Jun 25 2010 2:26PM
MUMBAI (Dow Jones)--India's edible oil industry has urged the federal government to remove restrictions on exports of edible oil as prices have fallen sharply and farmers have been left with large stocks of oilseeds.
The government currently allows the export of edible oil in consumer packs of up to five kilograms, with a maximum limit of 10,000 metric tons annually. Exports of edible oils were freely allowed until March 2008.
"The export of edible oils, if freely allowed is unlikely to reach 50,000-60,000 tons per annum, which is hardly 0.35% of (India's) total edible oil consumption," said Ashok Sethia, president of the Solvent Extractors' Association of India.
Before the restrictions, India exported 20,000-30,000 tons of edible oil a year.
From November to June, India exported only 8,000 tons of edible oil. India mainly exports premium edible oils like coconut, sesame, rapeseed and groundnut oil.
The trade body also reiterated its demand to impose a 20% import duty on crude edible oil and 27.5% on refined edible oils.
India, the world's second-largest vegetable oil importer, currently doesn't impose any import tax on crude edible oils but levies a 7.5% tax on refined edible oils.
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