The government today approved a proposal to remove prohibition on export of all varieties of edible oils, except mustard oil, a move which is expected to boost shipments of the commodity.
Mustard oil will continue to be exported only in consumer packs of up to 5 kgs and with a minimum export price of USD 900 per tonne, an official statement said.
The decision was taken at a meeting of the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi here.
"Removing of restrictions on export of all edible oils is likely to provide additional marketing avenues for edible oils and oilseeds and will benefit the farmers by way of better realisation for oilseeds," it said.
It added that allowing export of edible oils may also result in utilisation of idle capacity in India's edible oils industry and is a step towards ease of doing business by removing confusion arising out of prohibition on export of edible oils and a plethora of exemptions.
The government has also empowered a committee, chaired by Secretary, Department of Food and Public Distribution, to review the export and 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 global trade volumes.
The committee also includes secretaries from departments of commerce, agriculture, revenue, consumer affairs and the director general of foreign trade.
The statement added that the inter-ministerial committee, headed by Commerce Secretary, mandated to review the export of edible oils in consumer packs and calibrate MEP from time to time, has been discontinued.
The production of oilseeds in 2016-17 has recorded a significant 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," it added.
At present, only certain edible oils can be exported in bulk and other oils only in consumer packs up to 5 kg with MEP.
The government said that 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.
Disclaimer: No Business Standard Journalist was involved in creation of this content
