Government took a special step to reduce the price of edible oils (indicative picture)
To curb the prices of edible oils, the government took another big step on Saturday. The Ministry of Food and Public Distribution, working under the Center, issued an order to implement the rule of stock limit on oil and oilseeds. According to the order of the government, this rule of stock limit will be applicable till March 31, 2022 next year. The ministry has asked the states to follow the rule of stock limit so that the price of oil and oilseeds can come down.
The government has issued a notification regarding the implementation of the stock limit. After the issuance of this notification, the states will decide the stock limit according to their consumption. Hoarding cannot be done in more states than consumption. It is being said that this will improve the demand and supply and the prices will come down. The government has taken many big steps even before this, but there is no fall in prices. The price of mustard oil is around Rs 200 a liter. No oil is too far below this.
50% increase in 1 year
In the last one year, the price of edible oils has seen an increase of up to 50%. The festive season is ahead. In view of Dussehra and Diwali, the sale of edible oils will increase, but if the prices are not reasonable, there may be more resentment among the people. In view of this, the government has issued a notification to impose stock limit. The government has cut the import duty in the past and the import of many oils was approved, but even after that the prices are not taking the name of reduction.
Keep an eye on the stock limit
In the notification of the government, the states have been ordered to see whether hoarding is happening more than the stock limit. If there is any complaint of hoarding, then action should be taken. The states have been asked to fix the stock limit according to their demand and keep the same amount of oil and oilseeds with them. Under this, SEBI took a big step and stopped futures trading of mustard oil in the futures market. In the past, many other steps have been taken so that the price of edible oils can be curbed.
but the price will not fall
All these steps are being taken to reduce the prices of edible oils in the domestic market. But there is also a lot of problem from the supply side because the supply is not according to the way the consumption of edible oils in India has increased. India currently imports oil-oilseeds up to 60 percent and the prices of oil-oilseeds are skyrocketing in the global markets. Talking about the supply, there is the least supply of mustard in India, so the prices of mustard oil have increased the most. Experts say that by fixing the stock limit, there may be relief in prices in the short term, but it is difficult to get big benefits in the long term. Customers will have to wait till the supply is smooth.
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