MANUAL-X (Scheme for distribution of subsidized imported edible oils)
Government of India
Ministry of Consumer Affairs, Food and Public Distribution
Deptt. Of Food & Public Distribution
Directorate of Vanaspati, Vegetable Oils & Fats
The manner of execution of subsidy programmes, including the amounts allocated and the details of
beneficiaries of such programmes.
In order to provide relief to consumers from rising prices especially to BPL households
and to augment availability of edible oils in the country, a scheme for distribution of subsidized imported edible
oils through States/Uts has been implemented by Government since 2008 for distribution of edible oils to ration
card holders with a subsidy of Rs. 15 /- Kg. The scheme was extended in 2009-10 and in 2010-11 and further
period upto 30-9-2011. During 2008-09, 12 states distributed 3.6 Lakh tons of edible oils and 18 States/Uts was
allocated about 9.08 Lakh tons of edible oils during 2009-10 and 2010-11. Nine States have been allocated about
3.24 Lakh tons of edible oils from April, 2011 to September, 2011. The scheme has been extended for further
period upto 30.9.2012.So far, eight states have been allocated total quantity of about 6.82 lakh tons of edible
oils for period from October,2011 to September,2012.The details of States and allocation of edible oils are listed
States PSU Name of the Oil Quantity of oil allocated Quantity of oil allocated
April,2011 to October,2011toSeptember,2012(In
September,2011(In MT) MT) as on 01.06.2012
Maharasthra STC RBD Palmolein 87740.00 174000.00
Goa STC RBD Palmolein 3650.00 ---
Uttar Pradesh STC RBD Palmolein 8000.00 ---
Andhra Pradesh MMTC RBD Palmolein 93500.00 252000.00
Gujarat MMTC RBD Palmolein 12000.00 18000.00
Dadar & Nagar MMTC RBD Palmolein --- 360.00
Tamil Nadu PEC RBD Palmolein 90000.00 213600.00
Himachal PEC Crude 9000.00 18000.00
Lakshdweep PEC RBD Palmolein 60.00 ---
West Bengal NAFED RBD Palmolein 20000.00 ---
Rajasthan NCCF RBD Palmolein --- 5000.00 (oct,11 to March,12)
Mizoram NCCF/NAFED RBD Palmolein --- 1300.00
Total --- --- 323950.00 682260.00
SCHEME FOR DISTRIBUTION OF SUBSIDISED IMPORTED EDIBLE OILS
THROUGH STATE GOVERNMENTS/UTs - REVISED.
1. The Scheme for distribution of subsidized edible oil would be restricted to
imported edible oils. PSUs may import refined palmolein/soyabean oil for
the initial two months to facilitate implementation of the Scheme without
delay and thereafter crude palm/soya oil may also be imported.
2. PSUs viz. PEC, MMTC, STC, NAFED and NCCF will import edible oils
under the Scheme and STC will coordinate with other PSUs in all the
matters relating the import, refining and supplying the packed edible oils to
the State Governments.
3. The subsidy will be Rs.15/- per kg. of imported edible oils. The subsidy
would be given to the designated PSUs directly by the Government of
4. The PSUs would supply the subsidized oil to State Governments/UTs who
will supply the oil to ration card holders. The maximum quantity so
distributed by State Governments will not exceed 1 litre of edible oil per
ration card/family per month. They may distribute the subsidized oil
through PDS shops/other outlets as decided by them. They may restrict
the distribution to BPL families or cover APL families as well, depending
upon the availability and the distribution logistics. It would be the
responsibility of the State Government to ensure that the oil is not
diverted/leaked and the targeted consumers get it.
5. The State Governments would decide the price at which the oil would be
sold to the ration card holders. The State Governments will pass on the
entire subsidy to the ration card holders.
6. The refined oil would be packed in packets of 1litre/1/2 litre as desired
by the State Governments with a label mentioning that it is subsidized by
the Government of India alongwith other relevant details.
7. The State Governments/UTs would place their demands, restricted to
allocation made by the Govt. of India, with the PSUs and lift the stocks
within the time agreed upon. The State Governments would take delivery
of the packed refined oil from the PSU delivery point/packing centre. The
State Governments will sign agreements with the PSUs and provide
advance payment or bank guarantees to the PSUs for the oil to be
contracted by them. The States will inform the PSUs from time to time the
maximum price at which edible oil may be contracted. Contracting will be
done by the PSUs as per their monthly requirements indicated by the
States. The State Governments will reimburse the PSUs all the actual
costs of oil contracted as mentioned in para 8. The State Governments
will have to pay the PSUs any losses that are incurred by the PSUs if they
do not take the oil imported for them as per the agreements signed by
them with the PSUs.
8. The State Governments would be charged the entire cost of import upto
packing, including charges incurred by PSUs such as port charges,
transport charges, charges, trading margin, interest, refining and packing
charges, storage charges, etc. minus the subsidy @ Rs.15/- per kg. The
cost of transportation from the packing centre/distribution centre and all
other costs will also be borne by the States/UTs concerned. The PSUs
will intimate the modalities for payment and other financial transactions to
the State Governments.
9. Administrative costs including the trading margin of PSUs and distribution
may be subsumed in the cost and a flat Rs. 15/- per Kg. subsidy may be
10. The subsidies from GOI will be restricted to a total of 10 lakh tons of edible
oil under this Scheme during financial year.
11. The edible oil will be allocated by the Department of Food & Public
Distribution to the States taking into account the BPL households in the
State, the quantity requested for allocation under this Scheme by the
States, efficient distribution mechanism put in place by the State
Government for this purpose and prompt offtake of subsidized edible oil by
12. In case of States not making arrangements for lifting the allocated edible
oil within one month of allocation, the allocation to such States may be
cancelled and the quantity shall be reallocated to other States.
13. The states shall give monthly statement to the Government of India
a. Quantity ordered for import by them;
b. Quantity lifted by them;
c. Quantity distributed through PDS/other outlets; and
d. Price at which such oil has been distributed.