Centre may soon allow export of branded mustard, groundnut oil
This is for the first time in the last five years that edible oil will be allowed to be exported. India currently imports close to half of its requirements. The Cabinet Committee on Economic Affairs (CCEA) is likely to take a call on the commerce ministry’s proposal shortly.
Last year, India allowed exports of coconut oil from Kerala and Tamil Nadu for boosting farm realisations. India imported a record 10.19 million tonne of vegetable oils in 2011-12.
Sources told FE that the move is being considered because of a surge in import of palm and soyabean oil from Indonesia, Malaysia and Argentina. While the landed price of palm and soyabean oil is estimated at R50 and R70 a litre, respectively, the wholesale price of groundnut and mustard oil is currently R80 and R90 a litre, respectively.
The export of edible oil was initially banned in March 2008 for a period of one year. Subsequently, the restriction was extended each year. However, the government exempted the export of edible oil in branded consumer packs, with a ceiling of 20,000 tonne for a period of one year till September 2013.
The CCEA had recently approved the enhancement of import duty on crude edible oils from zero to 2.5%, while retaining the present import duty of 7.5% on all refined
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