Economy Jan 30, 2013
New Delhi: The government is likely to consider on Thursday a proposal to remove quantitative ceiling of 20,000 tonnes on export of branded consumer pack of up to five kg of edible oil to boost shipments of processed products from agri-crop.
In October last year, the government had extended a ban on the export of unbranded edible oils until further orders but exempted export of branded edible oil in consumer packs of up to 5 kg with a ceiling of 20,000 tonne per annum.
"The proposal on edible oil export is on the agenda item of tomorrow's Cabinet Committee on Economic Affairs' meeting," sources said.
While the commerce ministry has proposed lifting of quantitative ceiling on all kinds of branded edible oil, it has suggested fixing minimum export price (MEP) of $1,500 per tonne to keep a tab on exports as the country imports more than 50 percent of vegetable oil, they said.
The country exports small quantities of groundnut, sunflower and rapeseed oils to cater to expatriate demand.
According to sources, the CCEA would also consider allowing export of coconut oil in small consumer packs from all ports. At present, exports are allowed only through the Kochi port.
The commerce ministry also proposed to constitute an inter-ministerial committee to revise the MEP of branded edible oil keeping in view the international prices.
The export of unbranded edible oil has been banned since 2008 because the domestic production is only 7-8 million tonne as against the annual demand of 20 million tonnes.
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