CCEA approves removal of prohibition of export of edible oil variants.

The Cabinet Committee on Economic Affairs (CCEA), chaired by prime minister Narendra Modi, has approved the proposal of the ministry of commerce and industry for the removal of prohibition on export of all varieties of edible oils, except mustard oil. The mustard oil will continue to be exported only in consumer packs upto 5kg and with a minimum export price of $900 per tonne.

CCEA has also approved empowering the committee, chaired by the secretary, department of food and public distribution, and comprising the secretaries of the departments of commerce, agriculture, cooperation and farmers’ welfare, revenue, consumer affairs and directorate general of foreign trade (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 the domestic production and demand, the domestic and international prices and the international trade volumes.

The inter-ministerial committee, headed by the commerce secretary, mandated to review the export of edible oils in consumer packs and calibrate MEP from time to time, has been discontinued.

Impact
The removal of restrictions on the 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 the utilisation of idle capacity in India’s edible oils industry, and is a step towards ease of doing business by removing confusion arising out of the prohibition of export of edible oils and a plethora of exemptions.

Background
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 5kg with MEP.

In order to support the 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.