Govt lifts restrictions on coconut oil exports

The Union government has allowed export of coconut oil through Electronic Data Interchange (EDI) ports. The Director General of Foreign Trade (DGFT) had issued a notification in this regard on Tuesday. Earlier, coconut oil export was allowed only through Cochin port only. Now, it is permitted from all the 13 EDI ports and land custom stations.

In October 2012, the DGFT had allowed export of branded edible oils up to 5 kg packs with a ceiling of 20,000 tonne. Though the government has now removed the ceiling, it insists that the branded pack must be up to 5 kg. The minimum export price for such exports has been fixed at $1500 a tonne.

Coconut farming and oil industry are reeling under a heavy fall in prices due to slackness in demand, affecting 10 million small and marginal farmers directly and an equal number of workers indirectly. Besides, lack of movement in supplies and heavy influx of supply from states like Tamil Nadu were having an adverse impact.

In view of this, the Coconut Development Board has conceived a three-pronged strategy. The board found that the demand for coconut oil was on the rise in the West Asia region, and a major chunk of this demand is now serviced by Philippines and Sri Lanka. If coconut oil is exported through all-weather ports, India can grab a good portion of the global demand and it will also help improve price. Nepal is a large buyer of coconut oil, and at present, the market is supplied by other exporting countries. The Indian ethnic population in the US, Europe, Australia and South Africa would definitely boost demand, and this need to be taken advantage of. An export benefit of 2 per cent duty drawback is also available.