Cabinet exempts edible oil, rice exporters from stockholding limit

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SME Times News Bureau | 30 Nov, 2013
The Union Cabinet approved exemption to exporters having IEC Code issued by Directorate General of Foreign Trade (DGFT) from the purview of stock holding limits under the Essential Commodities Act, 1955 with respect to edible oil seeds, edible oils and rice.

"Exemption to exporters having IEC Code issued by DGFT from the purview of stock holding limits under the Essential Commodities Act, 1955 with respect to edible oil seeds, edible oils and rice," said the government in an official release.

This move would help exporters benefit from economies of scale and bigger operation for optimally meeting export demands on a long-term basis, it added.

"If a wholesaler or retailer or dealer having IEC issued by DGFT is able to demonstrate that whole or part of his or her stocks in respect of edible oil, edible oilseeds and rice are meant for exports, then the stocks meant for exports shall be excluded for the purpose of calculation of stock limits," added the release.

In order to check hoarding and black-marketing of essential commodities, the Government has set up a Price Monitoring Cell, which monitors prices of select essential commodities. This monitoring is done in respect of both retail and wholesale prices on a daily basis.

The Cell monitors the prices of 22 essential commodities, which include rice, wheat, pulses, sugar, edible oils and vegetables. These prices are collected from 57 reporting centres across the country by the Civil Supplies Department of states and union territories.

Based on the analysis of price data received, specific interventions are undertaken. It is on the basis of continued price monitoring and Inter-Ministerial Consultations, steps are under operation to contain price rise as well as to enhance the availability of essential items.

This is mainly done by way of allowing import of various items of mass consumption at zero or concessional import duties together with restriction on exports, prescribing stock holding limits under Essential Commodities Act, and allocation of food-grains at affordable prices under Targeted Public Distribution System (TPDS).