The government has banned export of edible oils in branded consumer pack of up to five kilos on concern that productivity of some oilseeds may take a hit on account of 20 per cent deficit rains so far.
“Export of edible oils is permitted only in branded consumer packs of up to 5 Kgs, within a ceiling of 10,000 tonnes, for the period November 1, 2011 to October 31, 2012. Now, with immediate effect, even such export of edible oils is prohibited,” the Directorate General of Foreign Trade (DGFT) said in a notification issued yesterday.
Export of the consignments handed over to the customs up to August 1, 2012 will be permitted, it added.
The country, which meets 50 per cent of edible oil demand through imports, exports small quantities of groundnut, sunflower and rapeseed oils to cater to expatriate demand.
To ensure domestic supply and contain price rise, India banned export of unbranded edible oils in 2008 and extended it year after the year till September 2012.
Last year, exporters were however given relaxation on branded small consumer packs.
Market experts said the ban on export of branded edible oil in small packs would be irrelevant as the country exports a meagre quantity.
The government has taken this step fearing price rise in some of the edible oils in the wake of poor monsoon likely to hit Kharif production including some of the oilseeds like groundnut, they said.
Overall area sown under oilseeds stands at 13.83 million hectare till July 27 of the current Kharif season, which is close to last year’s level.
However, less acreage under groundnut is a cause of worry because of drought-like situation in key growing states - Gujarat, Karnataka and Rajasthan.
Area sown under soyabean (which has less oil content) is, however, higher at 10.15 million hectare from 9.43 million hectare in the review period.
The country imports about 9 million tonnes of edible oils.