The Government on Thursday lifted quantitative restrictions on export of premium edible oils in branded consumer packs of up to 5 kilograms, but fixed a minimum export price (MEP) of $1500 a tonne.
The Cabinet Committee on Economic Affairs (CCEA) cleared a proposal moved by the Commerce Ministry on removing the quantitative ceiling on exports which stood at 20,000 tonnes a year. Edible oils such as groundnut and sesame oils are exported from India mainly to cater to the demand of expatriates.
The MEP is expected to help the Government keep a tab on the edible oils exports as the country still relies on huge imports to meet its growing demand. This move would ensure that the low priced edible oils (which are consumed by the general public and have a large domestic demand) are not allowed to be exported, an official statement said.
The CCEA also decided to set up an inter-ministerial committee under the chairmanship of Commerce Secretary with Secretaries of Department of Consumer Affairs and Department of Food & Public Distribution as members to periodically calibrate the MEP so as to provide flexibility in using MEP as an instrument to regulate exports.
Further, the CCEA also approved the export of coconut oil from all EDI ports and through Land Customs Stations (LCS) to be notified by the Department of Commerce subsequently. At present, the coconut oil is exported through Kochi port.
The move to allow coconut oil exports through other ports would help the domestic producers, who are suffering because of a sharp drop in prices.
The export of unbranded edible oils was banned since 2008 as the domestic output was insufficient to cater to the growing demand.
However, the Government while extending the ban on such exports in October last year had allowed the shipments in consumer packs of up to 5 kgs with a ceiling of 20,000 tonnes per annum.
The extension of export ban last year was seen as a move to boost the domestic supplies in the context of erratic monsoons hurting the kharif edible oilseed output. The latest move to allow unrestricted edible oil exports is aimed at promoting the shipments of processed agriculture products.
India is the largest importer of edible oils. The imports for edible oil year November 2011 to October 2012 stood at 9.98 million tonnes, up 20 per cent over the previous year’s 8.37 m t.