The Commerce Ministry’s proposal to allow unrestricted exports of rice bran oil in bulk has been approved by the Cabinet Committee on Economic Affairs (CCEA). It removed the quantitative restrictions of 10,000 tonnes per annum on exports of organic edible oils. The government has now decided to allow bulk exports of rice bran oil, considered as premium edible oil with limited consumption in India, without any restrictions of minimum export price or consumer packs.
This move would not increase the cost of rice. The demand of rice bran oil remains limited in the domestic market. Hence, in order to help small rice millers realize better price the centre has allowed bulk exports of rice bran oil even though India is a major importer of edible oils.
India imports over 10 million tonnes of vegetable oil -- largely edible -- annually, which is some 60% of the country’s total demand.