Now, stock of specified commodities in which derivatives trading is permissible and kept in warehouses can be freely transported, distributed and disposed; effective since 16th December, 2019

The Ministry of Consumer Affairs, Food and Public Distribution, through a notification dated 16th December, 2019, has made an amendment to the Removal of Licensing Requirements, Stock Limits and Movement Restrictions on Specified Foodstuffs Order, 2016 (“Principal Order”), effective since 16th December, 2019.

The following amendments have been made:

Principal Order Amended Position Implications

 

Clause 3

 

(1) Any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products (namely maida, rava, suji, atta, resultant atta and bran) paddy, rice,

coarsegrains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato and shall not require a permit or license therefor, under any order issued under the Act, save as otherwise provided under this clause.

 

(2) The provisions of sub-clause (1) shall, in respect of the purchase, movement, sale, supply, distribution or storage for sale of these commodities, not apply to –

 

(i) pulses, for a period up to 30th September, 2017;

 

(ii) sugar, for a period up to 21st November, 2016 in respect of the States of Assam, West Bengal, Tamil

Nadu, Kerala and the Union territory of Puducherry; and for a period up to 28th October, 2016 in respect of other States and Union territories;

 

(iii) edible oils and edible oilseeds, for a period up to 30th September, 2017 except for the purposes of calculation of stock limits under the Act, in the following cases, namely:-

 

(a) an exporter, being a wholesaler or retailer or dealer, having Importer-Exporter Code Number issued by the Directorate General of Foreign Trade, if such exporter is able to demonstrate that the whole or part of his stock in respect of edible oils and edible oilseeds are meant for exports, to the extent of the stock meant for export;

 

(b) a retailer having multiple outlets or large departmental retailers;

 

(c) stock essential to be used as raw materials by licensed food processors for manufacture of food

products;

 

(d) an importer, being a wholesaler or retailer or dealer, if such importer is able to demonstrate that part of his stock in respect of edible oils and edible oilseeds are sourced from imports:

 

Provided that the Central Government or the State Government may direct the importers to

declare the receipts of stocks of edible oils and edible oilseeds and stocks retained by them.

 

(3) Nothing contained in sub-clause (2) shall affect the transport, distribution or disposal of sugar, edible oils and edible oilseeds to places outside the State.

Clause 3

 

(1) Any dealer may freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products (namely maida, rava, suji, atta, resultant atta and bran) paddy, rice, coarse grains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato and shall not require a permit or license therefor, under any order issued under the Act, save as otherwise provided under this clause.

 

(2) The provisions of sub-clause (1) shall, in respect of the purchase, movement, sale, supply, distribution or storage for sale of these commodities, not apply to –

 

(i) pulses, for a period up to 30th September, 2017;

 

(ii) sugar, for a period up to 21st November, 2016 in respect of the States of Assam, West Bengal, Tamil Nadu, Kerala and the Union territory of Puducherry; and for a period up to 28th October, 2016 in respect of other States and Union territories;

 

(iii) edible oils and edible oilseeds, for a period up to 30th September, 2017 except for the purposes of calculation of stock limits under the Act, in the following cases, namely:-

 

(a) an exporter, being a wholesaler or retailer or dealer, having Importer-Exporter Code Number issued by the Directorate General of Foreign Trade, if such exporter is able to demonstrate that the whole or part of his stock in respect of edible oils and edible oilseeds are meant for exports, to the extent of the stock meant for export;

 

(b) a retailer having multiple outlets or large departmental retailers;

 

(c) stock essential to be used as raw materials by licensed food processors for manufacture of food products;

 

(d) an importer, being a wholesaler or retailer or dealer, if such importer is able to demonstrate that part of his stock in respect of edible oils and edible oilseeds are sourced from imports:

 

Provided that the Central Government or the State Government may direct the importers to declare the receipts of stocks of edible oils and edible oilseeds and stocks retained by them.

 

(3) Nothing contained in sub-clause (2) shall affect the transport, distribution or disposal of sugar, edible oils and edible oilseeds to places outside the State.

 

(b) apply to the stock of specified commodities (specified by the Central Government for the purpose of this order), in which derivatives trading is permissible and kept in warehouses accredited by a commodity derivatives exchange and registered with the Warehouses Development and Regulatory Authority for delivery on exchange platforms and this exemption shall be available as long as these conditions are fulfilled.

Previously, the dealers could freely buy, stock, sell, transport, distribute, dispose, acquire, use or consume, any quantity of wheat, wheat products (namely maida, rava, suji, atta, resultant atta and bran) paddy, rice, coarse grains, sugar, gur, edible oilseeds, edible oils, pulses, hydrogenated vegetable oils or vanaspati, onions and potato.

 

However, edible oil and oilseeds, pulses, etc. were excluded from the list of foodstuffs that could be freely bought, stocked, sold and so on, by the dealers. Such exclusion would not apply to transport, distribution or disposal of sugar, edible oils and edible oilseeds to places outside the State.

 

Now, with this amendment, the exclusion will also not apply to the stock of specified commodities (specified by the Central Government), in which derivatives trading is permissible and kept in warehouses accredited by a commodity derivatives exchange and registered with the Warehouses Development and Regulatory Authority for delivery on exchange platforms and this exemption shall be available as long as these conditions are fulfilled.

Source: Ministry of Consumer Affairs, Food and Public Distribution

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