India has banned exports of edible oil for one year in its efforts to check rising domestic prices and control inflation.

The ban apparently applies even to exporters who had received letters of credit (L/Cs) for edible oil exports orders placed before the ban came into force.

Another ban

The ban on edible oils was applied on 17 March 2008 and will be in place until 16 March 2009.

This latest ban follows similar bans on exports of sugar, wheat, pulses and skimmed milk powder, all of which have been banned as the government strives to control inflation. It has also regulated exports of rice and onion.

Transitional arrangements

In a notification dated 17 March 2008, India's Directorate General of Foreign Trade said the ban also covers deals under transitional arrangements.

This implies that exporters who had received L/Cs for export orders on or before 17 March 2008 when the ban came into effect will not be allowed to honour their commitments.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.