India: SEA urged the government to check huge import of soybean oil from Nepal

Published 2021년 5월 31일

Tridge summary

The Solvent Extractors Association of India (SEA) has appealed to the Indian government to curb the significant import of soybean oil from Nepal under zero duty, claiming that this trade practice is evading the rules of origin and could lead to a revenue loss of Rs 1,200 crore annually. The government exempts customs duty on goods exported to India from five least developed SAARC countries. However, SEA points out that Nepal, which lacks its own soybean production and has a limited capacity for crushing imported soybean, should not be exporting large quantities of soybean oil to India. Instead, SEA proposes that the government should regulate imports through government PSUs, halt imports under the SAFTA agreement, and set a quota for refined oils imports from Nepal. India satisfies 60% of its edible oils demand through imports.

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Original content

Edible oil trade body SEA on Monday urged the government to check huge import of soybean oil at zero duty from Nepal flouting rules of origin, saying this may lead to an annual revenue loss of Rs 1,200 crore to the exchequer and hurt domestic refiners.Customs duty is fully exempted on goods exported to India by the five least developed SAARC countries. Taking advantage of this exemption, palm oil and soybean oil are being imported via Nepal and Bangladesh in big quantities, it said. Otherwise, import duty, including cess, on refined palmolein and refined soya oil is 49.5 per cent.“Massive influx of soybean oil from Nepal into India flouting rules of Origins (is) seriously hurting domestic refiners, farmers and loss of revenue to the government. We have requested the government to initiate the action to regulate inflow,” Solvent Extractors Association of India (SEA) said in a statement.The trade body said it has made a representation in this regard to Union Agriculture Minister ...

Source: Financialexpress