Centre allows bulk export of all edible oils except mustard oil
29 Mar 2018
1
The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of the ministry of commerce and industry for removal of prohibition on export of all varieties of edible oils except mustard oil. Mustard oil will continue to be exported only in consumer packs of up to 5kg and with a minimum export price of $900 per tonne.
The CCEA has also approved empowering the committee chaired by secretary, department of food and public distribution and comprising secretaries of the departments of commerce, agriculture, cooperation and farmers welfare, revenue, consumer affairs and DGFT, to review the export / import policy on all varieties of edible oils and consider measures such as quantitative restrictions, prior registration, imposition of Minimum Export Price (MEP) and changes in import duties depending on domestic production and demand, domestic and international prices and international trade volumes.
The inter-ministerial committee, headed by the commerce secretary, mandated to review the export of edible oils in consumer packs and calibrate MEP from time to time, has been disbanded.
Removing of restrictions on export of edible oils is expected to provide additional marketing avenues for edible oils and oilseeds and will benefit the farmers by way of better realisation for oilseeds. Allowing export of edible oils may also result in utilisation of idle capacity in India's edible oils industry.
The lifting of the ban on export of edible oils and a plethora of exemptions is also a step towards Ease of Doing Business.
The production of oilseeds in 2016-17 has seen a quantum jump in comparison to past two years. It is expected that the production of oilseeds in 2017-18 is going to sustain at the same levels. At present, only certain edible oils can be exported in bulk and other oils only in consumer packs up to 5 Kg with MEP. In order to support growing production of oilseeds and to explore additional avenues for marketing of edible oils, it is required to allow bulk export of all edible oils with the exception of mustard oil, which is an item of mass consumption in India.
.webp)
.webp)
.webp)
