Nine years after ban, govt allows export of edible oil in bulk

Producers realisations to improve, area under oilseeds likely to rise

Dilip Kumar Jha  |  Mumbai 

In an encouraging move, the government of India has allowed exports of select edible oils in bulk effective immediately.

In a notification dated Monday, the Director General of Foreign Trade (DGFT) said, "Exports of groundnut oil, sesame oil, soybean oil and maize (corn) oil in bulk, irrespective of any pack size, has been exempted from the prohibition on export of edible oil." This means, a nine-year-old ban on their exports was lifted from Monday. Until now, exports of select edible oils were allowed only in consumer pack of upto 5 kg.

The move is expected to improve realisation for oil producers, as it enhances their ability to pay higher prices for oilseeds. Ultimately, better realisation would help farmers bring in additional area resulting into proportionate decline in India's import dependence on edible oil. India meets around 60 per cent of its edible oil demand, or 24 million tonnes, through imports.

"It is a welcome move by the government as importing countries would be able to procure non-genetically modified (non-GM) oil from India. The world is a big market for non-GM food. Hence, India would have a good opportunity overseas," said Atul Chaturvedi, Chief Executive Officer, Adani Wilmar Ltd, the producer of Fortune brand edible oils.

Export of edible oil was initially prohibited for one year from March 17, 2008, but was extended from time to time. In October 2012, however, the probation was extended till further orders.

India estimates a bumper oilseed crop this year. But, the marketing of groundnut season seems to have gotten over by now. However, other oils including sesame and soybean would definitely offer an opportunity to Indian exporters.

"Before the ban, India was exporting up to 100,000 tonnes of groundnut oil. Opening export opportunity would definitely help grab this market again. We will start benefiting immediately," said Sanjiv Sawla, Chairman, Indian Oilseeds and Produce Exporters Promotion Council (IOPEPC).

India is looking to export edible oils in bulk to the European and the Far-East countries.

Nine years after ban, govt allows export of edible oil in bulk

Producers realisations to improve, area under oilseeds likely to rise

In an encouraging move, the government of India has allowed exports of select edible oils in bulk effective immediately.In a notification dated Monday, the Director General of Foreign Trade (DGFT) said, "Exports of groundnut oil, sesame oil, soybean oil and maize (corn) oil in bulk, irrespective of any pack size, has been exempted from the prohibition on export of edible oil." This means, nine year old ban on the exports of their exports was lifted from Monday. Until now, exports of select edible oils were allowed only in consumer pack of upto 5 kgs.The move is expected to allow better realisation for oil producers which improve their capability to pay higher prices for oilseeds. Ultimately, better realisation would help farmers bring in additional area resulting into proportionate decline in India's import dependence on edible oil. India meets around 60 per cent of its edible oil demand, to the tune of 24 million tonnes, through imports."It is a welcome move by the government as ...

In an encouraging move, the government of India has allowed exports of select edible oils in bulk effective immediately.

In a notification dated Monday, the Director General of Foreign Trade (DGFT) said, "Exports of groundnut oil, sesame oil, soybean oil and maize (corn) oil in bulk, irrespective of any pack size, has been exempted from the prohibition on export of edible oil." This means, a nine-year-old ban on their exports was lifted from Monday. Until now, exports of select edible oils were allowed only in consumer pack of upto 5 kg.

The move is expected to improve realisation for oil producers, as it enhances their ability to pay higher prices for oilseeds. Ultimately, better realisation would help farmers bring in additional area resulting into proportionate decline in India's import dependence on edible oil. India meets around 60 per cent of its edible oil demand, or 24 million tonnes, through imports.

"It is a welcome move by the government as importing countries would be able to procure non-genetically modified (non-GM) oil from India. The world is a big market for non-GM food. Hence, India would have a good opportunity overseas," said Atul Chaturvedi, Chief Executive Officer, Adani Wilmar Ltd, the producer of Fortune brand edible oils.

Export of edible oil was initially prohibited for one year from March 17, 2008, but was extended from time to time. In October 2012, however, the probation was extended till further orders.

India estimates a bumper oilseed crop this year. But, the marketing of groundnut season seems to have gotten over by now. However, other oils including sesame and soybean would definitely offer an opportunity to Indian exporters.

"Before the ban, India was exporting up to 100,000 tonnes of groundnut oil. Opening export opportunity would definitely help grab this market again. We will start benefiting immediately," said Sanjiv Sawla, Chairman, Indian Oilseeds and Produce Exporters Promotion Council (IOPEPC).

India is looking to export edible oils in bulk to the European and the Far-East countries.

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