The share prices of Avenue Supermarts Ltd (DMart) plummeted 11.60% in the past three days. This happened after oil hoarding was caught in Ujjain’s DMart. The store had three times the permitted amount that can be stocked.
As per the district supply officer, the stock limit of oil is a maximum of 30 quintals. However, a stock of about 97.79 quintals was found in the store. The market value of the excess oil that was seized was about 9 lakh 89 thousand rupees.
As per the control order, the display of its price list board was also not found on the spot. A case was registered against the management of DMart under the Essential Commodities Act for depositing oil more than the prescribed limit on the stock of oil.
The shares of Dmart were trading at ₹3975 apiece, on 6th May 2022. Soon after the news came out, its share price crashed by 6% wiping off investors’ wealth. Currently, the price is 11.60% lower than its price on Thursday.
Earlier, the Union Government had formed an inter-ministerial committee to monitor domestic prices, shipments and availability of Agri commodities, especially edible oil. Higher fertiliser and global commodity rates have sent domestic food prices soaring. This has happened because of the Russia Ukraine war and Indonesia’s ban on palm oil exports.
India’s current stock of all types of edible oil is estimated to be 2.1 million tonnes approximately, which is sufficient for the month of May, as per data provided by the food ministry. Another 1.5 million tonnes of imported edible oil is in transit, which will arrive in batches during the course of the month.
“The Centre is keeping a close watch on prices of edible oils so that appropriate measures can be taken to keep a check on the prices,” an official statement by the food ministry said on Sunday.
Special teams have also been constituted to crack down on hoarding and profiteering under the Essential Commodities Act by surprise checks on edible oil processors and traders.
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