Centre directs wholesalers to disclose their stocks as edible oil prices soar

The Centre, on Wednesday, asked the states to issue directions to wholesalers of oilseeds and edible oils as well as millers and refiners to disclose their stocks and to get them verified due to the soaring prices of edible oils. The Union government has taken this step to prevent hoarding by the wholesalers of edible oils, according to a report in The Times of India.

No cap on edible oil stocks

The letter asking states to get the relevant information was issued by the Union food ministry under the Essential Commodities Act. However, unlike the case of pulses, in which the Centre has put a cap on the stock that a wholesaler can store, the government has not set any limit on the storage of edible oils.

The letter issued by the food ministry empowers the states to collect information on all the people engaged in the production, distribution, or supply of essential goods. It also empowers them to check the record books of people involved in the trade.

The move comes ahead of a high-level meeting that the Union food secretary is scheduled to chair on Friday with state government officials to check for compliance with its order, the TOI reported.

The publication quoted an official saying, “This move is being made to ensure that there is no unfair practice and the consequent rise of edible oils due to hoarding of any kind.”

Soaring oil prices

Over the past year the price of a litre of sunflower oil has shot up from Rs 116 to Rs 172, that of palm oil from Rs 94.2 to Rs 133.7, and the average retail price of soyabean oil increased from Rs 104 to Rs 153.

Earlier this year, the media had reported that the prices of edible oils in India had touched an 11 year high, following which the Department of Food and Public Distribution met various stakeholders and asked states and businesses to take all possible steps to bring down prices.