Cabinet Approves Export of Edible Oils from DTA to SEZ Units

The Cabinet Committee on Economic Affairs has approved the proposal of the Department of Commerce for partially allowing export of certain edible oils as per the following:

(i) Export of edible oil from Domestic Tariff Area (DTA) to Special Economic Zones (SEZs) to be consumed by SEZ units for manufacture of processed food products.

(ii) Allowing export of coconut oil, which at present is permitted to be exported only from the Kochi port, from all EDI ports and through Land Customs Stations (LCS) to be notified by the Department of Commerce subsequently.

(iii) Permission to export edible oils with a Minimum Export Price (MEP) of USD 1500/MT, in branded consumer packs of upto 5 Kgs, without any quantitative limit.

(iv) Setting up of an Inter-ministerial Committee (IMC) under the chairmanship of the Commerce Secretary, with Secretaries of Department of Consumer Affairs and Department of Food & Public Distribution as members, to calibrate the MEP from time to time. The committee can co-opt members as special invitees as per felt need.

The export of edible oils, with certain exemptions, has been banned since 17.03.2008. At present, export of coconut oil is permitted but only through Kochi port. In order to support domestic producers of coconut, who are suffering because of sharp drop in prices, it has been decided that rather than limiting exports from Kochi, export of coconut oil may be allowed from all EDI ports and through LCS to be notified by the Department of Commerce subsequently.

Export of edible oils in branded consumer packs upto 5 Kgs, within an overall ceiling of 20,000 MTs is permitted at present. It has been decided to remove the quantitative limit and to allow export of only those premium edible oils, in consumer packs of upto 5 Kgs, which can fetch a Minimum Export Price (MEP) of USD 1500 PMT. This would ensure that the low priced edible oils (which are consumed by the general public and have a large domestic demand) are not allowed to be exported. It has also been decided to set up an inter-ministerial committee under chairmanship of Commerce Secretary with Secretaries of Department of Consumer Affairs and Department of Food & Public Distribution as members to periodically calibrate the MEP so as to provide flexibility in using MEP as an instrument to regulate exports.

[Source: PIB (CCEA) Press Release dated 31^st January 2013]