Relief for oilmeal exporters as government rules out ban
The animal husbandry department reportedly made the move on the request of cattle and poultry feed makers who were clamouring for a ban on oilmeal exports.
By Ratna Ganguli, TNN |
KOLKATA: In the fight between cattle and poultry feed manufacturers and oilmeal exporters over the issue of banning oilmeal exports from India, the latter have managed to get a walkover. The government has ruled out any plans to ban oilmeal exports.
It has also assured solvent extractors about reviewing their proposal of relaxing the current ban on export of edible oils, which has been imposed in mid-March to cool down its prices in the domestic market.
Last week, the animal husbandry department, under the Union agriculture ministry, had proposed to the Cabinet to consider a ban on exports of certain oilmeals, saying that prices of milk, eggs and meat have gone up due to high price of oilmeals owing to export.
The department has reportedly made the move on the request of cattle and poultry feed makers who were clamouring for a ban on oilmeal exports, holding it responsible for the recent 30-50% hike in prices of oilmeals, the basic ingredients of animal feed.
But the department had to swallow its words as its boss did not like the idea. After listening to oilmeal exporters, opposing the ban, Sharad Pawar, the minister of agriculture, has now asked the department to withdraw the proposal sent to the Cabinet.
Opposing the department���s move, the Solvent Extractors��� Association of India (SEA) has told Mr Pawar that the industry is recovering about 15 lakh tonnes of edible oils by solvent extraction process, which will fall sharply if oilmeals exports are banned.
Reduction in the oil recovery rate will further put pressure on domestic edible oil production, said SEA while meeting the minister. According to SEA president Ashok Sethia, the commerce ministry too is not in favour of such a proposal and said that it will see to it that oilmeals exports are not disturbed.
Mr Pawar has also agreed to re-examine the industry���s proposal allowing edible oils exports, though in small packs, said Mr Sethia. SEA in its recent meeting with Mr Pawar has requested him to take initiative to allow edible oils exports in packs of 5 litres, subject to a cap of 25,000-30,000 tonnes in the current year.
Mainly, groundnut oil, sesame seed oil and to some extent mustard oil are being exported from the country. To bring down edible oil prices at home, the government has banned edible oils exports from March 17 for one year.
It has also assured solvent extractors about reviewing their proposal of relaxing the current ban on export of edible oils, which has been imposed in mid-March to cool down its prices in the domestic market.
Last week, the animal husbandry department, under the Union agriculture ministry, had proposed to the Cabinet to consider a ban on exports of certain oilmeals, saying that prices of milk, eggs and meat have gone up due to high price of oilmeals owing to export.
The department has reportedly made the move on the request of cattle and poultry feed makers who were clamouring for a ban on oilmeal exports, holding it responsible for the recent 30-50% hike in prices of oilmeals, the basic ingredients of animal feed.
But the department had to swallow its words as its boss did not like the idea. After listening to oilmeal exporters, opposing the ban, Sharad Pawar, the minister of agriculture, has now asked the department to withdraw the proposal sent to the Cabinet.
Opposing the department���s move, the Solvent Extractors��� Association of India (SEA) has told Mr Pawar that the industry is recovering about 15 lakh tonnes of edible oils by solvent extraction process, which will fall sharply if oilmeals exports are banned.
ADVERTISEMENT
Reduction in the oil recovery rate will further put pressure on domestic edible oil production, said SEA while meeting the minister. According to SEA president Ashok Sethia, the commerce ministry too is not in favour of such a proposal and said that it will see to it that oilmeals exports are not disturbed.
Mr Pawar has also agreed to re-examine the industry���s proposal allowing edible oils exports, though in small packs, said Mr Sethia. SEA in its recent meeting with Mr Pawar has requested him to take initiative to allow edible oils exports in packs of 5 litres, subject to a cap of 25,000-30,000 tonnes in the current year.
Mainly, groundnut oil, sesame seed oil and to some extent mustard oil are being exported from the country. To bring down edible oil prices at home, the government has banned edible oils exports from March 17 for one year.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
