Rampant imports of such vanaspati, or hydrogenated vegetable oil, have raised questions about consumer health, as some consigments of RBD palmolein being imported by the Nepal-based units via Calcutta port were found to contain animal fat.

Paradoxically, the Indian traders based here are crying foul over the malpractices of their brethren who have set up units in Nepal to make a quick buck.

Last month, SR Gupta, assistant director general at the Directorate General of Health Services, directed all chief Commissioners of Customs and all health offices at ports and airports to test all food articles.

"All imported consignments including vanaspati coming from Nepal should be subjected to chemical tests in the laboratory for conforming to standards prescribed under PFA Rules before being released for human consumption," he stated in a letter.

Gupta said in his letter: "It has been brought to the notice of this directorate by the ministry of food and consumer affairs (department of sugar and edible oils) and Vanaspati Manufacturers' Association of India that vanaspati brought from Nepal under the Indo-Nepal Trade Treaty has been found to be sub-standard as per standards laid down under PFA Rules 1954."

The letter further said "What is more serious is that as per complaints, animal fats are also being imported into India in the name of vanaspati."

The fact was also brought to the notice of the Union ministry for health and family welfare, which apprised the finance ministry of the matter.

Rajendra Singh, under-secretary at the Central Board of Excise & Customs (CBEC) under the ministry of finance, stepped in and asked all chief Commissioners of Customs not to allow clearance of any food consignments without a no-objection certificate (NOC) from port health offices.

In the past few years, vanaspati imports from Nepal have gone up steeply since the consignments are duty free under the Indo-Nepal Trade Treaty. In April-March 1998-99 import of vanaspati from Nepal through three land customs stations -- Panitanki, Raxaul and Jogbani -- was 65,249 tonnes, more than double the 31,722 tonnes imported in 1997-98.

This trend has continued in the current fiscal. Import in the first two months of 1999-2000 was 10,538 tonnes as against 7070 tonnes in the corresponding period of 1998-99.

Vanaspati oils from Nepal are about Rs 20-30 cheaper than the Indian prices of Rs 500- 520 per 15kg pack, according to Kunal Banerjee, general manager, Kusum Products Ltd.

But he added that they are cheaper not only due to zero import duty, but because the units in Nepal do not follow proccessing norms stipulated for manufacturing vanaspati oils.

Manufacturers in Nepal import refined, bleached and degummed palmolein oils directly from Malaysia through Indian ports for which there is no import duty but only port charges. After importing them they directly sell these to Indian markets putting hydrogen and ghee flavour on it.

On June 25, a big consignment of 11,000 tonnes of RBD palmolein imported for Nepal was found contaminated with animal fats and was finally confiscated by the port authority, Banerjee observed.

Almost all vanaspati manufacturers in Nepal are from the Indian trading community who are taking advantage of the treaty and opening more and more manufacturing units there with an objective to sell in the Indian markets.

At present, about 60 such small units are in operation, producing around 650 tonnes of vanaspati per day and more than 75 per cent of it is exported legally to India.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.