Central Government Raids Several States for Hoarding Edible Oil

On edible oil and oilseeds, the government is tight. On Friday, central teams raided Madhya Pradesh, Gujarat, and Rajasthan to check for edible oil hoarding.

The government has learned that large quantities of edible oil and oilseeds are being stored. As a result of the lower number of people entering the market, prices are steadily rising. Inflation is directly affected as a result of this. Previously, the central government made a major decision about soybean and sunflower oil to reduce inflation.

By March 2024, the government plans to abolish the custom duty and agriculture infrastructure cess on imports of 2 million tonnes of crude soybean and sunflower oil.

Customs duty would not be charged on 20 lakh tonnes of crude soybean and sunflower oil yearly in the financial years 2022-23 and 2023-24, according to a notification issued by the Ministry of Finance. The government believes that exempting imports from duty will lower domestic prices and aid in inflation management.

Last month, special teams in Maharashtra, Madhya Pradesh, and Rajasthan cracked down on hoarding of oilseeds and edible oils, and inspections were begun in five additional states. The central teams were tasked to conduct surprise inspections of edible oil and oilseed stockpiles held by retailers, wholesalers, large retailers, and processors in major oilseed producing and consuming states.

The food ministry stated in a statement that central teams discovered soybean and mustard seed hoarding in Madhya Pradesh's Dewas, Shajapur, and Guna districts. These seeds were much more than the government's stock limit.