Edible oil manufacturers seek exemption from stock limits

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Published: April 11, 2020 3:50 AM

Explaining its rationale behind seeking exemption, SEA has said that edible oils produced by manufacturing units are kept at depots managed by the manufacturers or CFAs appointed by them.

The vegetable oil industry has urged the government that edible oil manufacturers and other makers of essential goods, their clearing and forwarding agents (CFAs), depots and their storage locations be exempted from any stock limits imposed under the ECA by the respective states.The vegetable oil industry has urged the government that edible oil manufacturers and other makers of essential goods, their clearing and forwarding agents (CFAs), depots and their storage locations be exempted from any stock limits imposed under the ECA by the respective states. (Representative image)

The Solvent Extractors Association of India (SEA) has requested the Centre to advise state governments for exempting units manufacturing essential items such as edible oil, sugar and flour, and their depots, from stock limits to maintain supply chains.

According to the vegetable oil industry association, the Union ministry of home affairs has issued an advisory to various state governments to invoke the provision of Essential Commodities Act (ECA) for the purpose of imposition of stock limits on storage of various essential commodities.

The vegetable oil industry has urged the government that edible oil manufacturers and other makers of essential goods, their clearing and forwarding agents (CFAs), depots and their storage locations be exempted from any stock limits imposed under the ECA by the respective states. Explaining its rationale behind seeking exemption, SEA has said that edible oils produced by manufacturing units are kept at depots managed by the manufacturers or CFAs appointed by them. The CFA is not a wholesaler or distributor.

CFAs operate under the control and authority of the manufacturers and maintain records of stock transfer and conduct onward sales of the edible oils products to the retailers and wholesale dealers under direction from the manufacturers and CFA should be considered as manufacturers’ depot only, the trade body has stated in its memorandum submitted to the concerned central government departments.

However, the local authorities at the state level fail to categorise and differentiate CFAs and treat them at par with wholesale dealers or distributors, said the association, which fears that stock limits meant for wholesale dealers and distributors are likely to be misapplied to manufacturer’s depot-operated CFAs.

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