Govt removes cap on export branded edible oil

New Delhi: The government today removed the quantitative ceiling of 20,000 tonnes on export of branded consumer pack of up to 5 kg of edible oil to encourage shipments of value-added processed products from agri-crops.

While lifting the cap on export of value-added branded edible oil, the government decided to fix minimum export price (MEP) of $1,500 per tonne to keep a check on exports as the country imports 50 percent of its vegetable oil requirement.[caption id="attachment_608949" align="alignleft" width="380"]

Export cap removed. Reuters[/caption]

"The Cabinet Committee on Economic Affairs (CCEA) has cleared the proposal of commerce ministry on branded edible oil. It has approved removal of quantitative cap on export of branded edible oil in consumer pack of upto 5 kg," Commerce Minister Anand Sharma told reporters after the meeting.

The MEP of $1,500 per tonne has been fixed on branded edible oil exports. That apart, coconut oil export has been allowed from all ports instead from Kochi port alone, he said.

The CCEA has also suggested setting up of an inter-ministerial committee to review MEP keeping in view the global prices, another minister present in the meeting said.

In October last year, the government had extended a ban on the export of unbranded edible oils until further orders but exempted export of branded edible oil in consumer packs of up to 5 kg with a ceiling of 20,000 tonne per annum.

The country exports small quantities of groundnut, sunflower and rapeseed oils to cater to expatriate demand.

The export of unbranded edible oil has been banned since 2008 because the domestic production is only 7-8 million tonne as against the annual demand of 20 million tonnes.

PTI