To curb black marketing of edible oils and oilseeds, to capture rising retail prices and increase their availability, the Indian government is starting an inspection drive. India, a country that relies on imports of edible oil to meet more than 60% of its domestic demand, has seen a sharp increase in the retail prices of various types of cooking oils in recent months as a result of the global geopolitical situation.
In spite of several government measures, prices have continued to rise. The government has taken many measures. A recent step is that we have initiated an inspection drive from April 1 to April 15 to curb hoarding and black marketing of edible oils and oilseeds, food secretary Sudhanshu Pandey said.
Pandey said that a central team along with state government officials is conducting inspections in various oilseeds- and edible oil-producing states.
Large states like Uttar Pradesh, Madhya Pradesh, and Maharashtra are being covered now, and the drive will be intensified in the coming days. The government has already cut import duties on edible oils, extended stock holding limits till the end of this year and ensured early clearance of vessels at ports, besides facilitating imports through private traders. In order to enforce the stock limit orders, eight central teams have been dispatched to ensure strict compliance.
Surprise inspections are presently underway in selected districts of eight states to check the stocks of edible oils and oilseeds at ground level, i.e., with the retailers, wholesalers, big chain retailers, and processors.
These states are Maharashtra, Uttar Pradesh, Madhya Pradesh, Rajasthan, Telangana, Gujarat, West Bengal, and Delhi. Strict action as per the provisions of the Essential Commodities Act will be initiated against the violators, the statement added.
The centre is holding regular meetings with states to ensure the maximum retail price fixed by wholesalers is adhered to by the retailers, said Pandey.
In the case of sunflower oil, the secretary said Russia and Ukraine are the two major suppliers, and private traders are making efforts to source from other countries, but it would be of a small quantity. As per the data maintained by the consumer affairs ministry, there has been a sharp surge in average retail prices of soyabean oil, sunflower oil, and palm oil in the last three months.
As of April 4, the average retail price of sunflower oil was Rs 184.58 per kg, up from Rs 161.71 per kg on January 1 of this year. Similarly, the average retail price of soyabean oil has increased to Rs 162.13 per kg from Rs 148.59 per kg, while that of palm oil has risen to Rs 151.59 per kg from Rs 128.28 per kg in the said period.
On April 4, the average groundnut oil price was flat at Rs 181.74 per kg, but mustard oil saw a 2.78 percent increase to Rs 188.54 per kg.
The government has notified a central order on March 30, 2022, amending the removal of licencing requirements, stock limits, and movement restrictions on specified foodstuffs orders, 2016 and its central order dated February 3, 2022 by extending the stock limits for all edible oils and oilseeds put together for a period up to December 31, 2022 for all states/Union Territories”.
Six states, viz.. Uttar Pradesh, Karnataka, Himachal Pradesh, Telangana, Rajasthan, and Bihar, which had issued their own control orders in pursuance of the central order dated October 8, 2022, have also been brought under the purview of the latest order with effect from April 1, 2022.
“At present, the domestic production of edible oils is unable to meet the country’s domestic demand. The country has to rely on imports on a large scale to meet the gap between demand and supply. Around 56% of the edible oil segment consumed in the country is met through imports. Recent geopolitical events have pushed global prices for all edible oils to an all-time high.
Therefore, the food ministry said that there was a need to inspect the domestic market participants to ensure that no unfair practises like hoarding and profiteering were being resorted to by unscrupulous elements.
The stock limit order notified by the government empowers the union government and all states/UTs to regulate the storage and distribution of edible oils and oilseeds. “This step, coupled with surprise inspections, seeks to help the government in checking hoarding of edible oils and oilseeds in the country and ensure that the prices of edible oils, which are a basic necessity, do not go out of reach of the common man,” the statement said.