The Cabinet Committee on Economic
Affairs, chaired by Prime Minister Shri Narendra Modi has approved the proposal
of Ministry of Commerce & Industry for removal of prohibition on export of
all varieties of edible oils except mustard oil. Mustard oil will continue to
be exported only in consumer packs upto 5 Kgs and with a minimum export price
of US $ 900 per tonne, says an official release.
The CCEA has also approved empowering
the Committee, chaired by Secretary, Department of Food & Public
Distribution and comprising Secretaries of Department of Commerce, Department
of Agriculture, Cooperation & Farmers Welfare, Department of Revenue, Department
of Consumer Affairs and DGFT, to review the export/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 international trade volumes.
The Inter-Ministerial Committee,
headed by the Commerce Secretary, mandated to review the export of edible oils
in consumer packs & calibrate MEP from time to time, has been discontinued.
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. Allowing export of edible oils may also result in utilization 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 production of oilseeds in 2016-17
has seen a quantum 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.
At present, only certain edible oils can be exported in bulk and other oils
only in consumer packs upto 5 Kg with MEP. In order 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 in India.