Govt may allow groundnut, sesame seed oil bulk exports

The government is considering allowing bulk export of groundnut and sesame seed oil to provide support to farmers who are selling their crops in distress because of a fall in demand after demonetisation. 

The proposal had been put to Cabinet and it could be discussed soon, officials said.

Groundnut in Saurashtra’s major mandi Gondal is selling 4-7 per cent below the minimum support price of Rs 4,200 a quintal. The government fears low realisation will affect sowing and is thus considering allowing exports. 

The agriculture ministry estimates groundnut production this year will be 8.47 million tonnes, up from last year’s 6.73 million tonnes. Oilseed production for the year is estimated at 33.6 million tonnes against last year’s 25.25 million tonnes.  

Various industry bodies such the Solvent Extractors’ Association of India (SEA) and the Saurashtra Oil Mills Association (SOMA) have demanded lifting of the ban on the bulk export of edible oil. 

“We produce 300,000 tonnes of groundnut oil every year and export just 10,000 tonnes in consumer packs. If the government allows it, India can export 30,000 tonnes annually,” said Samir Shah, president, SOMA. 

 

“The cost of packaging for groundnut oil is $150 a tonne, which prices us out of the international market. If bulk exports are allowed, the cost in flexi-tanks will make India competitive,” the SEA said. It estimates the country can export 40,000-50,000 tonnes of edible oil, or 0.25 per cent of the domestic consumption. 

The industry said permitting bulk export of sesame seed oil would open the market in the Far East. “India has the ability to export 100,000 tonnes of sesame seed oil. We can explore China, Malaysia and the Far East if the government allows bulk exports,” said Sanjiv Sawla, chairman of the Indian Oilseed and Produce Export Promotion Council (IOPEPC).