Cabinet might allow partial export of some edible oils

Export of edible oil was prohibited for a period of one year from 2008

The government is likely to partially allow export of some edible oils in a meeting of the union cabinet likely to be held this week. Officials said the proposal is mainly for export of coconut oil.

"The Cabinet is expected to discuss a proposal to allow export of some edible oils this week," a senior official said.

In October last year, the government had extended ban on export of edible oils until further orders, but exempted outbound shipments of edible oil in branded consumer packs with a ceiling of 20,000 tonnes.

"Prohibition on export of edible oils has been extended till further orders," according to a notification issued by the Commerce and Industry Ministry.

Export of edible oil was initially prohibited for a period of one year with effect from March 17, 2008, which was extended from time to time.

But, the government provided exemption for export of edible oil in branded consumer packs with a ceiling of 20,000 tonnes for one year till September 2013.

Export of fish oil continues to be free, it added. Export of edible oils has been banned as the country faces acute shortage of domestic supply and is heavily dependent on imports. Domestic production of edible oil is just around 7 million tonnes, against the annual demand of 17-18 million tonnes. In 2011-12, the country imported 9.78 million tonnes of edible oil

The wholesale-price inflation in edible oils has been in the range of nine to close to 11 per cent till December this fiscal year. In December, it came down to 9.49 per cent from 9.9 per cent in the previous month.

Some people in the know said the Cabinet might also discuss another proposal to revise the norms of special industry scheme for Jammu and Kashmir.