Massive influx of soyabean oil from Nepal hurting domestic refiners

By: |
June 08, 2021 1:00 AM

“The Nepal ministry of industry & supplies as well as Nepalese Chambers of Commerce and Industry has stated that certificate of origin issued for export of refined soyabean oil to India is meeting the value addition of 20% norms under Indo-Nepal treaty.

Moreover, it would also help the domestic refining industry in Eastern and Northern India, which is facing the brunt of zero duty imports flooding these markets from Nepal, said BV Mehta, executive director, SEA.

The Solvent Extractors Association of India (SEA) has stated that the massive influx of soyabean oil from Nepal into India, flouting rules of origin, is seriously hurting domestic refiners, farmers and is causing revenue loss to the government.

“The Nepal ministry of industry & supplies as well as Nepalese Chambers of Commerce and Industry has stated that certificate of origin issued for export of refined soyabean oil to India is meeting the value addition of 20% norms under Indo-Nepal treaty.

SEA has suggested canalising imports through some PSU like Nafed and distributing the oil to the vulnerable section of society through public distribution system. Without lowering overall import duty for the country, the government would be able to get zero duty oil from Nepal in a much more regulated manner which can provide solace to the underprivileged, the association said.

Moreover, it would also help the domestic refining industry in Eastern and Northern India, which is facing the brunt of zero duty imports flooding these markets from Nepal, said BV Mehta, executive director, SEA.

The association also suggested fixing the quota for import of refined oils from Nepal to avoid excessive imports and distributing month-wise / regional-wise to have minimum impact on domestic refinery industry. Reducing import duty may not help much as it gets negated by increase in values internationally, the association said.

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