process of implementing the same, they added.

The meeting was held in response to a letter written to all states by Union food secretary Sudhanshu Pandey on Friday, in which the department outlined initiatives taken by the Centre to ease prices of edible oils for the relief of consumers and keeping the festive season in mind.

"This is especially important to the context of the upcoming festival season in which demand for edible oils will increase," the government official said in the letter.

On October 10, the Centre had imposed stock limits on traders of edible oils and oilseeds, barring a few importers and exporters, till March 31, in a bid to provide relief to consumers.

State governments and union territories were asked to 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.

"However, for finalising the stock limit quantity of edible oils and oilseeds, the states/UTs may consider/explore the previous stock limit imposed for edible oils and oilseeds by the state/UTs," the department said.

As an example, the department said that, for refiners, stocks of a maximum of two months of the average scale of the last six months could be used. Similarly, quantities for extractors/millers should be fixed, news agency PTI reported.