India lifts 9-year ban on bulk export of certain edible oils
The Dollar Business Bureau
The Government of India lifted a ban of nine years on bulk exports of some edible oils that include castor oil, coconut oil, groundnut, rice bran oil, soyabean and sesame.
At present, edible oils export is permitted in branded packs up to 5 kg at a minimum export price (MEP) of $900 per MT. The government had banned the bulk export of edible oils nine years ago in 2008 to check price rise.
“Exports of sesame oil, groundnut oil, soybean oil and maize (corn) oil in bulk, irrespective of any pack size, have been exempted from the prohibition on the export of edible oil,” Directorate General of Foreign Trade (DGFT) said in a notification (No.43/2015-20) issued on Monday.
“Export of edible oils was initially prohibited for a period of one year with effect from 17.03.2008 vide Notification No. 85 dated 17.03.2008 which was extended from time-to-time. Vide Notification No.24 (RE- 2012)/2009-14 dated October 19, 2012, the prohibition on the export of edible oil has been extended till further orders,” it said.
According to the notification, the following exemptions are allowed from the prohibition on export of edible oils: castor oil;coconut oil from all EDI Ports and through all Land Custom Stations (LCS) on Indo-Nepal, Indo-Bangladesh, Indo-Bhutan and Indo-Pakistan borders; Deemed export of edible oils (as input raw material) from Domestic Tariff Area (DTA) to 100% EOUs for production of non-edible goods to be exported; edible oils produced out of minor forest produce; organic edible oils subject to export contracts; rice bran oil in bulk, irrespective of any pack size; groundnut oil, sesame oil, soyabean oil and maize (Corn) oil in bulk, irrespective of any pack size.
This move from the government will help in better realisation for the oil processing industry as well as improved income for farmers, leading to more sowing of the crop.
Currently, India meets about 60% of its edible oil demand of 24 MT per year through imports.
This year, it is projected that there will be a bumper crop of oilseeds in the country.