Cabinet Approves Export of All Edible Oils in Bulk

March 30, 2018
 Prime Minister Shri Narendra Modi's Cabinet Committee on Economic Affairs has given its nod to the proposal of Ministry of Commerce & Industry to allow the export of all varieties of edible oils except mustard oil.

Mustard oil will continue to be exported only in consumer packs to 5 Kgs and with a minimum export price of US $900 per tonne.

Significance

Removing of restrictions on the export of all edible oils will provide additional marketing avenues for edible oils and oilseeds. It will also benefit the farmers by way of better realisation for oilseeds. Idle capacity in India's edible oils industry will be utilised. This move is a step towards Ease of Doing Business by removing confusion arising out of prohibition on the export of edible oils and a plethora of exemptions.

Background:

India witnessed a jump in the production of oilseeds in 2016-17. At present, only certain edible oils can be exported in bulk and other oils only in consumer packs upto 5 Kg with MEP. In order to support growing production of oilseeds and to explore additional avenues for marketing of edible oils, it is required to allow bulk export of all edible oils with the exception of mustard oil, which is an item of mass consumption in India.

Expected Questions

1. Ministry of Commerce & Industry has been allowed the export of all varieties of edible oils except
a. mustard oil
b. peanut oil
c. sesame oil
d. sunflower oil
e. palm oil

India exports mustard oil exported only in consumer packs to 
a. 2 Kg
b. 1 kg
c. 5 kg
d. 4 kg
e. None

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