BHUBANESWAR: The Odisha Byabasayee Mahasangha, an apex federation of traders’ associations of the State, has opposed repeated directives of the Centre to states for imposition of stock limit on edible oils.
Amid soaring prices of edible oils, the Centre has asked all states to implement its February 3, 2022 stock limit order without causing any disruption in the supply chain and undue hardship to bonafide traders. This is the second order issued by the Centre within a span of three months. In October last year, the Central government had written to states to exercise their powers to impose stock limits and to ensure that all stakeholders in the value chain, be it retailers, wholesalers or traders do not hold stocks in excess of two months of their storage capacity during Diwali festivities.
The edible oil stock limit specified in the order is 30 quintal for retailers, 500 quintal for wholesalers, 30 quintal for retail outlets of bulk consumers (big chain retailers and shops and 1,000 quintal for its depots). Processors of edible oils would be able to stock 90 days of their storage capacities,” the February order said.
For edible oilseeds, the stock limit is 100 quintal for retailers and 2,000 quintal for wholesalers. Processors of edible oilseeds will be able to stock 90 days production of edible oils as per daily input production capacity. Exporters and importers have been kept outside the purview of the order with some caveats.
Taking exception to the Centre’s fiat, Odisha Byabasayee Mahasangha general secretary Sudhakar Panda said he is not aware of the action taken by the State government on the issue. “The government is yet to initiate any consultation with the traders’ body,” he said.
Panda said Odisha being a consuming State, the entire requirement of its edible oil is met mostly by import. The country meets over 60 per cent of its edible oil requirement through imports. The rise in global prices has put pressure on domestic retail prices for more than a year.
“Imposition of stock limit on edible oil will hit consumers hard. Transportation cost is always passed on to the consumers. In case of stock limit, wholesalers will not be inclined to place higher orders which will lead to disruption in supply chain,” he reasoned. Panda reasoned, “The traders do not like the attitude of the government towards them. If they could engaged fair trade practices during extraordinary situations like Covid lockdown and shutdown without causing any inconvenience to the consumers why should they be seen with suspicion now.”