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Hoarding of edible oil, black marketing found in seven

The latest inspection effort launched 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 those states where the violations took place. found.

Eight central government teams along with government officials were appointed to conduct inspections at various oil processing sites in the states, the source added. The Center has invoked the provisions of the Essential Commodities Act to impose inventory restrictions and carry out inspections.

The inventory restriction orders authorize the EU government and all states and UTs to regulate the storage and distribution of edible oils and oilseeds. The stock restriction orders came into force on 1 April and are valid until the end of the year.

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

Recent geo-political events have pushed international prices for all edible oils to all-time highs. Therefore, a need was felt to inspect the domestic market participants to ensure that no unfair practices are resorted to by unscrupulous elements such as hoarding and profiteering, the statement added.

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

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