Allow bulk export of groundnut oil: Traders to Centre.

Ahmedabad: In the wake of groundnut oil prices remaining below minimum support price (MSP), the Solvent Extractors Association of India (SEA) has requested the central government to allow the export of groundnut oil in bulk.

The apex body of edible oil industry believes that the move will help farmers fetch better prices for their produce amid bumper production of the commodity.

"To support the groundnut farmers, we strongly request the government to allow export of groundnut oil in bulk without MEP (minimum export price). This will change sentiment in the market and the farmers will get little better price for his produce," said Atul Chaturvedi, president, SEA. At present, groundnut oil export is permitted only in consumer packs of 5 kgs.

The government has fixed MSP for groundnut in shell at Rs4,220 per quintal. However, the prices have already fallen below MSP and farmers are forced to make distressed sale at Rs3,700-3,800 per quintal. Farmers have produced the bumper crop of groundnut in Gujarat and other states, but they are disappointed due to sharp fall in prices of groundnut below MSP, the association said.

Trade estimates suggest that around 40,000-50,000 tonnes of groundnut can be exported from India if exports in bulk is allowed. "This will not affect the domestic supply as it forms only 0.25% of total edible oil consumption in India," the trade body said.

Kharif production of groundnut in Gujarat is estimated to jump by 97% to 29.40 lakh tonnes in 2016-17 from 14.95 lakh tonnes last year. The trend is similar in other groundnut growing states.

Overall, India's groundnut production is seen up by 70% to 54.80 lakh tonnes in 2016-17 Kharif season as compared to 47.08 lakh tonnes last year.

Source : timesofindia.indiatimes.com