Cheap Imports
Cheap edible oil imports from Nepal threatening domestic refineries - SEA
This story was originally published at 16:16 IST on 23 January 2025
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MUMBAI – Cheap edible oil import from Nepal to India under the South Asian Free Trade Area agreement is threatening the viability of domestic refineries, the Solvent Extractors' Association of India said Thursday. In a letter, the association urged the government to find a balanced solution that honours SAFTA commitments while protecting domestic farmers and refiners.
"... the recent duty hike on edible oils in September 2024, combined with the 0% duty under SAFTA, has led to an influx of cheaper refined oil from Nepal," the association said. The import of cheaper oil from Nepal is affecting the domestic oil refining industries in north, east and central India, it said.
Under the SAFTA agreement, edible oil is allowed to be imported from member countries at zero duty. The members of SAFTA are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.
The association also said there is a slowdown in soymeal exports from India as competition has intensified due to the recent global oversupply. India exported 1.49 million tonnes of soymeal in Apr-Dec compared with 1.21 million tonnes in the same period last year.
Increased production and supply of distiller's dried grains with solubles from maize and grains is dampening the demand for oilmeals in the local market, the association said.
Also, rapeseed meal export to Bangladesh is facing uncertainty, leading to a reduction in volume in recent months, it said. India's oilmeal exports to Bangladesh fell nearly 17% on year to 547,657 tonnes in Apr-Dec.
The letter also said the annual International Castor Conference will be held on Feb 14-15 in Gujarat. The conference is likely to be attended by over 400 delegates from both India and abroad, it said. End
Reported by Anjali Lavania
Edited by Saji George Titus
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