The Hindu Business Line : ‘Edible oil export ban to have little impact’

Mumbai, March 28 The ban on export of edible oils, notified on March 17, is unlikely to have any marked impact on domestic supply because of small volume, but is sure to damage the country’s reputation as a reliable supplier of premium oils, according to Indian Oilseeds and Produce Exporters Association (IOPEA).

Premium quality oils – groundnut oil, sesame oil, safflower oil and coconut oil – exported from here in modest quantities are intended to meet the specialised demand for such oils from persons of Indian origin staying abroad, the trade body pointed out, adding that denial of transitional arrangements can lead to arbitration or litigation.

Instead of banning exports, using the foreign exchange earned on every tonne of indigenous oils exported at premium prices, the country can import 1.5 tonnes of cheaper oils from the world market, it has argued. An export promotion council designated by the Commerce Ministry, IOPEA is sore that it was not consulted before the prohibition on export was imposed.

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