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Press Information Bureau
Government of India
Ministry of Consumer Affairs, Food & Public Distribution
05 FEB 2021 6:23PM by PIB Delhi
Storage of foodgrains by private companies

Any notification regarding the permissible limit for storage of foodgrains is issued only when stock limits are imposed on the foodgrains under the EC Act. The Essential Commodities (Amendment) Act, 2020 provides that any action on imposing stock limit shall be based on price rise i.e. (i) hundred per cent increase in the retail price of horticultural produce; or (ii) fifty per cent increase in the retail price of non-perishable agricultural foodstuffs; over the price prevailing immediately preceding twelve months, or average retail price of last five years, whichever is lower.  The amendment provides that such order shall not be applicable to a processor or value chain participant of any agricultural produce, if the stock limit of such person does not exceed the overall ceiling of installed capacity of processing or the demand for export in case of an exporter. 

State Governments as well as Central Government continue to exercise powers under the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, 1980 which provides for detention in such cases for the purpose of prevention of black-marketing and maintenance of supplies of essential commodities.

This information was given in a written reply by the Union Minister of State for Consumer Affairs, Food and Public Distribution, Shri DanveRaosahebDadarao in Rajya Sabha today.

 

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