Govt partially relaxes ban on basmati exports

The government on Wednesday partially relaxed export restrictions on many categories of edible oil as well as seed-quality maize and non-basmati rice. A ban on the export of these commodities was imposed earlier this year to boost domestic supplies and cool rising inflation.

A notification issued by the Directorate General of Foreign Trade (DGFT) on Wednesday said that exports of castor oil, as well as oil derived from niger seed, neem seed, mango kernel, shellac and sal fat would be allowed. Moreover, exports of coconut oil from the Kochi port have also been allowed.

In addition, deemed exports of edible oil to 100 per cent export-oriented units have also been allowed with a condition that the final product is non-edible.

 

The government has also allowed exports of seed-quality maize and non-basmati rice, which can only be used for sowing. “Export packets will be labelled as seeds treated with chemical insecticides and cannot be used for food or feed purposes,” the notification said.

Rice exporters said the move would not benefit them as they export only edible grade rice.