India Bans Exports of Edible Oils to Boost Supplies

(Bloomberg) — India, the world’s second-biggest buyer of vegetable oils, banned exports of all edible oils to boost local supplies amid concern a smaller winter oilseed crop may worsen a shortage.

The one-year restriction is effective from yesterday, the directorate general of foreign trade said on its Web site today. Edible oil shipments from the South Asian nation comprise mostly groundnut oil and coconut oil to the U.S., Europe and China.


India cut the levy on vegetable oil imports four times last year to the lowest since at least 2000, joining China, Malaysia and Thailand in securing food supplies. Prime Minister Manmohan Singh’s government has curbed exports of rice and wheat, capped retail fuel prices and banned some commodities trading to curb inflation before general elections in May 2009.

“Ban on exports is another step to ensure that local prices of edible oils don’t flare up,” B.V. Mehta, executive director at the Solvent Extractors’ Association, said in a phone interview in Mumbai. “Government could take more steps such as reducing import duties or banning futures trade in oilseeds.”

Bloomberg