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March 19, 2008 17:15 IST
Last Updated: March 19, 2008 17:28 IST
The 'Ban Raj' is back. In an effort to rein in rising inflation, the Centre has banned export of all edible oils from the country.
The government move is a desperate measure to control inflation, which is threatening to take alarming proportions in an election year.
The government fears that of the price rise continues, the present government may lose all the praise it got for a farmer-friendly Budget presented by finance minister P Chidambaram.
Not wanting to create any trouble for the government due to rising inflation, the Centre has decided to stop export of all sorts of edible oils so that the country will not face any supply shortages.
In a notification issued on Monday evening, the Directorate-General of Foreign Trade, an arm of the Commerce Ministry, said the ban, with immediate effect, would be applicable for one year.
Prices of cooking oils witnessed sharp rise during the early part of this month in tune with the global trend, where the rates zoomed to record highs.
Also, the Union Government was expected to cut Customs duty on edible oils import in the Budget to cool down rising prices.
Edible oil prices have been virtually on the boil since last year on higher crude prices, diversion of vegetable oil for production of bio-diesel.
The Centre's ban on exports has disappointed the industry. They felt that there was no need for a ban on export of edible oils from the country. These premium exports could have been substituted by higher volume imports of cheaper oils.
The quantity of edible oils exported from the country is hardly 40,000 tonnes, whereas imports are nothing less than 51 lakh tonnes.
In Mumbai, on spot and Futures market of oilseed and oil, groundnut ready oil declined Rs 5 to Rs 720 for 10 kg, while RBD palmolein slipped Rs 7 to Rs 595.
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