Govt may impose the stock limit on oilseeds & edible oil

In a move to cool down sky high edible oil prices, the government is again expected to intervene and impose a stock limit on oilseeds and edible oil. Earlier due to rocketing prices, end consumers seemed to be battered by an unprecedented rise in the edible oil prices over the last 4-5 months. Retail prices of edible oil particularly, soyoil are being sold at 175 rupees a litre as compared to 105-115 rupees in December 2020 and mustard oil is quoting around 175-180 rupees a litre currently from 115-120 rupees a litre.

Earlier, in 2015 the government had imposed the stock-limit on pulses, oilseed and edible oil and some states such as Maharashtra, and Rajasthan had implemented it. Oilseed stock limit was in place until 2016.

The stock limit decision, if imposed could prove to be a great relief for the end consumers but not help the farmers who have nearly completed the sowing of the oilseed, specifically soybean. There were reports of shortage of seed and high cost of the same due to lower availability. If the decision of imposing the stock limit was taken earlier suppose in the months of May, it could have aided the farmers in easy access to cheaper seeds as well. The government’s decision comes with such a huge lag that it neither helps the farmers nor the end consumers. And the government proclaims it wants to provide advantage to the farmers and also the consumers.