New Delhi, March 28 (IANS): The Cabinet Committee on Economic Affairs on Wednesday approved a proposal to remove the prohibition on the export of all varieties of edible oils except mustard oil.
The decision, according to a government statement, will provide additional marketing avenues for edible oils and oilseeds and will benefit farmers by way of better realisation for oilseeds.
The Ministry of Commerce and Industry had mooted the proposal which was approved at a CCEA meeting chaired by Prime Minister Narendra Modi.
However, the CCEA decided that mustard oil will continue to be exported only in consumer packs upto 5 kgs and with a minimum export price of $900 per tonne. Mustard oil is an item of mass consumption in India.
“In order to support growing production of oilseeds and to explore additional avenues for marketing of edible oils, it was required to allow bulk export of all edible oils with the exception of mustard oil,” the statement said.
“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.”
At present, only certain edible oils were allowed to be be exported in bulk and other oils only in 5 kg packs.
According to the statement, the production of oilseeds saw a quantum jump in 2016-17 in comparison to the past two years.
“It is expected that the production of oilseeds in 2017-18 is going to sustain at the same levels,” said the statement.
The CCEA also approved empowering a panel headed 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 and changes in import duties depending on domestic production and demand, domestic and international prices and international trade volumes.
As such, the inter-ministerial committee, headed by the Commerce Secretary, mandated to review the export of edible oils, has been discontinued.
