India on Monday lifted ban on bulk exports of certain edible oils, including groundnut, sesame and soyabean, a move that…
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India on Monday lifted ban on bulk exports of certain edible oils, including groundnut, sesame and soyabean, a move that will help ensure better income to farmers as well as promote domestic processing industry.
Currently, export of edible oils is allowed in up to 5 kg pack at minimum export price of $900 per tonne. The bulk export was banned way back in 2008 to curb price rise.
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"Export of groundnut oil, sesame oil, soyabean oil and maize oil in bulk, irrespective of any pack size has been exempted from the prohibition on export of edible oil," Directorate General of Foreign Trade said in a notification.
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Interestingly, India meets 60-70 per cent of its domestic edible oil demand from imports. The country imported about 14.5 million tonnes of vegetable oils (edible and non-edible) during 2015-16 oil year (November to October).
The government's decision to allow bulk exports comes in the wake of estimated record oilseeds production at 33.59 million tonnes in 2016-17 crop year (July-June), as against 25.25 million tonnes in the previous year.
Welcoming the move, industry body Solvent Extractors Association Executive Director B V Mehta said the decision will lift price sentiment in the domestic market. The prices are currently depressed in view of bumper production.
"We export only 25,000 tonnes of edible oils. With bulk shipments allowed, another 20,000-30,000 tonnes could go. The quantity is not significant but it will give right signal to farmers," he said.
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