With retail prices of several essential commodities in Tamil Nadu exceeding national averages, the state government has sought the Centre’s approval to impose stockholding limits on rice, pulses, edible oils, and onions to curb hoarding and black marketing.Stockholding limits restrict the quantity of a commodity that traders and other market participants can keep in stock. The Centre generally imposes such limits under Section 3 of the Essential Commodities Act, 1955.The state government has sought the Centre’s concurrence to introduce limits on the specified commodities, for which no such limits are currently in force, according to the information cited in its proposal.In a letter to the Union Ministry of Consumer Affairs, Food and Public Distribution, the state government said the restrictions were necessary to ensure essential commodities remain available to the public at reasonable prices.Editorial | The problem is inflation’s second-round effectsThe Tamil Nadu government is learnt to have cited “global factors” and “crop failure due to El Niño”, arguing that these conditions could encourage wholesalers and millers to hold large stocks and engage in hoarding and black marketing, adding to inflationary pressures and eroding consumers’ purchasing power.Data available on the Department of Consumer Affairs’ portal shows that the monthly average retail prices of several of these commodities in Tamil Nadu were higher than their respective all-India averages during April-September of the current financial year.Explained | Why edible oils are the worst affected by food inflationIn September, rice was priced at Rs 61.66 per kg in Tamil Nadu, against the national average of Rs 46.20 per kg. Tur dal cost Rs 134.23 per kg, compared with the all-India average of Rs 124.41 per kg. Onion prices stood at Rs 59.28 per kg in the state, against Rs 52.96 nationally, while palm oil was priced at Rs 160.28 per litre, compared with the national average of Rs 150.91 per litre.Proposed stockholding limitsStory continues below this adAccording to sources, Tamil Nadu has proposed limits similar to those the Centre imposed through orders issued in previous years. The state has cited these earlier orders as precedents for the restrictions it is seeking.For paddy and rice, the state has proposed a stockholding limit of 2,000 metric tonnes for wholesalers and eight metric tonnes for retailers. Millers would be allowed to hold stocks equivalent to no more than one month’s production capacity.To justify the proposed rice limits, the state has cited the Centre’s wheat stockholding order issued on January 16, 2026. That order applied across states but remained in force only until March 31, 2026.For tur and urad dal, Tamil Nadu has proposed a stockholding limit of 200 metric tonnes for wholesalers and five metric tonnes for retailers. The state has cited the Centre’s July 11, 2024, order imposing stockholding limits on tur and chana, which remained in force until September 30, 2024.Story continues below this adExplained | Inflation generalisation: Why price pressures are spreading, and what it means for interest ratesFor edible oils, including mustard, palm, sunflower, and groundnut oils, as well as vanaspati, the proposed limits are 500 quintals for wholesalers and 30 quintals for retailers. The state has referred to the Centre’s order dated March 30, 2022, which imposed stockholding limits on edible oils for the period from April 1 to December 31, 2022.For onions, the state has proposed limits of 25 metric tonnes for wholesalers and two metric tonnes for retailers. It has cited the Centre’s October 23, 2020, order imposing onion stockholding limits across states and Union Territories until December 31, 2020.