NEW DELHI: Welcoming exemption of exporters of edible oil and rice from the purview of stock holding limits, the Commerce Ministry today said the decision will help reduce their transaction cost.
"The Commerce and Industry Minister Anand Sharma has welcomed the order issued by Department of Consumer Affairs to exempt stocks of edible oil, edible oilseeds and rice meant for export from the stock holding limit under the Essential Commodities Act," an official statement said.
The commerce ministry said that the exporters have been demanding that they should not be subjected to stock holding limit prescribed under the Act, if they have merchandize stocks of such commodities meant for shipments.
"This will address the long felt need of such exporters and reduce their transaction cost," it said.
In November last year, the Union Cabinet has exempted exporters who have
IEC Code issued by the Directorate General of Foreign Trade (DGFT) from stockholding limits imposed under the Essential Commodities Act, 1955.
However, this exemption is limited only to the stocks meant for export and not domestic sale.
The country, which meets 50 per cent of edible oil demand through imports, exports small quantities of groundnut, sunflower and rapeseed oils to cater to expatriate demand.
Foreign shipments of edible oil in branded consumer packs are exempted from the ban.
Domestic production of edible oil is just around 7 million tonnes, against the annual demand of 17-18 million tonnes. The shortages are met via imports.
India is the world's second largest rice producer and one of the biggest exporter.
Source : economictimes.indiatimes.com