This year, considering the importation of a large amount of soybean oil in India via Nepal, the country’s eating oil industry has called for immediate steps from the government. It not only does it damage the domestic oil processing industry but also affects the income of the farmers and the government’s income.
Free imports from Nepal
Under the South Asian Independent Independent Business Zone (SAFTA), there is no import tax on eaten oils imported from Nepal to India. Using this, traders send oil to India at a cheap rate.
P.V. Mehta said, “The government must decide on the monthly allocation of eating oils imported from Nepal so that this tax exemption cannot be misused.” He said the oil from Nepal is 10-15% cheaper than domestic oil.
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The domestic industry is experiencing losses
After a small processing in Nepal, Sudhakar Desai, president of the Indian Vegetable Oil Producers Association (IVPA), has written to the Agriculture Minister to worry that crude oil imported crude oil is being sent to India. This is not only aimed at reducing the competitive efficiency of domestic refinery, but also declining the demand for farmers’ crops.
According to the IVPA, between January 2025, Nepal imported 0.18 million tonnes of eating oil from India, which is 0.12 million tonnes higher than 2024. The annual consumption of Nepal is about 0.43 million tonnes and its production capacity.
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‘Calbandi’ is required from government agencies
The oil industry has recommended to control oil imports from Nepal through government agencies such as NAFED and NCCF, maintain transparency and prevent unnecessary imports.
The government had previously increased the import duty on the government
Last year, the government increased the import duty on crude from 5.5% to 27.5% and the sophisticated oil duties increased from 13.75% to 35.75%. But this policy is affected by the lack of duty to import from Nepal.
SAFTA must review the contract
Both SAE and IVPA believe that the time has come to re -referred to the import of agricultural commodities under the Safta Agreement. Also, it is necessary to monitor the imports of important products such as eating oil.
(Tagstotranslate) cooking oil
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