New Delhi, Nov 29 (KNN) Traders dealing in rice and paddy will continue to be subjected to the stock limits and licensing requirements with an objective of carrying on with the de-hoarding operations  in the wake of rising prices of food articles, government said today.

The decision to extend the time limit for an Order of December, 2012 up till November 30, 2014 was taken by the Union Cabinet yesterday, it said in a release.

“The main objective of Control Orders is to enable State Governments to continue to take effective de-hoarding operations under the Essential Commodities Act, 1955 by fixing stock limits/licensing requirements etc. in respect of these commodities especially in view of rising prices in the prevailing circumstances.

“This is expected to help in the efforts being taken to tackle the problem of rising prices and also improve the availability of these commodities for the general public especially the vulnerable sections,” the release said.  

Food inflation, mainly from the cereals and vegetables segments, has been increasing despite the country having a good monsoon. The food inflation for October was above 12 per cent year-on-year.  

Background: In August 2006, it was decided to keep in abeyance certain provisions of the Order dated February 15, 2002 in respect of wheat and pulses, with the approval of the Cabinet initially for a period of six months.

The validity of this Order has been extended from time to time incorporating also some more essential commodities. Subsequently Central Orders were issued by keeping in abeyance the operation of this Order in respect of commodities such as edible oils, edible oilseeds, rice, paddy and sugar. The validity of all these orders has been extended from time to time.  At present stock limits are permitted for pulses, edible oils and edible oilseeds for a period upto September, 30, 2014. Wheat and sugar have been withdrawn from the ambit of these orders with effect from April 1, 2009 and December 1, 2011 respectively.  (KNN Bureau/PC)