Solvent Extractors Association in India seeks action on import of soybean oil via Nepal flouting rules of origin

Published Jun 3, 2021

Tridge summary

The Solvent Extractors Association (SEA) of India has called on the government to investigate the large import of soybean oil from Nepal at zero duty, which the association believes is being done fraudulently and could lead to a revenue loss of Rs 1,200 crore per year. The SEA also expressed concern that this could harm domestic refiners and hurt farmers. The SEA has made a representation to the Union Agriculture Minister and the Food and Consumer Affairs Minister, highlighting that Nepal does not produce soybean or palm oil and that the imports are being routed through Nepal or Bangladesh to avoid the 'Rules of Origin' for duty exemption. The SEA has recommended that the government monitor the 'Rules of Origin', limit imports through government PSUs, and stop imports under the SAFTA agreement.

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Original content

Edible oil trade body Solvent Extractors Association (SEA) has urged the government to check huge import of soybean oil at zero duty from Nepal flouting rules of origin. “This may lead to an annual revenue loss of Rs 1,200 crore to the exchequer and hurt domestic refiners,” the association said. 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. Import duty, including cess, on refined palmolein and refined soya oil is currently at 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 ...

Source: Indoasiancommodities