India: Massive influx of soybean oil from Nepal hurting domestic refiners

Published Jun 8, 2021

Tridge summary

The Solvent Extractors Association of India (SEA) has expressed concern over the significant import of soybean oil from Nepal, which is reportedly cutting into the market share of Indian refiners and causing financial harm to farmers. The SEA contends that these imports are not complying with the 20% value addition rule stipulated in the Indo-Nepal treaty. To mitigate this issue, the SEA recommends channeling imports through public sector units like Nafed and distributing the oil to the needy through the public distribution system. Additionally, the SEA proposes setting a quota for refined oil imports from Nepal and regulating their distribution to minimize impact on the domestic refining industry.

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Original content

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 ...

Source: Financialexpress