Edible oil hoarding, black marketing found in seven states

The recent inspection drive initiated by the central government last month has found hoarding and black marketing of edible oils in over seven states across the country, sources have told Business Today TV. 

Hoarding and black marketing were found in Rajasthan, Uttar Pradesh, Maharashtra, Gujarat, West Bengal, Telangana and Madhya Pradesh, the sources said, adding that the Department of Food & Public Distribution has reached out to the Chief Secretaries of these states where violations were found.

Eight central government teams along with state government officials were deputed to carry out inspections at various oil processing locations in the states, the source added. The Centre has invoked provisions of the Essential Commodities Act to impose stock limits and carry out inspections.

The stock limit orders empower the Union Government and all states and UTs to regulate storage and distribution of edible oils and oilseeds. The stock limit orders came into effect from April 1 and are valid up to the end of the year.

At present, domestic production of edible oils is unable to cater to demand. India has to rely on a large scale on imports to meet the gap between demand and supply, with around 56 per cent of edible oils consumed in the country being imported.

The recent geo-political events have pushed the international prices of all edible oils to all-time high levels. Hence, a need was felt to inspect the domestic market participants to ensure that no unfair practices are being resorted to by unscrupulous elements like hoarding and profiteering, the statement added.

Reserve Bank of India (RBI) Governor Shaktikanta Das on May 4 had said that inflation-sensitive items relevant to India such as edible oils are facing shortages due to the conflict in Europe and export bans by key producers.